[Federal Register Volume 81, Number 39 (Monday, February 29, 2016)]
[Rules and Regulations]
[Pages 10077-10080]
[FR Doc No: 2016-04213]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 97

[Docket No. 31063; Amdt. No. 3684]

Standard Instrument Approach Procedures, and Takeoff Minimums and
Obstacle Departure Procedures; Miscellaneous Amendments

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This rule amends, suspends, or removes Standard Instrument
Approach Procedures (SIAPs) and associated Takeoff Minimums and
Obstacle Departure Procedures for operations at certain airports. These
regulatory actions are needed because of the adoption of new or revised
criteria, or because of changes occurring in the National Airspace
System, such as the commissioning of new navigational facilities,
adding new obstacles, or changing air traffic requirements. These
changes are designed to provide for the safe and efficient use of the
navigable airspace and to promote safe flight operations under
instrument flight rules at the affected airports.

DATES: This rule is effective February 29, 2016. The compliance date
for each SIAP, associated Takeoff Minimums, and ODP is specified in the
amendatory provisions.
    The incorporation by reference of certain publications listed in
the regulations is approved by the Director of the Federal Register as
of February 29, 2016.

ADDRESSES: Availability of matter incorporated by reference in the
amendment is as follows:

For Examination

    1. U.S. Department of Transportation, Docket Ops-M30, 1200 New
Jersey Avenue SE., West Bldg., Ground Floor, Washington, DC 20590-0001;
    2. The FAA Air Traffic Organization Service Area in which the
affected airport is located;
    3. The office of Aeronautical Navigation Products, 6500 South
MacArthur Blvd., Oklahoma City, OK 73169 or,
    4. The National Archives and Records Administration (NARA).

For information on the availability of this material at NARA, call 202-
741-6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.

Availability

    All SIAPs and Takeoff Minimums and ODPs are available online free
of charge. Visit the National Flight Data Center online at nfdc.faa.gov
to register. Additionally, individual SIAP and Takeoff Minimums and ODP
copies may be obtained from the FAA Air Traffic Organization Service
Area in which the affected airport is located.

FOR FURTHER INFORMATION CONTACT: Thomas J. Nichols, Flight Procedure
Standards Branch (AFS-420) Flight Technologies and Procedures Division,
Flight Standards Service, Federal Aviation Administration, Mike
Monroney Aeronautical Center, 6500 South MacArthur Blvd., Oklahoma
City, OK 73169 (Mail Address: P.O. Box 25082 Oklahoma City, OK 73125)
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: This rule amends Title 14, Code of Federal
Regulations, Part 97 (14 CFR part 97) by amending the referenced SIAPs.
The complete regulatory description of each SIAP is listed on the
appropriate FAA Form 8260, as modified by the National Flight Data
Center (NFDC)/Permanent Notice to Airmen (P-NOTAM), and is incorporated
by reference under 5 U.S.C. 552(a), 1 CFR part 51, and 14 CFR 97.20.
The large number of SIAPs, their complex nature, and the need for a
special format make their verbatim publication in the Federal Register
expensive and impractical. Further, airmen do not use the regulatory
text of the SIAPs, but refer to their graphic depiction on charts
printed by publishers of aeronautical materials. Thus, the advantages
of incorporation by reference are realized and publication of the
complete description of each SIAP contained on FAA form documents is
unnecessary. This amendment provides the affected CFR sections, and
specifies the SIAPs and Takeoff Minimums and ODPs with their applicable
effective dates. This amendment also identifies the airport and its
location, the procedure and the amendment number.

Availability and Summary of Material Incorporated by Reference

    The material incorporated by reference is publicly available as
listed in the ADDRESSES section.
    The material incorporated by reference describes SIAPs, Takeoff
Minimums and ODPs as identified in the amendatory language for part 97
of this final rule.

The Rule

    This amendment to 14 CFR part 97 is effective upon publication of
each

separate SIAP and Takeoff Minimums and ODP as amended in the
transmittal. For safety and timeliness of change considerations, this
amendment incorporates only specific changes contained for each SIAP
and Takeoff Minimums and ODP as modified by FDC permanent NOTAMs.
    The SIAPs and Takeoff Minimums and ODPs, as modified by FDC
permanent NOTAM, and contained in this amendment are based on the
criteria contained in the U.S. Standard for Terminal Instrument
Procedures (TERPS). In developing these changes to SIAPs and Takeoff
Minimums and ODPs, the TERPS criteria were applied only to specific
conditions existing at the affected airports. All SIAP amendments in
this rule have been previously issued by the FAA in a FDC NOTAM as an
emergency action of immediate flight safety relating directly to
published aeronautical charts.
    The circumstances that created the need for these SIAP and Takeoff
Minimums and ODP amendments require making them effective in less than
30 days.
    Because of the close and immediate relationship between these
SIAPs, Takeoff Minimums and ODPs, and safety in air commerce, I find
that notice and public procedure under 5 U.S.C. 553(b) are
impracticable and contrary to the public interest and, where
applicable, under 5 U.S.C. 553(d), good cause exists for making these
SIAPs effective in less than 30 days.
    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.
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. For the same reason, the FAA
certifies that this amendment will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 97

    Air traffic control, Airports, Incorporation by reference,
Navigation (air).

    Issued in Washington, DC, on February 12, 2016.
John S. Duncan,
Director, Flight Standards Service.

Adoption of the Amendment

    Accordingly, pursuant to the authority delegated to me, Title 14,
Code of Federal regulations, Part 97, (14 CFR part 97), is amended by
amending Standard Instrument Approach Procedures and Takeoff Minimums
and ODPs, effective at 0901 UTC on the dates specified, as follows:

PART 97--STANDARD INSTRUMENT APPROACH PROCEDURES

0
1. The authority citation for part 97 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40103, 40106, 40113, 40114,
40120, 44502, 44514, 44701, 44719, 44721-44722.

0
2. Part 97 is amended to read as follows:

Sec. Sec.  97.23, 97.25, 97.27, 97.29, 97.31, 97.33, 97.35  [AMENDED]

    By amending: Sec.  97.23 VOR, VOR/DME, VOR or TACAN, and VOR/DME or
TACAN; Sec.  97.25 LOC, LOC/DME, LDA, LDA/DME, SDF, SDF/DME; Sec.
97.27 NDB, NDB/DME; Sec.  97.29 ILS, ILS/DME, MLS, MLS/DME, MLS/RNAV;
Sec.  97.31 RADAR SIAPs; Sec.  97.33 RNAV SIAPs; and Sec.  97.35 COPTER
SIAPs, Identified as follows:

* * * Effective Upon Publication

--------------------------------------------------------------------------------------------------------------------------------------------------------
       AIRAC date             State             City               Airport          FDC No.      FDC date                      Subject
--------------------------------------------------------------------------------------------------------------------------------------------------------
31-Mar-16...............  WY            Casper.............  Casper/Natrona            5/0128     01/26/16  ILS OR LOC RWY 3, Amdt 7.
                                                              County Intl.
31-Mar-16...............  WY            Casper.............  Casper/Natrona            5/0129     01/26/16  VOR/DME RWY 21, Amdt 9.
                                                              County Intl.
31-Mar-16...............  WY            Casper.............  Casper/Natrona            5/0130     01/26/16  VOR/DME RWY 3, Amdt 6B.
                                                              County Intl.
31-Mar-16...............  WY            Fort Bridger.......  Fort Bridger.......       5/0252     01/26/16  RNAV (GPS) RWY 22, Amdt 1.
31-Mar-16...............  WA            Olympia............  Olympia Rgnl.......       5/0275     01/26/16  ILS OR LOC RWY 17, Amdt 12A.
31-Mar-16...............  AK            New Stuyahok.......  New Stuyahok.......       5/0563     01/27/16  RNAV (GPS) RWY 14, Orig.
31-Mar-16...............  AK            New Stuyahok.......  New Stuyahok.......       5/0564     01/27/16  RNAV (GPS) RWY 32, Orig.
31-Mar-16...............  MT            Lewistown..........  Lewistown Muni.....       5/0890     01/27/16  Takeoff Minimums and (Obstacle) DP, Amdt 3A.
31-Mar-16...............  CO            Buena Vista........  Central Colorado          5/0908     01/26/16  RNAV (GPS) RWY 33, Orig-A.
                                                              Rgnl.
31-Mar-16...............  UT            Moab...............  Canyonlands Field..       5/1609     01/27/16  VOR-A, Amdt 10A.
31-Mar-16...............  TN            Nashville..........  Nashville Intl.....       5/1824     02/03/16  RNAV (RNP) Z RWY 2C, Amdt 2A.
31-Mar-16...............  TN            Nashville..........  Nashville Intl.....       5/1825     02/03/16  RNAV (RNP) Z RWY 2L, Amdt 2A.
31-Mar-16...............  TN            Nashville..........  Nashville Intl.....       5/1827     02/03/16  RNAV (GPS) Y RWY 2R, Amdt 2B.
31-Mar-16...............  NE            Scribner...........  Scribner State.....       5/1842     02/09/16  RNAV (GPS) RWY 35, Amdt 1A.
31-Mar-16...............  FL            Winter Haven.......  Winter Haven's            5/1857     01/28/16  RNAV (GPS) RWY 5, Amdt 1A.
                                                              Gilbert.
31-Mar-16...............  CA            Oceanside..........  Oceanside Muni.....       5/1877     02/08/16  VOR-A, Amdt 3D.
31-Mar-16...............  CA            Oceanside..........  Oceanside Muni.....       5/1879     02/08/16  GPS RWY 24, Orig-B.
31-Mar-16...............  CA            Oceanside..........  Oceanside Muni.....       5/1881     02/08/16  GPS RWY 6, Orig-B.
31-Mar-16...............  CA            Tracy..............  Tracy Muni.........       5/2063     01/28/16  RNAV (GPS) RWY 30, Orig-A.
31-Mar-16...............  LA            New Orleans........  Lakefront..........       5/2080     02/09/16  RNAV (GPS) RWY 36L, Orig.
31-Mar-16...............  OR            Tillamook..........  Tillamook..........       5/2116     01/27/16  RNAV (GPS) RWY 13, Orig-A.
31-Mar-16...............  NC            Raleigh/Durham.....  Raleigh-Durham Intl       5/2439     01/28/16  VOR RWY 5R, Amdt 13C.
31-Mar-16...............  UT            Duchesne...........  Duchesne Muni......       5/2465     01/28/16  Takeoff Minimums and (Obstacle) DP, Orig.

