[Federal Register: November 20, 2006 (Volume 71, Number 223)]
[Notices]
[Page 67179-67183]
[DOCID:fr20no06-101]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54742; File No. SR-NASD-2006-122]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Modify Pricing for NASD Members Using ITS/CAES, Brut,
and Inet

November 13, 2006.
    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 November 1, 2006, the National Association of Securities Dealers,
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by Nasdaq.
Nasdaq filed the proposed rule change pursuant to Section
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Nasdaq proposes to modify the pricing for NASD members using the
ITS/CAES System and the Brut and Inet facilities (collectively, the
``Nasdaq Facilities''). Nasdaq states that it will implement this rule
change on November 1, 2006. As indicated in the rule text, portions of
the rule change would be in effect on a pilot basis, beginning November
1, 2006 and continuing through November 30, 2006.

The text of the proposed rule change is set forth below. Proposed new
language is in italics; proposed deletions are in [brackets].\5\
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    \5\ Nasdaq states that changes are marked to the rule text that
appears in the electronic NASD Manual found at http://www.nasd.com,

as further amended on an immediately effective basis by File No. SR-
NASD-2006-116. See Securities Exchange Act Release No. 54695
(November 2, 2006), 71 FR 65862 (November 9, 2006).
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7010. System Services

    (a)-(h) No change.
    (i) ITS/CAES System, Brut, and Inet Order Execution and Routing
    (1) The following charges shall apply to the use of the order
execution and routing services of the ITS/CAES System, Brut, and Inet
(the ``Nasdaq Facilities'') by members for all Exchange-Traded Funds
that are not listed on The NASDAQ Stock Market LLC. The term
``Exchange-Traded Funds'' shall mean Portfolio Depository Receipts,
Index Fund Shares, and Trust Issued Receipts as such terms are defined
in Rule 4420(i), (j), and (l), respectively, of The NASDAQ Stock Market
LLC. For purposes of determining a member's volume in all securities
under Rule 7010(i), the term ``Nasdaq Facilities'' shall also be deemed
to include the member's volume in Nasdaq-listed securities through the
facilities of The NASDAQ Stock Market LLC.

                             Order Execution
------------------------------------------------------------------------

------------------------------------------------------------------------
Order that accesses the Quote/Order of
 a market participant that does not
 charge an access fee to market
 participants accessing its Quotes/
 Orders through the Nasdaq Facilities:
Charge to member entering order:
Members with an average daily volume     $0.0028 per share executed (or,
 through the Nasdaq Facilities in all     in the case of executions
 securities during the month of (i)       against Quotes/Orders at less
 more than 30 million shares of           than $1.00 per share, 0.1% of
 liquidity provided, and (ii) more than   the total transaction cost).
 50 million shares of liquidity
 accessed and/or routed; or members
 with an average daily volume through
 the Nasdaq Facilities in all
 securities during the month of (i)
 More than 20 million shares of
 liquidity provided, and (ii) more than
 60 million shares of liquidity
 accessed and/or routed.
Other members..........................  $0.0030 per share executed (or,
                                          in the case of executions
                                          against Quotes/Orders at less
                                          than $1.00 per share, 0.1% of
                                          the total transaction cost).
Credit to member providing liquidity:
Members with an average daily volume     $0.0025 per share executed (or
 through the Nasdaq Facilities in all     $0, in the case of executions
 securities during the month of more      against Quotes/Orders at less
 than 30 million shares of liquidity      than $1.00 per share).
 provided.
Other members..........................  $0.0020 per share executed (or
                                          $0, in the case of executions
                                          against Quotes/Orders at less
                                          than $1.00 per share).
Order that accesses the Quote/Order of
 a market participant that charges an
 access fee to market participants
 accessing its Quotes/Orders through
 the Nasdaq Facilities:
Charge to member entering order:
Members with an average daily volume     $0.001 per share executed (but
 through the Nasdaq Facilities in all     no more than $10,000 per
 securities during the month of more      month).
 than 500,000 shares of liquidity
 provided.
Other members..........................  $0.001 per share executed.
------------------------------------------------------------------------

      Order Routing for Exchange-Traded Funds Not Listed on Nasdaq
------------------------------------------------------------------------

------------------------------------------------------------------------
Order routed to the New York Stock       See [DOT] NYSE fee schedule in
 Exchange (``NYSE'') [through its DOT     Rule 7010(i)(7).
 system].
[Any other order entered by a member     [$0.004 per share executed].
 that is routed outside of the Nasdaq
 Facilities and that does not attempt
 to execute in the Nasdaq Facilities
 prior to routing].
Order routed to the American Stock       $0.003 per share executed
 Exchange (``Amex'') [after attempting    (plus, in the case of orders
 to execute in the Nasdaq Facilities].    charged a fee by the Amex
                                          specialist, $0.01 per share
                                          executed).
[Order routed through the Intermarket    [$0.0028 per share executed].
 Trading System (``ITS'') to NYSE Arca
 after attempting to execute in the
 Nasdaq Facilities].
[Any other order routed through the      [$0.0007 per share executed].
 Intermarket Trading System (``ITS'')
 after attempting to execute in the
 Nasdaq Facilities].
[Any]All other orders [routed after      $0.003 per share executed.
 attempting to execute in the Nasdaq
 Facilities].
------------------------------------------------------------------------