31-Mar-16...............  UT            Roosevelt..........  Roosevelt Muni.....       5/2474     01/28/16  Takeoff Minimums and (Obstacle) DP, Amdt 1.
31-Mar-16...............  MN            St Paul............  St Paul Downtown          5/2707     02/08/16  RNAV (GPS) RWY 32, Orig.
                                                              Holman Fld.
31-Mar-16...............  AK            Central............  Central............       5/2890     01/26/16  RNAV (GPS) RWY 8, Orig.
31-Mar-16...............  AK            Central............  Central............       5/2891     01/26/16  RNAV (GPS) RWY 26, Orig.
31-Mar-16...............  AK            Togiak Village.....  Togiak.............       5/2972     01/28/16  NDB-B, Amdt 1.
31-Mar-16...............  AK            Togiak Village.....  Togiak.............       5/2974     01/28/16  NDB/DME-A, Amdt 1.
31-Mar-16...............  GA            Cedartown..........  Polk County Airport-      5/3368     02/03/16  RNAV (GPS) RWY 10, Orig.
                                                               Cornelius Moore
                                                              Field.
31-Mar-16...............  GA            Cedartown..........  Polk County Airport-      5/3369     02/03/16  RNAV (GPS) RWY 28, Orig.
                                                               Cornelius Moore
                                                              Field.
31-Mar-16...............  AK            Gambell............  Gambell............       5/3400     01/26/16  RNAV (GPS) RWY 16, Orig.
31-Mar-16...............  AK            Gambell............  Gambell............       5/3402     01/26/16  RNAV (GPS) RWY 34, Orig.
31-Mar-16...............  MT            Helena.............  Helena Rgnl........       5/4154     01/26/16  NDB-D, Amdt 3A.
31-Mar-16...............  MT            Helena.............  Helena Rgnl........       5/4156     01/26/16  VOR-A, Amdt 15.
31-Mar-16...............  AK            Wales..............  Wales..............       5/4651     01/27/16  RNAV (GPS) RWY 18, Orig-B.
31-Mar-16...............  WA            Shelton............  Sanderson Field....       5/4663     01/27/16  RNAV (GPS) RWY 5, Orig.
31-Mar-16...............  AK            Bettles............  Bettles............       5/5221     01/27/16  VOR/DME RWY 1, Amdt 1.
31-Mar-16...............  WV            Wheeling...........  Wheeling Ohio Co...       5/5312     01/28/16  Takeoff Minimums and (Obstacle) DP, Amdt 3.
31-Mar-16...............  FL            Plant City.........  Plant City.........       5/5679     01/28/16  RNAV (GPS) RWY 10, Amdt 1B.
31-Mar-16...............  AK            Minchumina.........  Minchumina.........       5/5730     01/26/16  Takeoff Minimums and (Obstacle) DP, Amdt 2.
31-Mar-16...............  CA            Tracy..............  Tracy Muni.........       5/5796     01/26/16  RNAV (GPS) RWY 26, Orig.
31-Mar-16...............  CA            Tracy..............  Tracy Muni.........       5/5797     01/26/16  RNAV (GPS) RWY 12, Amdt 1B.
31-Mar-16...............  CA            Tracy..............  Tracy Muni.........       5/5798     01/26/16  VOR/DME RWY 26, Orig.
31-Mar-16...............  AK            Point Hope.........  Point Hope.........       5/6615     01/26/16  NDB RWY 1, Amdt 2B.
31-Mar-16...............  AK            Point Hope.........  Point Hope.........       5/6622     01/26/16  NDB RWY 19, Amdt 2B.
31-Mar-16...............  AL            Tuskegee...........  Moton Field Muni...       5/6923     01/28/16  RNAV (GPS) RWY 13, Amdt 2A.
31-Mar-16...............  AL            Tuskegee...........  Moton Field Muni...       5/6924     01/28/16  RNAV (GPS) RWY 31, Amdt 2A.
31-Mar-16...............  AL            Tuskegee...........  Moton Field Muni...       5/6925     01/28/16  VOR-A, Amdt 4A.
31-Mar-16...............  CA            Placerville........  Placerville........       5/7082     01/26/16  RNAV (GPS) RWY 5, Amdt 2.
31-Mar-16...............  WY            Jackson............  Jackson Hole.......       5/7342     01/26/16  RNAV (GPS) Z RWY 19, Amdt 1.
31-Mar-16...............  WY            Jackson............  Jackson Hole.......       5/7343     01/26/16  RNAV (RNP) Y RWY 19, Amdt 1.
31-Mar-16...............  WY            Jackson............  Jackson Hole.......       5/7345     01/26/16  ILS Z OR LOC/DME RWY 19, Orig.
31-Mar-16...............  FL            Key West...........  Key West Intl......       5/7346     01/28/16  RNAV (GPS) RWY 27, Orig.
31-Mar-16...............  AK            Seward.............  Seward.............       5/7353     01/26/16  RNAV (GPS)-A, Orig.
31-Mar-16...............  IL            Flora..............  Flora Muni.........       5/7383     02/09/16  RNAV (GPS) RWY 21, Amdt 2A.
31-Mar-16...............  CA            Oxnard.............  Oxnard.............       5/7768     01/27/16  ILS OR LOC RWY 25, Amdt 13A.
31-Mar-16...............  CA            Oxnard.............  Oxnard.............       5/7772     01/27/16  VOR RWY 25, Amdt 10A.
31-Mar-16...............  CA            Oxnard.............  Oxnard.............       5/7773     01/27/16  RNAV (GPS) RWY 25, Amdt 1A.
31-Mar-16...............  CA            Camarillo..........  Camarillo..........       5/7866     01/26/16  RNAV (GPS) RWY 8, Orig.
31-Mar-16...............  WY            Pinedale...........  Ralph Wenz Field...       5/7931     01/28/16  NDB-A, Orig.
31-Mar-16...............  AK            Yakutat............  Yakutat............       5/7940     01/26/16  RNAV (GPS) RWY 11, Amdt 4.
31-Mar-16...............  CA            San Diego..........  Brown Field Muni...       5/7981     01/27/16  RNAV (GPS) RWY 8L, Amdt 1A.
31-Mar-16...............  AK            Wainwright.........  Wainwright.........       5/8173     01/28/16  NDB RWY 5, Amdt 1.
31-Mar-16...............  AK            Homer..............  Homer..............       5/8184     01/27/16  RNAV (GPS) Z RWY 22, Amdt 1B.
31-Mar-16...............  AK            Brevig Mission.....  Brevig Mission.....       5/8215     01/27/16  RNAV (GPS) RWY 12, Orig.
31-Mar-16...............  AK            Brevig Mission.....  Brevig Mission.....       5/8216     01/27/16  RNAV (GPS) RWY 30, Orig.
31-Mar-16...............  AK            Allakaket..........  Allakaket..........       5/8218     01/27/16  RNAV (GPS) RWY 23, Amdt 1.
31-Mar-16...............  AK            Allakaket..........  Allakaket..........       5/8221     01/27/16  RNAV (GPS) RWY 5, Amdt 1A.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8292     01/27/16  ILS OR LOC RWY 17, Amdt 1.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8293     01/27/16  RNAV (GPS) RWY 17, Amdt 1.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8294     01/27/16  ILS OR LOC RWY 26, Amdt 5.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8295     01/27/16  NDB RWY 26, Amdt 5.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8297     01/27/16  RNAV (GPS) RWY 26, Amdt 1.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8298     01/27/16  ILS OR LOC RWY 35, Amdt 1.
31-Mar-16...............  CO            Denver.............  Front Range........       5/8299     01/27/16  RNAV (GPS) RWY 35, Amdt 1.
31-Mar-16...............  AZ            Prescott...........  Ernest A Love Field       5/8468     02/08/16  RNAV (RNP) Z RWY 3R, Amdt 1.
31-Mar-16...............  AZ            Bullhead City......  Laughlin/Bullhead         5/8471     01/27/16  RNAV (GPS) RWY 16, Amdt 2.
                                                              Intl.
31-Mar-16...............  OR            Sunriver...........  Sunriver...........       5/8576     01/26/16  RNAV (GPS) RWY 18, Orig-C.
31-Mar-16...............  OR            Sunriver...........  Sunriver...........       5/8577     01/26/16  VOR/DME RWY 18, Amdt 1B.
31-Mar-16...............  TX            Navasota...........  Navasota Muni......       5/8997     02/03/16  RNAV (GPS) RWY 35, Orig-A.
31-Mar-16...............  TX            Navasota...........  Navasota Muni......       5/8999     02/03/16  VOR-A, Amdt 2.
31-Mar-16...............  TX            Navasota...........  Navasota Muni......       5/9001     02/03/16  RNAV (GPS) RWY 17, Orig-A.
31-Mar-16...............  LA            Slidell............  Slidell............       5/9020     02/09/16  VOR/DME RWY 18, Amdt 4A.
31-Mar-16...............  LA            Slidell............  Slidell............       5/9023     02/09/16  RNAV (GPS) RWY 36, Orig-B.
31-Mar-16...............  LA            Slidell............  Slidell............       5/9025     02/09/16  RNAV (GPS) RWY 18, Orig-A.

31-Mar-16...............  IL            Monee..............  Bult Field.........       5/9026     02/09/16  RNAV (GPS) RWY 27, Orig.
31-Mar-16...............  IL            Monee..............  Bult Field.........       5/9027     02/09/16  RNAV (GPS) RWY 9, Orig.
31-Mar-16...............  CA            Blythe.............  Blythe.............       5/9352     01/27/16  RNAV (GPS) RWY 26, Amdt 1.
31-Mar-16...............  NE            Lexington..........  Jim Kelly Field....       5/9468     02/03/16  RNAV (GPS) RWY 14, Amdt 1A.
31-Mar-16...............  WY            Afton..............  Afton Muni.........       5/9483     01/26/16  RNAV (GPS) RWY 34, Amdt 2.
31-Mar-16...............  WY            Afton..............  Afton Muni.........       5/9484     01/26/16  RNAV (GPS) RWY 16, Amdt 2.
31-Mar-16...............  CA            Napa...............  Napa County........       5/9545     01/28/16  VOR RWY 6, Amdt 13.
31-Mar-16...............  CA            Napa...............  Napa County........       5/9546     01/28/16  RNAV (GPS) Y RWY 36L, Amdt 2.
31-Mar-16...............  CA            Napa...............  Napa County........       5/9547     01/28/16  ILS OR LOC RWY 36L, Orig-A.
31-Mar-16...............  CA            Petaluma...........  Petaluma Muni......       5/9550     01/28/16  RNAV (GPS) RWY 29, Orig-A.
31-Mar-16...............  CA            Groveland..........  Pine Mountain Lake.       5/9796     01/28/16  Takeoff Minimums and (Obstacle) DP, Orig.
31-Mar-16...............  CA            Palo Alto..........  Palo Alto..........       5/9799     01/27/16  VOR/DME RWY 31, Orig-D.
31-Mar-16...............  WA            Richland...........  Richland...........       5/9908     01/28/16  RNAV (GPS) RWY 26, Amdt 2.
31-Mar-16...............  CA            Bakersfield........  Bakersfield Muni...       6/0829     01/27/16  VOR/DME RWY 34, Amdt 1A.
31-Mar-16...............  CA            Bakersfield........  Bakersfield Muni...       6/0830     01/27/16  RNAV (GPS) RWY 34, Orig-A.
31-Mar-16...............  CA            Groveland..........  Pine Mountain Lake.       6/1151     02/09/16  GPS RWY 27, Orig.
31-Mar-16...............  CA            Groveland..........  Pine Mountain Lake.       6/1152     02/09/16  RNAV (GPS) RWY 9, Orig.
31-Mar-16...............  PA            Ebensburg..........  Ebensburg..........       6/1283     01/27/16  RNAV (GPS) RWY 25, Orig-B.
31-Mar-16...............  PA            Ebensburg..........  Ebensburg..........       6/1366     01/27/16  RNAV (GPS) RWY 7, Orig-A.
31-Mar-16...............  AZ            Chandler...........  Chandler Muni......       6/2401     02/09/16  NDB RWY 4R, Orig-B.
31-Mar-16...............  MT            Roundup............  Roundup............       6/2450     02/08/16  RNAV (GPS) RWY 25, Orig-A.
31-Mar-16...............  MN            Grand Rapids.......  Grand Rapids/Itasca       6/2954     02/09/16  ILS OR LOC RWY 34, Amdt 2.
                                                              Co-Gordon Newstrom
                                                              Fld.
31-Mar-16...............  TX            Jasper.............  Jasper County-Bell        6/2957     02/09/16  RNAV (GPS) RWY 36, Orig.
                                                              Field.
31-Mar-16...............  IL            Lincoln............  Logan County.......       6/2960     02/08/16  Takeoff Minimums and (Obstacle) DP, Amdt 1.
31-Mar-16...............  MI            Marshall...........  Brooks Field.......       6/2961     02/09/16  RNAV (GPS) RWY 28, Orig-A.
31-Mar-16...............  MI            Marshall...........  Brooks Field.......       6/2962     02/09/16  VOR/DME-A, Orig.
31-Mar-16...............  AL            Wetumpka...........  Wetumpka Muni......       6/3254     02/08/16  RNAV (GPS) RWY 27, Orig.
31-Mar-16...............  FL            Marathon...........  The Florida Keys          6/3260     01/27/16  NDB-A, Orig.
                                                              Marathon.
31-Mar-16...............  FL            Marathon...........  The Florida Keys          6/3261     01/27/16  RNAV (GPS) RWY 7, Orig.
                                                              Marathon.
31-Mar-16...............  FL            Marathon...........  The Florida Keys          6/3262     01/27/16  RNAV (GPS) RWY 25, Amdt 1.
                                                              Marathon.
31-Mar-16...............  FL            Marathon...........  The Florida Keys          6/3263     01/27/16  Takeoff Minimums and (Obstacle) DP, Amdt 1B.
                                                              Marathon.
31-Mar-16...............  NH            Claremont..........  Claremont Muni.....       6/3441     02/08/16  NDB-A, Amdt 1.
31-Mar-16...............  AL            Wetumpka...........  Wetumpka Muni......       6/3453     02/08/16  RNAV (GPS) RWY 9, Orig.
31-Mar-16...............  AL            Wetumpka...........  Wetumpka Muni......       6/3454     02/08/16  VOR-A, Amdt 2.
31-Mar-16...............  TN            Camden.............  Benton County......       6/4091     02/03/16  RNAV (GPS) RWY 22, Orig-B.
31-Mar-16...............  TN            Camden.............  Benton County......       6/4092     02/03/16  RNAV (GPS) RWY 4, Orig.
31-Mar-16...............  AZ            Prescott...........  Ernest A Love Field       6/4364     02/08/16  RNAV (GPS) Y RWY 3R, Orig.
31-Mar-16...............  GA            Cairo..............  Cairo-Grady County.       6/4711     02/08/16  RNAV (GPS) RWY 13, Amdt 1A.
31-Mar-16...............  AZ            Prescott...........  Ernest A Love Field       6/4865     02/08/16  RNAV (GPS) RWY 12, Orig.
31-Mar-16...............  AZ            Prescott...........  Ernest A Love Field       6/4867     02/08/16  ILS OR LOC/DME RWY 21L, Amdt 4A.
31-Mar-16...............  AZ            Prescott...........  Ernest A Love Field       6/4868     02/08/16  RNAV (GPS) RWY 21L, Amdt 2A.
31-Mar-16...............  KY            Ashland............  Ashland Rgnl.......       6/5224     01/26/16  RNAV (GPS) RWY 28, Amdt 1B.
31-Mar-16...............  KY            Ashland............  Ashland Rgnl.......       6/5225     01/26/16  RNAV (GPS) RWY 10, Amdt 1B.
31-Mar-16...............  AZ            Kingman............  Kingman............       6/6420     01/28/16  VOR/DME RWY 21, Amdt 7A.
31-Mar-16...............  AZ            Kingman............  Kingman............       6/6421     01/28/16  RNAV (GPS) Y RWY 21, Orig-A.
31-Mar-16...............  AZ            Kingman............  Kingman............       6/6422     01/28/16  RNAV (GPS) RWY 3, Orig-A.
31-Mar-16...............  AZ            Kingman............  Kingman............       6/6423     01/28/16  RNAV (GPS) Z RWY 21, Orig-B.
31-Mar-16...............  UT            Moab...............  Canyonlands Field..       6/7780     02/03/16  RNAV (GPS) RWY 3, Orig.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2016-04213 Filed 2-26-16; 8:45 am]
BILLING CODE 4910-13-P


SECTION I. PART A OF THE SUPPORTING STATEMENT 1. IDENTIFICATION OF THE INFORMATION COLLECTION ( a) TITLE OF THE INFORMATION COLLECTION Information Requirements for Importation of Nonconforming Marine Engines, OMB # 2060 0320 ( b) SHORT CHARACTERIZATION ( ABSTRACT)

The Clean Air Act requires that motor vehicles and motor vehicle engines imported into the U. S. conform with applicable emission requirements. The Clean Air Act Amendments of 1990 extended these requirements to nonroad engines. This Information Collection Request ( ICR) includes outboard marine engines, personal watercraft, and non propulsion compression ignition engines used in marine applications ( all referred to as marine engines).

The Outreach and Planning Group ( OPG) in the Office of Air and Radiation collects information and requires some recordkeeping to help ensure that nonconforming engines are brought into compliance with Federal emission requirements, unless eligible for exemption or exclusion. Also, the information is used by the U. S. Customs Service ( Customs), State regulatory agencies, businesses, and individuals to verify whether or not engines are in compliance.

Information collected includes vehicle identification data and U. S. Customs entry statements that such information is correct. The information is either stored in a computer database, or retained in document form. The information is used to monitor compliance of imports and respond to inquiries from the public concerning the compliance status of specific imported engines.

a) EPA Form 3520 28. This form is used by importers who are applying for entry of marine engines. A simplified variant of this form, 3520 28a, may be completed by individuals importing outboard engines or personal watercraft for their own use. Form 3520 28 is a new form created to facilitate the collection of information that was originally included in form 3520 21, which is approved under OMB # 2060 0294.

b) EPA Form 3520 14. This form is used by importers wishing to make application to EPA for prior written approval in order to obtain an exemption or exclusion from bringing engines into compliance with Federal emission standards. This form was designed by EPA to give importers a guide as to what information they should submit and what exemption or exclusion they might be eligible for. Form 3520 14 is also approved under OMB # 2060 0095 and 2060 0294.

The information collection will involve 1,000 respondents at a cost of $ 77,500 dollars.

2. NEED FOR AND USE OF THE COLLECTION  2

( a) NEED/ AUTHORITY FOR THE COLLECTION Joint EPA and Customs regulations at 40 CFR 91.701 et seq. and 19 CFR 12.74 promulgated under the authority under the Clean Air Act ( Sections 203, 208 and 213) give authority for the collection of information. The collection of this information helps ensure the compliance of nonconforming engines with Federal emissions requirements which helps meet the Agency goal of reducing air pollution. Without this information, EPA could not confirm that engines being entered conform to the emission requirements and consequently, would not be able to allow entry of these engines.

( b) USE/ USERS OF THE DATA The Outreach and Planning Group ( OPG) receives the information either directly from the importers or indirectly from the importers through Customs. The information is used by Agency enforcement personnel to verify that all Federal emission requirements concerning imported nonconforming engines are met. The information is also used to identify and prosecute violators of the regulations and to monitor the program in achieving the objectives of the regulations.

3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA ( a) NONDUPLICATION A search of the Government Information Locator System ( GILS) found no other program or agency collecting this information. Because much of the information is so highly specific to the EPA Imports Program, the information would not be duplicated by other programs.

( b) PUBLIC NOTICE A Federal Register notice has been published, soliciting public comment for this ICR.

( c) CONSULTATIONS Consultations were made with engine manufacturers to discuss form revisions and to obtain accurate burden and cost estimates. The following manufacturers provided estimates:

Mercury Marine. Rep: Susan Bucheger Phone: ( 920) 929 4978 Yamaha Motor Corporation, U. S. A. Rep: Thomas Pugh Phone: ( 714) 761 7807  3

And the format and content of form 3520 28 was extensively discussed with the following industry representative.

Dawn Friest Engine Manufacturers Association Two North LaSalle Street Chicago, IL 60602 Phone: ( 312) 827 8700 ( d) EFFECTS OF LESS FREQUENT COLLECTION Since reporting is done only at the time of entry and compliance, the effects of less frequent collection would be to seriously undermine the Agency's ability to whether engines being imported meet applicable emission requirements. Consequently, the Agency would not be able to allow entry of engines being imported. Therefore, less frequent collection is not feasible.

( e) GENERAL GUIDELINES This ICR complies with all of OMB's guidelines, except that importers will be required to notify EPA when importing marine engines and this may for some importers result in reporting more often than quarterly. Because such reports are necessary to verify compliance with federal emission requirements at the time of entry, if EPA limited required reports to quarterly, either importers would only be able to import on a quarterly basis, or EPA would have to forego verification of compliance.

( f) CONFIDENTIALITY Any information submitted to the Agency for which a claim of confidentiality is made will be safeguarded according to policies set forth in Title 40, Chapter 1, Part 2, Subpart B  Confidentiality of Business Information ( see CFR 2). The public is not permitted access to information containing personal or organizational identifiers. This collection complies with the Privacy Act of 1974 and OMB Circular A 130.

( g) SENSITIVE QUESTIONS There are no sensitive questions asked.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED ( a) RESPONDENTS/ SIC CODES The Outreach and Planning Group ( OPG) collects information from individual importers and both small and large companies who import, or import and manufacture marine engines. The SIC codes for the respondents are 3731, 3732, 3799, 5088, and 5551.  4

( b) INFORMATION REQUESTED ( i) Data Items The data requested in reports include:

 engine identification number  engine make  engine model  model year of the engine  port of entry  date of entry  entry number  importer name, address and telephone number  owner name, address, telephone number and SSN or EIN  justification for an exclusion or exemption, if applicable ( ii) Respondent Activities To complete the collection, the respondent would:

 read form instructions  collect data and complete forms INFORMATION REQUIREMENTS FOR IMPORTATION OF NONCONFORMING MARINE ENGINES 40 CFR PART 91 SUBPART H INFORMATION REQUIREMENTS CITATION Notification of Conditional Admission 91.703 ( b)

Request for Prior Approval 91.704  5

INFORMATION REQUIREMENTS FOR IMPORTATION OF NONCONFORMING NON PROPULSION CI ENGINES 40 CFR PART 89 SUBPART G INFORMATION REQUIREMENTS CITATION Notification of Conditional Admission 89.604( a)

Request for Prior Approval 89.611 5. THE INFORMATION COLLECTED AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT ( a) AGENCY ACTIVITIES OPG receives the information as required from Customs, individuals and businesses. After receiving the information, EPA uses the information to determine whether engines meet EPA requirements and retains the information in order to respond to public, State government, and Federal government inquires.

( b) COLLECTION METHODOLOGY AND MANAGEMENT Both Customs and OPG use the information to determine if engines meet EPA requirements. OPG retains the information in a computer database or document form in order to respond to public, State government, and Federal government inquires, which are handled by OPG staff.

( c) SMALL ENTITY FLEXIBILITY Small entities which are required to submit certain information to EPA have been providing information to EPA by completing and submitting EPA forms. EPA endeavors to the maximum extent feasible, to allow small entities to submit the data electronically.

( d) COLLECTION SCHEDULE The information is not subject to a collection schedule, but is collected at the time of engine entry.  6

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION 6( a) ESTIMATING RESPONDENT BURDEN Marine engines Reporting Burden Burden Est. Est. # of Est. of forms/ yr Burden ( hrs) a) Form 3520 28/ 28a .5 3,000 1,500 c) Form 3520 14 .5 100 50 1,550 Reporting burden is based on consultations with nonroad manufacturers. Reporting for form 3520 28 is ordinarily accomplished through purchase of services from a broker who completes a package of importation forms ( including those of other agencies) and files them with Customs. The stated reporting burden incorporates a negligible recordkeeping burden for broker form retention indistinguishable from overall broker activities. Total annual burden for this collection is estimated at 1,550 hours.

6( b) ESTIMATING RESPONDENT COST Marine engines Costs: Estimated Capital/ Units Labor Start up O& M Reporting 3,100 forms $ 77,500 @$ 25 per form ( i) Labor Costs Forms are ordinarily submitted through purchase of services from brokers who complete forms and file them with Customs. Estimated labor costs for this ICR are therefore zero.

( ii) Capital/ Start up Costs Forms are ordinarily submitted through purchase of services from brokers who complete forms and file them with Customs. Estimated capital/ start up costs for this ICR are therefore zero.

( iii) Operations and Maintenance Costs  7

Operations and maintenance costs were calculated based on an average of responses received from the nonroad manufacturers contacted. The operations and maintenance cost for reporting ordinarily involves a purchase of services from brokers who complete a package of importation forms ( including those of other agencies) and file them with Customs. This cost is estimated as a component of overall broker activities to import an engine, and incorporates a negligible recordkeeping cost for broker form retention indistinguishable from overall broker activities. Estimated operations and maintenance costs total $ 77,500 for activities covered by this ICR.

6( c) ESTIMATING AGENCY BURDEN AND COST The Imports program is administered by EPA's Outreach & Planning Group ( OPG). Four Full Time Equivalent employees and three Senior Environmental Employment Program employees are allocated to all Imports activities, at an estimated total agency cost of $ 630,000 per year, including 110% overhead.

6( d) REASONS FOR CHANGE IN BURDEN No change in burden resulted from clarifying requirements and the types of engines to be declared on the form.

6( e) BURDEN STATEMENT Public reporting burden for this collection is estimated to average 30 minutes per response. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.

Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, OEI Collection Strategies Division, U. S. Environmental Protection Agency ( 2822), 1200 Pennsylvania Ave., N. W., Washington, DC 20460; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Include the EPA ICR number and OMB control number in any correspondence.


[Federal Register: December 12, 2005 (Volume 70, Number 237)]
[Notices]
[Page 73497-73500]
[DOCID:fr12de05-100]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52894; File No. SR-ISE-2005-45]

Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing and Order Granting Accelerated Approval to a
Proposed Rule Change and Amendment No. 1 Thereto Relating to the
Elimination of Position and Exercise Limits on NDX Options

December 5, 2005.
    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 21, 2005, the International Securities Exchange, Inc.
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the ISE. On
November 14, 2005, the ISE filed Amendment No. 1 to the proposed rule
change.\3\ The Commission is publishing this notice to solicit comments
on the proposed rule change, as amended, from interested persons. In
addition, the Commission is granting accelerated approval of the
proposed rule change, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1, which replaced and superseded the original
filing in its entirety, added certain reporting requirements and
margin provisions and expanded on the purpose of the proposed rule
change.
---------------------------------------------------------------------------

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

    The ISE proposes to amend its rules to eliminate position and
exercise limits for options on the Nasdaq 100 Index (``NDX''). The text
of the proposed rule change, as amended, is below. Proposed new
language is in italics; proposed deletions are in [brackets].
* * * * *

Rule 2004. Position Limits for Broad-Based Index Options

    (a) Rule 412 generally shall govern position limits for broad-based
index options, as modified by this Rule 2004. There may be no position
limit for certain Specified (as provided in Rule 2000) broad-based
index options contracts. All other broad-based index options contracts
shall be subject to a contract limitation fixed by the Exchange, which
shall not be larger than the limits provided in the chart below.

------------------------------------------------------------------------
                               Standard limit  (on
Broad-based underlying index  the same side of the      Restrictions
                                     market)
------------------------------------------------------------------------
S&P SmallCap 600 Index......  100,000 contracts...  No more than 60,000
                                                     near-term.
S&P MidCap 400 Index........  45,000 contracts....  No more than 25,000
                                                     near-term.
Reduced Value S&P 1000 Index  50,000 contracts....  No more than 30,000
                                                     near-term.
Micro S&P 1000 Index........  500,000 contracts...  No more than 300,000
                                                     near-term.
Nasdaq 100 Index............  None [75,000          None.
                               contracts].
Mini Nasdaq 100 Index.......  750,000 contracts...  None.
------------------------------------------------------------------------

    Remainder of the Chart--No Change.
* * * * *
    (b)-(d) No Change.
* * * * *

Rule 2006. Exemptions from Position Limits

    (a) Broad-based Index Hedge Exemption. The broad-based index hedge
exemption is in addition to the other exemptions available under
Exchange Rules, interpretations and policies. The following procedures
and criteria must be satisfied to qualify for a broad-based index hedge
exemption:
    (1)-(4) No Change.
    (5) Positions in broad-based index options that are traded on the
Exchange are exempt from the standard limits to the extent specified
below.

------------------------------------------------------------------------
                                             Broad-based index hedge
     Broad-based index option type        exemption  (is in addition to
                                                 standard limit)
------------------------------------------------------------------------
Nasdaq 100 Stock Index (\1/10\th value)  1,500,000 contracts.
 (MNX).
[Nasdaq 100 Stock Index (full value)     [150,000 contracts].
 (NDX)].
Other broad-based indexes..............  75,000.
------------------------------------------------------------------------

    (6)-(12) No Change.
    (13) Each member (other than Exchange market-makers) that maintains
a broad-based index option[s] position on the same side of the market
in excess of 100,000 contracts in NDX [a Specified (as provided in Rule
2000) number of contracts] for its own account or for the account of a
customer, shall report information as to whether the positions are
hedged and provide documentation as to how such contracts

are hedged, in the manner and form required by the Exchange. The
Exchange may impose other reporting requirements as well as the limit
at which the reporting requirement may be triggered.
    (14) Whenever the Exchange determines that additional margin is
warranted in light of the risks associated with an under-hedged NDX
options position[in Specified (as provided in Rule 2000) broad-based
indices], the Exchange may impose additional margin upon the account
maintaining such under-hedged position pursuant to its authority under
Rule 1204. The clearing firm carrying the account also will be subject
to capital charges under Rule 15c3-1 under the Exchange Act to the
extent of any margin deficiency resulting from the higher margin
requirements.
    (b) No Change.
* * * * *

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 had 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 eliminate position and exercise limits for
options on the NDX, a broad-based securities index. Under ISE Rule
2004, the current position and exercise limit for options on the NDX is
75,000 contracts on the same side of the market. Given the
institutional demand for options on the NDX, the Exchange believes the
current position and exercise limit of 75,000 contracts to be too low
and a deterrent to the successful trading of the product. Additionally,
the ISE believes that these limits for options on the NDX no longer
serve their stated purpose. The Commission has previously stated that:

    Since the inception of standardized options trading, the options
exchanges have had rules imposing limits on the aggregate number of
options contacts that a member or customer could hold or exercise.
These rules are intended to prevent the establishment of options
positions that can be used or might create incentives to manipulate
or disrupt the underlying market so as to benefit the options
position. In particular, position and exercise limits are designed
to minimize the potential for mini-manipulations and for corners or
squeezes of the underlying market. In addition such limits serve to
reduce the possibility for disruption of the options market itself,
especially in illiquid options classes.\4\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 39489 (December 24,
1997), 63 FR 276 (January 5, 1998).

    The Commission has previously granted relief from position and
exercise limits with respect to options on indexes that the ISE
believes are similar to the NDX without any adverse affects on the
market as a result.\5\ The Exchange believes that the circumstances and
considerations relied upon in approving the elimination of position and
exercise limits for options on the SPX, OEX, and DJX on the CBOE
equally apply to the Exchange's proposed rule change regarding position
and exercise limits for options on the NDX.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 44994 (October 26,
2001), 66 FR 55722 (November 2, 2001) (order granting permanent
approval to a Chicago Board Options Exchange, Incorporated
(``CBOE'') pilot program to eliminate position and exercise limits
for options on the S&P 500 Index (``SPX''), the S&P 100 Index
(``OEX''), and the Dow Jones Industrial Average (``DJX'')) (``SPX/
OEX/DJX Permanent Approval Order''). See also Securities Exchange
Act Release No. 40969 (January 22, 1999), 64 FR 4911 (February 1,
1999) (order approving the CBOE's original pilot program) (``SPX/
OEX/DJX Pilot Approval Order''). Telephone conversation between
Samir M. Patel, Assistant General Counsel, ISE, and Ira L.
Brandriss, Special Counsel, Division of Market Regulation,
Commission, on November 23, 2005 (``Telephone Conversation with
ISE'').
---------------------------------------------------------------------------

    In approving the elimination of position and exercise limits for
options on the SPX, OEX, and DJX, the Commission noted their active
trading volume and the deep, liquid markets for the securities
underlying the indexes, as well as their market capitalization.\6\ The
Exchange notes that the average daily trading volume (``ADTV'') of the
underlying components of and options on the NDX as well as the market
capitalization of the index are comparable to the ADTV and market
capitalization figures for SPX, OEX, and DJX. As of October 18, 2005,
the approximate market capitalizations of SPX, OEX and DJX were $10.87
trillion, $5.95 trillion and $3.53 trillion, respectively. The ADTVs
for all underlying components of the indexes were 1,825 million, 800
million, and 370 million shares, respectively, and the ADTV for options
on the indexes were 288,644 contracts, 74,725 contracts, and 22,282
contracts, respectively.\7\ The market capitalization of the NDX was
$1.82 trillion, the ADTV for the underlying securities of the index was
716 million shares, and the options ADTV was 51,661 contracts.
---------------------------------------------------------------------------

    \6\ See SPX/OEX/DJX Pilot and Permanent Approval Orders.
Telephone Conversation with ISE.
    \7\ ADTVs are calculated over the previous three months of
trading.
---------------------------------------------------------------------------

    Additionally, in approving the elimination of position and exercise
limits for options on the SPX, OEX, and DJX, the Commission also noted
the financial requirements imposed by both the CBOE and the Commission
in an effort to guard against a CBOE member or its customer(s) from
maintaining a large unhedged position in those securities. The Exchange
believes that the current financial requirements imposed by the ISE and
by the Commission adequately address concerns that a member or its
customer may try to maintain an inordinately large unhedged position in
NDX options. The Exchange notes that, under its rules, it has the
authority to impose additional margin upon accounts maintaining
underhedged positions,\8\ and is further able to monitor accounts to
determine when such action is warranted. As noted in the Exchange's
rules, the clearing firm carrying such an account would be subject to
capital charges under Rule 15c3-1 under the Act \9\ to the extent of
any resulting margin deficiency.\10\ It also should be noted that the
Exchange has the authority under ISE Rule 1204 to impose higher margin
requirements upon a member when the Exchange determines that higher
requirements are warranted. Additionally, ISE Rule 415, which requires
members to file reports with the Exchange for any customer who held
aggregate long or short positions of 200 or more option contracts of
any single class for the previous day, will remain unchanged and will
continue to serve as an important part of the Exchange's surveillance
efforts.
---------------------------------------------------------------------------

    \8\ See, e.g. Commentary .02 to ISE Rule 412.
    \9\ See 17 CFR 240.15c3-1.
    \10\ See also the proposed change to ISE Rule 2006(a)(14), to
include a specific reference to options on the NDX. Telephone
Conversation with ISE.
---------------------------------------------------------------------------

    Finally, in approving the elimination of position and exercise
limits for options on the SPX, OEX, and DJX, the Commission relied on
the CBOE's ability to provide surveillance and reporting safeguards to
detect and deter trading abuses that could arise from the elimination
of position and exercise limits in those securities. The Exchange
believes that the updated surveillance procedures and reporting
requirements

at the ISE,\11\ coupled with the surveillance procedures and reporting
requirements of the other options exchanges, are capable of properly
identifying unusual and/or illegal trading activity. These procedures
utilize daily monitoring of market movements via automated surveillance
techniques to identify unusual activity in both options and in
underlying stocks. Additionally, the Exchange intends to impose a
reporting requirement on ISE members (other than Exchange market-
makers) who trade NDX options.\12\ This reporting requirement would
require Exchange members who maintain in excess of 100,000 NDX
contracts on the same side of the market, for their own accounts or for
the account of customers, to report information as to whether the
positions are hedged and provide documentation as to how such contracts
are hedged, in a manner and form required by the Exchange.\13\ The
Exchange also would be permitted to specify other reporting
requirements, as well as the limit at which the reporting requirement
may be triggered.\14\
---------------------------------------------------------------------------

    \11\ The Exchange has separately submitted, on a confidential
basis, updated surveillance procedures regarding trading in NDX
options.
    \12\ ISE does not currently trade options on any security for
which there are no position and exercise limits. As such, the
Exchange has never imposed this reporting requirement on its
members. The Exchange will issue a Regulatory Information Circular
to its members informing them of the elimination of position and
exercise limits for options on the NDX and the resulting reporting
requirement.
    \13\ See proposed changes to ISE Rule 2006(a)(13).
    \14\ Id.
---------------------------------------------------------------------------

    The Exchange believes that eliminating position and exercise limits
for NDX options will allow ISE members and their customers greater
hedging and investment opportunities.
2. Statutory Basis
    The ISE believes the proposed rule change is consistent with
Section 6(b) of the Act,\15\ in general, and furthers the objectives of
Section 6(b)(5),\16\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \15\ U.S.C. 78f(b).
    \16\ U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The ISE believes that the proposed rule change does not impose any
burden on competition that is not necessary or appropriate in the
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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

III. Solicitation of Comments

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

Electronic Comments

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

File Number SR-ISE-2005-45 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-ISE-2005-45. 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 Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the ISE. 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 publicly available. All
submissions should refer to File Number SR-ISE-2005-45 and should be
submitted on or before January 3, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of
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.\17\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\18\ which
requires, among other things, that the rules of the Exchange be
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------

    \17\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
    \18\ 15 U.S.C. 78f(b)(5).
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    Since the inception of standardized options trading, the options
exchanges have had rules imposing limits on the aggregate number of
options contracts that a member or customer could hold or exercise.
These rules are intended to prevent the establishment of options
positions that can be used or might create incentives to manipulate or
disrupt the underlying market so as to benefit the options position,
and to reduce the possibility for the disruption of the options market
itself.
    The Commission notes that it continues to believe that the
fundamental purposes of position and exercise limits remain valid.
Nevertheless, the Commission believes that experience with the trading
of index options as well as enhanced reporting requirements and
exchange surveillance capabilities make it possible to approve the
elimination of position and exercise limits on certain broad-based
index options. Thus, in 2001, the Commission approved a CBOE proposal
to eliminate permanently position and exercise limits for options on
the SPX, OEX, and DJX,\19\ and in 2002 approved a proposal by the
American Stock Exchange LLC (``Amex'') to eliminate permanently
position and exercise limits for options on the Major Market Index
(``XMI'') and the Institutional Index (``XII''). Recently the
Commission also approved proposals by the CBOE and the Amex to
eliminate position and exercise limits for options on the NDX trading
on those

exchanges.\20\ The Commission believes that the considerations upon
which it relied in approving those proposals equally apply with respect
to the instant proposed rule change by the ISE.
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    \19\ See SPX/OEX/DJX Permanent Approval Order, supra note 5.
    \20\ See Securities Exchange Act Release Nos. 52650 (October 21,
2005), 70 FR 62147 (October 28, 2005) (order approving File No. SR-
CBOE-2005-41); and 52649 (October 21, 2005), 70 FR 62146 (October
28, 2005) (order approving File No. SR-Amex-2005-063) (``CBOE and
Amex NDX Approval Orders'').
---------------------------------------------------------------------------

    As noted by the Exchange, the market capitalization of the NDX as
of October 18, 2005 was $1.82 trillion. The ADTV for a period of three
months prior to that date for all underlying components of the index
was 716 million shares. As it stated in the CBOE and Amex NDX Approval
Orders, the Commission believes that the enormous market capitalization
of the NDX and the deep, liquid markets for the underlying component
securities significantly reduce concerns regarding market manipulation
or disruption in the underlying market. Removing position and exercise
limits for NDX options may also bring additional depth and liquidity,
in terms of both volume and open interest, to NDX options without
significantly increasing concerns regarding intermarket manipulation or
disruption of the options or the underlying securities.
    In addition, the Commission believes that financial requirements
imposed by both the Exchange and the Commission adequately address
concerns that a ISE member or its customer may try to maintain an
inordinately large unhedged position in NDX options. Current risk-based
haircut and margin methodologies serve to limit the size of positions
maintained by any one account by increasing the margin and/or capital
that a member must maintain for a large position held by itself or by
its customer.\21\ As specified in the proposal, the ISE also would have
the authority under its rules to impose a higher margin requirement
upon an account maintaining an under-hedged position in NDX options
when it determines a higher requirement is warranted. As also noted in
the applicable ISE rules, the clearing firm carrying the account would
be subject to capital charges under Rule 15c3-1 under the Act to the
extent of any margin deficiency resulting from the higher margin
requirement.
---------------------------------------------------------------------------

    \21\ See SPX/OEX/DJX Pilot Approval Order, supra note 5.
---------------------------------------------------------------------------

    Finally, in approving the elimination of position and exercise
limits for options on the indexes noted above, the Commission took note
of the enhanced surveillance and reporting safeguards that the relevant
exchange had adopted to allow it to detect and deter trading abuses
that might arise as a result.\22\ The ISE's updated safeguards,
including the 100,000-contract reporting requirement described above,
would allow the ISE to monitor large positions in order to identify
instances of potential risk and to assess and respond to any market
concerns at an early stage. In this regard, the Commission expects the
ISE to take prompt action, including timely communication with the
Commission and other marketplace self-regulatory organizations
responsible for oversight of trading in component stocks, should any
unanticipated adverse market effects develop. Moreover, as previously
noted, the Exchange has the flexibility to specify other reporting
requirements, as well as to vary the limit at which the reporting
requirements may be triggered.
---------------------------------------------------------------------------

    \22\ See, in particular, SPX/OEX/DJX Pilot Approval Order, supra
note 5.
---------------------------------------------------------------------------

    The ISE has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after
publication of notice thereof in the Federal Register. As already
noted, the Commission recently approved similar proposals eliminating
position and exercise limits for NDX options on the CBOE and the Amex.
The Commission believes that granting accelerated approval of the
proposal will allow the ISE to conform its rules to those of other
exchanges trading NDX options without delay. Accordingly, the
Commission finds good cause, pursuant to Section 19(b)(2) of the
Act,\23\ for approving the proposed rule change, as amended, prior to
the thirtieth day after the date of publication of notice thereof in
the Federal Register.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\24\ that the proposed rule change (SR-ISE-2005-45), as amended,
be, and hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
 [FR Doc. E5-7187 Filed 12-9-05; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62893-62896]
[FR Doc No: 2013-24678]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70689; File No. SR-NSCC-2013-802]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing Amendment No. 3 to Advance Notice, as
Previously Modified by Amendment Nos. 1 and 2, To Institute
Supplemental Liquidity Deposits to Its Clearing Fund Designed To
Increase Liquidity Resources To Meet Its Liquidity Needs

October 15, 2013.
    On March 21, 2013, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') advance notice SR-NSCC-2013-802 (``Advance Notice'')
pursuant to Section 806(e)(1) of the Payment, Clearing, and Settlement
Supervision Act of 2010 (``Clearing Supervision Act'') \1\ and Rule
19b-4(n)(1)(i) \2\ thereunder.\3\ On April 19, 2013, NSCC filed with
the Commission Amendment No. 1 to the Advance Notice, which the
Commission published for comment in the Federal Register on May 1,
2013.\4\ On May 20, 2013, the Commission extended the period of review
of the Advance Notice, as modified by Amendment No. 1.\5\ On June 11,
2013, NSCC filed with the Commission Amendment No. 2 to the Advance
Notice, as previously modified by Amendment No. 1, which the Commission
published for comment in the Federal Register on July 15, 2013.\6\ As
of October 15, 2013, the Commission had received 22 comment letters on
the proposal contained in the Advance Notice and its related Proposed
Rule Change,\7\ including NSCC's two responses to the comment letters
received as of August 20, 2013.\8\
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ NSCC also filed the proposal contained in the Advance Notice
as proposed rule change SR-NSCC-2013-02 (``Proposed Rule Change'')
under Section 19(b)(1) of the Securities and Exchange Act of 1934
(``Exchange Act'') and Rule 19b-4 thereunder. Release No. 34-69313
(Apr. 4, 2013), 78 FR 21487 (Apr. 10, 2013). On April 19, 2013, NSCC
filed Amendment No. 1 to the Proposed Rule Change, which, on May 22,
2013, the Commission published notice of and designated a longer
period of review for Commission action on the Proposed Rule Change,
as modified by Amendment No. 1. Release No. 34-69620 (May 22, 2013),
78 FR 32292 (May 29, 2013). On June 11, 2013, NSCC filed Amendment
No. 2 to the Proposed Rule Change, which the Commission published
notice of with an order instituting proceedings to determine whether
to approve or disapprove the Proposed Rule Change (``Order
Instituting Proceedings''). Release No. 34-69951 (Jul. 9, 2013), 78
FR 42140 (Jul. 15, 2013). On September 25, 2013, the Commission
designated a longer period of review for Commission action on the
Order Instituting Proceedings. Release No. 34-70501 (Sep. 25, 2013),
78 FR 60347 (Oct. 1, 2013). On October 7, 2013, NSCC filed Amendment
No. 3 to the Proposed Rule Change, of which the Commission published
notice. Release No. 34-70688 (Oct. 15, 2013). The proposal in the
Advance Notice, as amended, and the Proposed Rule Change, as
amended, shall not take effect until all regulatory actions required
with respect to the proposal are completed.
    \4\ Release No. 34-69451 (Apr. 25, 2013), 78 FR 25496 (May 1,
2013).
    \5\ Release No. 34-69605 (May 20, 2013), 78 FR 31616 (May 24,
2013).
    \6\ Release No. 34-69954 (Jul. 9, 2013), 78 FR 42127 (Jul. 15,
2013).
    \7\ See Comments Received on File Nos. SR-NSCC-2013-02 (http://sec.gov/comments/sr-nscc-2013-02/nscc201302.shtml) and SR-NSCC-2013-
802 (http://sec.gov/comments/sr-nscc-2013-802/nscc2013802.shtml).
Since the proposal contained in the Advance Notice was also filed as
a Proposed Rule Change, see Release No. 34-69313, supra note 3, the
Commission is considering all public comments received on the
proposal regardless of whether the comments are submitted to the
Advance Notice, as amended, or the Proposed Rule Change, as amended.
    \8\ NSCC also received a comment letter directly prior to filing
the Advance Notice and related Proposed Rule Change with the
Commission, which NSCC provided to the Commission in Amendment No. 1
to the filings. See Exhibit 2 to File No. SR-NSCC-2013-802 (http://sec.gov/rules/sro/nscc/2013/34-69451-ex2.pdf).

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    Pursuant to Section 806(e)(1) of the Clearing Supervision Act \9\
and Rule 19b-4(n)(1)(i) \10\ thereunder, notice is hereby given that on
October 4, 2013, NSCC filed with the Commission Amendment No. 3 to the
Advance Notice, as previously modified by Amendment Nos. 1 and 2, as
described in Item I, II and III below, which Items have been prepared
primarily by NSCC. The Commission is publishing this notice to solicit
comments on the Advance Notice, as modified by Amendment No. 3, from
interested persons.\11\
---------------------------------------------------------------------------

    \9\ 12 U.S.C. 5465(e)(1).
    \10\ 17 CFR 240.19b-4(n)(1)(i).
    \11\ Defined terms that are not defined in this notice are
defined in Amended Exhibit 5 to the Advance Notice, available at
http://sec.gov/rules/sro/nscc.shtml, under File No. SR-NSCC-2013-
802, Additional Materials.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    The Advance Notice, as modified by Amendments No. 1, No. 2, and No.
3, is a proposal by NSCC to amend its Rules & Procedures (the ``NSCC
Rules'') to provide for supplemental liquidity deposits to its Clearing
Fund (the ``NSCC Clearing Fund'') to ensure that NSCC has adequate
liquidity resources to meet its liquidity needs (the ``SLD Proposal''
or sometimes the ``Proposal''), as described below. NSCC filed
Amendment No. 3 (this ``Amendment'') to the Advance Notice, as
previously modified by Amendment No. 1 and No. 2, in order to delete
the provisions in the proposed Rule relating to Regular Activity
Liquidity Obligations (as defined), to respond to concerns raised by
Members. As a result the Proposal, as revised, would impose
supplemental liquidity obligations on affected Members only with
respect to activity relating to monthly options expiry periods (defined
in the proposed Rule as ``Special Activity Liquidity Obligations'').

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

    In its filing with the Commission, NSCC included statements
concerning the purpose of and basis for the Advance Notice, as modified
by Amendment No. 3, and discussed any comments it received on the
Advance Notice. The text of these statements may be examined at the
places specified in Item IV below. NSCC has prepared summaries, set
forth in sections A, B, and C below, of the most significant aspects of
such statements.

(A) Advance Notice Filed Pursuant to Section 806(e) of the Payment,
Clearing and Settlement Supervision Act

1. Description of Change
Existing Proposal
    As noted in the original proposal contained in the Advance Notice,
as modified by Amendments No. 1 and No. 2, the SLD Proposal would
modify the NSCC Rules to add a new Rule 4(A), to establish a
supplemental liquidity funding obligation designed to cover the
liquidity exposure attributable to those Members and families of
affiliated Members (``Affiliated Families'') that regularly incur the
largest gross settlement debits over a settlement cycle during both
times of normal trading activity (``Regular Activity Periods'') and
times of increased trading and settlement activity that arise around
monthly options expiration dates (``Options Expiration Activity
Periods'').
    Under the existing Proposal, the Liquidity Obligation of a Member
or Affiliated Family with respect to a Regular Activity Period (a
``Regular Activity Liquidity Obligation'') or an Options Expiration
Activity Period (a ``Special Activity Liquidity Obligation'') would be
imposed on the 30 Members or Affiliated Families who generate the
largest aggregate liquidity needs over a settlement cycle that would
apply in the event of a closeout (that is, over a period from date of
default through the following three settlement days), based upon an
historical look-back period. The calculations for both the Regular
Activity Liquidity Obligation and the Special Activity Liquidity
Obligation were designed so that NSCC has adequate liquidity resources
to enable it to settle transactions, notwithstanding the default of one
of these 30 largest Members or Affiliated Families during Regular
Activity Periods, as well as during Options Expiration Activity
Periods. The liquidity obligations imposed on Members of Affiliated
Families would be apportioned among the Members in that Affiliated
Family in proportion to the liquidity risk (or peak exposure) they
present to NSCC. The Regular Activity Liquidity Obligation of an
Unaffiliated Member or Affiliated Family that has a Regular Activity
Liquidity Obligation (a Regular Activity Liquidity Provider) is
satisfied by such Regular Activity Liquidity Provider making a Regular
Activity Supplemental Deposit to the Clearing Fund in the amount of its
Regular Activity Liquidity Obligation, offset by (i) the total amount
(if any) if its commitment and the commitment of its ``Designated
Lender'' under NSCC's committed line of credit (the ``Credit
Facility'') and (ii) a share of the unallocated commitments of other
lenders under the Credit Facility.
    The cash deposit in respect of a Special Activity Liquidity
Obligation (a ``Special Activity Supplemental Deposit'') is structured
in the existing SLD Proposal to address any additional liquidity
shortfalls (over and above NSCC's other available liquidity resources)
that arise during the heightened activity period around monthly options
expiration. As such, these additional Special Activity Supplemental
Deposits would be required to be maintained on deposit with NSCC only
through the completion of the related settlement cycle and for a few
days thereafter.
Objections From Commenters
    The key concerns raised by commenters with respect to the existing
SLD Proposal were as follows:
    First, commenters claimed that Members were not sufficiently
consulted or involved during the development of the Proposal (even
though NSCC management conducted significant Member outreach), so that
the Proposal lacked input that could have potentially resulted in a
less burdensome approach.
    Second, commenters claimed that the Proposal was anticompetitive or
discriminatory because the obligation to provide supplemental liquidity
was imposed on only the 30 largest Unaffiliated Members or Affiliated
Families (even though those Members collectively represent
approximately 85% of NSCC's total membership by peak liquidity needs),
rather than all Members of NSCC. This concern was raised in the context
of Regular Activity Supplemental Deposits.
    Third, commenters claimed that the existing Proposal was
anticompetitive or discriminatory because, with respect to Regular
Activity Supplemental Deposits, it gave a dollar for dollar credit for
commitments made by Regular Activity Liquidity Providers or their
Designated Lenders under the Credit Facility--supposedly favoring
Regular Activity Liquidity Providers with affiliated banks.
    NSCC believes that the proposed amendments and items described
below address or mitigate all of these concerns.
Proposed Amendments
    NSCC is proposing to amend the existing SLD Proposal by removing
those provisions that, collectively, deal with the imposition of
Regular Activity Liquidity Obligations, while

maintaining the provisions relating to Special Activity Liquidity
Obligations. The proposed Rule, as so revised, would thus impose only
Special Activity Liquidity Obligations with respect to the heightened
activity of Options Expiration Activity Periods (that is, the four days
beginning with the Friday that precedes the monthly expiration date for
stock options, and ending on the third settlement day following). Under
the revised Proposal, as under the existing Proposal as it relates to
Special Activity Liquidity Obligations, only those Unaffiliated Members
or Affiliated Families among the top 30 whose activity during monthly
Options Expiration Activity Periods generate liquidity needs in excess
of NSCC's then available liquidity resources will be obligated to fund
such additional amounts. That is, the allocation formula ratably
applies the additional amount needed during the relevant Options
Expiration Activity Period based upon the affected Member's Special
Activity Peak Liquidity Exposure. To the extent that a Member's Special
Activity Peak Liquidity Exposure is less than or equal to NSCC's then
available liquidity resources, its share of the Special Activity Peak
Liquidity Need will be zero.
    In addition, under the revised SLD Proposal, as under the existing
Proposal as it relates to Special Activity Liquidity Obligations,
Unaffiliated Members and Affiliated Families, will be able to manage
their exposures by making Special Activities Prefund Deposits where
they project their own activity will increase their liquidity exposure.
For example, if a Special Activity Liquidity Provider anticipates that
its Special Activity Peak Liquidity Exposure at any time during a
particular Options Expiration Activity Period will be greater than the
amount calculated by NSCC, it can make an additional cash deposit to
the Clearing Fund (in excess of its Required Deposit) that it
designates as a ``Special Activity Prefund Deposit.'' However, to the
extent that a Member fails to adequately prefund its activity, it may
be subject to a Special Activity Liquidity Call in the same manner as
provided in the existing Proposal.
    With these changes, NSCC is removing those provisions of the
existing SLD Proposal that generated most concern from commenters,
while retaining those provisions that enable NSCC to collect additional
liquidity resources to cover the heightened liquidity needs that arise
during monthly Options Expiration Activity Periods. Every Unaffiliated
Member and Affiliated Family among the top 30 whose activity causes a
liquidity need in excess of NSCC's available liquidity resources will
contribute ratably to such shortfall, so the Proposal fairly and
equitably apportions the obligation among those Unaffiliated Members
and Affiliated Families whose activity cause the need. The removal of
those provisions relating to how commitments under the Credit Facility
would be credited against the cash deposit obligations of Regular
Activity Liquidity Providers render concerns about such allocation
moot.
    As indicated in NSCC's August 20, 2013 letter to the Commission,
DTCC is separately establishing a standing member-based advisory group,
the Clearing Agency Liquidity Council (``CALC''), as a forum for the
discussion of liquidity and liquidity-related financing needs and
trends. The CALC will initially focus on liquidity initiatives
currently being considered by NSCC to address liquidity funding during
periods of normal activity, including issues raised by commenters on
the existing SLD Proposal. In response to commenters' more general
concerns regarding NSCC's reliance on the Credit Facility and related
refinancing risk, NSCC will review with the CALC the financing options
available to NSCC to supplement the Clearing Fund as a liquidity
resource, and the related costs of those options. Any new initiatives
proposed as a result of the CALC review that require regulatory
approval will be addressed in a separate filing.
    Reporting. As noted in the previous amendment to the Advance
Notice, NSCC agrees that Members have to be able to plan for their
liquidity obligations. At the same time, NSCC also believes it is
critical that Members understand the risks that their own activity
presents to NSCC, and be prepared to monitor their activity and alter
their behavior if they want to minimize the liquidity risk they present
to NSCC. Accordingly, NSCC will make available to each Member a daily
report showing the amount of liquidity NSCC would need in the event of
the default of such Member. Separately, NSCC will provide, and continue
to discuss with Special Activity Liquidity Providers, the reports
regarding their Special Activity Liquidity Obligations as currently
provided in the proposed Rule.
    Finally, the amendment makes certain technical corrections and
clarifies the time period for when Special Activity Liquidity Calls
must be satisfied.
    Implementation Timeframe. The SLD Proposal will be implemented on
February 1, 2014. As a result, the first time that Members will be
obligated to fund any Special Activity Supplemental Deposits will be
for the Options Expiration Activity Period in February 2014. NSCC Risk
staff will provide to affected Members their Special Activity Peak
Liquidity Exposures for the relevant Special Activity Lookback Period
by no later than January 15, 2014.
2. Anticipated Effect on Management of Risk
    As described in above, NSCC is proposing to amend the Advance
Notice to address concerns raised by commenters, by removing provisions
relating to Regular Activity Liquidity Obligations, while maintaining
provisions relating to Special Activity Liquidity Obligations. NSCC
believes that the SLD Proposal, as amended hereby, has been designed to
mitigate any unintended impact on competition that may have been
perceived by the existing SLD Proposal, while ameliorating liquidity
risk by providing NSCC with a mechanism to cover peak liquidity needs
relating to options expiry periods.

(B) Comments on Competition

    NSCC believes that the revised SLD Proposal will not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Securities and Exchange Act of 1934,
as amended (``Exchange Act''). The Special Activity Liquidity
Obligations imposed on Special Activity Liquidity Providers will ensure
that all Unaffiliated Members and Affiliated Families whose activity
present liquidity exposure to NSCC during periods of heightened
activity during Options Expiration Activity Periods fairly and
equitably contribute to NSCC's liquidity resources for settlement. NSCC
believes the changes that have been made to the existing Proposal fully
address the concerns raised by commenters, and eliminate any impact
that the SLD Proposal might have on competition. To the extent there
remains any perceived burden on competition caused by the Proposal,
NSCC believes that such burden is not unreasonable or inappropriate to
prevent systemic risk given that the Proposal contributes to the goal
of financial stability in the event of Member default.

(C) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants, or Others

    Written comments on the Advance Notice, including NSCC's formal
response to the written comments, have

been filed with the Commission and are available on the Commission's
Web site.

III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

    The clearing agency may implement the proposed change pursuant to
Section 806(e)(1)(G) of the Clearing Supervision Act \12\ if it has not
received an objection to the proposed change within 60 days of the
later of (i) the date that the Commission received the advance notice
or (ii) the date the Commission receives any further information it
requested for consideration of the notice. The clearing agency shall
not implement the proposed change if the Commission has any objection
to the proposed change.
---------------------------------------------------------------------------

    \12\ 12 U.S.C. 5465(e)(1)(G).
---------------------------------------------------------------------------

    The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing the clearing agency with prompt written notice
of the extension. A proposed change may be implemented in less than 60
days from the date of receipt of the advance notice, or the date the
Commission receives any further information it requested, if the
Commission notifies the clearing agency in writing that it does not
object to the proposed change and authorizes the clearing agency to
implement the proposed change on an earlier date, subject to any
conditions imposed by the Commission. The clearing agency shall post
notice on its Web site of proposed changes that are implemented.
    The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the Advance
Notice, as modified by Amendment No. 3, is consistent with the Clearing
Supervision 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 No. SR-NSCC-2013-802 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-NSCC-2013-802. 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 Advance Notice, as amended, that
are filed with the Commission, and all written communications relating
to the Advance Notice, as amended, 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 filings
also will be available for inspection and copying at the principal
office of NSCC and on NSCC's Web site at http://dtcc.com/legal/rule_filings/nscc/2013.php. 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 No. SR-
NSCC-2013-802 and should be submitted on or before November 5, 2013.

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24678 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P