    (2)-(5) No change.
    (6) Except as provided in paragraph (7), the following charges
shall apply to the use of the order execution and routing services of
the Nasdaq Facilities by members for securities subject to the
Consolidated Quotations Service and Consolidated Tape Association plans
other than Exchange-Traded Funds (``Covered Securities''):

                             Order Execution
------------------------------------------------------------------------

------------------------------------------------------------------------
Order that accesses the Quote/Order of a
 Nasdaq Facility market participant:
Charge to member entering order:            [$0.0007 per share executed]
On or after December 1, 2006..............  $0.0007 per share executed.
For a pilot period during the month of
 November 2006:
Members with an average daily volume        $0.0007 per share executed.
 through the Nasdaq Facilities in Covered
 Securities during the month of (i) more
 than 100,000 shares of liquidity
 provided, and (ii) more than 100,000
 shares of liquidity accessed and/or
 routed.
Members with an average daily volume        $0.001 per share executed.
 through the Nasdaq Facilities in Covered
 Securities during the month of (i)
 between 50,000 and 100,000 shares of
 liquidity provided, and (ii) between
 50,000 and 100,000 shares of liquidity
 accessed and/or routed.
Other members.............................  $0.0015 per share executed.
Credit to member providing liquidity for a  $0.0007 per share executed.
 Covered Security listed on NYSE and The
 NASDAQ Stock Market LLC:
Credit to a member providing liquidity for
 other Covered Securities:
Members with an average daily volume        $0.0005 per share executed.
 through the Nasdaq Facilities in Covered
 Securities during the month of more than
 5 million shares of liquidity accessed,
 provided, or routed.
Members with an average daily volume        $0.0006 per share executed.
 through the Nasdaq Facilities in Covered
 Securities during the month of 10 million
 or more shares of liquidity provided.
Other members.............................  No credit.
------------------------------------------------------------------------

                              Order Routing
------------------------------------------------------------------------

------------------------------------------------------------------------
Order routed to Amex...................  $[0.003]$0.0028 per share
                                          executed (plus, in the case of
                                          orders charged a fee by the
                                          Amex specialist, $0.01 per
                                          share executed).
Order routed to NYSE...................  See [DOT] NYSE fee schedule in
                                          Rule 7010(i)(7).
[Order routed to NYSE Arca] All other    $0.0028 per share executed.
 orders.
[Order for NYSE-listed Covered Security  [$0.001 per share executed]
 routed to venue other than the NYSE,
 Amex, or NYSE Arca].
[Order for Covered Security listed on    [$0.003 per share executed]
 venue other than the NYSE and routed
 to venue other than Amex, NYSE, or
 NYSE Arca].
[Order routed through the ITS to NYSE    [$0.0028 per share executed]
 Arca].
[Any other order routed through the      [$0.0007 per share executed]
 ITS].
------------------------------------------------------------------------

    (7) The following charges shall apply to the use of the Nasdaq
Facilities by members for routing to the NYSE [through its DOT system]
for all securities, including Exchange-Traded Funds:

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

------------------------------------------------------------------------
Order charged a fee by the NYSE          $0.01 per share executed.
 specialist.
Order that attempts to execute in the    $0.0002 per share executed (but
 Nasdaq Facilities prior to routing and   no more than $[60,000] 25,000
 that is not charged a fee by the NYSE    per month).
 specialist or that is routed to NYSE
 via ITS.
Order that does not attempt to execute   $0.0003 per share executed (but
 in the Nasdaq Facilities prior to        no more than $[100,000] 75,000
 routing and that is not charged a fee    per month).
 by the NYSE specialist.
------------------------------------------------------------------------

    (8) No change.
    (j)-(v) 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, Nasdaq 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. Nasdaq 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
    Nasdaq is proposing several changes to its price schedule for
routing and execution of orders in non-Nasdaq exchange-listed
securities. The changes are in response to fees being imposed by other
trading venues on orders routed directly through Nasdaq Execution
Services, LLC (Nasdaq's broker-dealer subsidiary) and through the
Intermarket Trading System (``ITS''). Several markets, including NYSE
Arca, the Boston Stock Exchange, the National Stock Exchange, and the
Chicago Stock Exchange, have announced or begun to impose fees of
approximately $0.003 per share for orders routed to them.
    These fee changes have created a pricing structure for trading
securities listed on the New York Stock Exchange (``NYSE'') that is in
a state of flux, characterized by dramatic differences in fees for
effectively the same services. For example, the markets listed above
charge 28 or 30 cents per 100 shares for accessing liquidity, while the
NYSE charges 2.5 cents per 100 shares (less if the firm's total fees
reach a $750,000 per month cap), and Nasdaq currently charges 7 cents
per 100 shares. Furthermore, while several markets rebate approximately
20 cents per 100 shares for providing liquidity, Nasdaq either provides
no rebate, or rebates only 5 or 6 cents per 100 shares; the NYSE, by
contrast, charges 2.5 cents per

100 shares. Nasdaq believes that the market will find an equilibrium
pricing structure, because the disparities listed above are unstable
due to the interconnectivity of the market. In order to transition to a
more stable fee structure, Nasdaq is proposing several fee changes.
These changes should be viewed in light of the dramatic disparities in
pricing listed above.
    For orders in non-Nasdaq-listed exchange-traded funds (``ETFs'')
routed to venues other than the NYSE, Nasdaq is proposing to eliminate
current specific fees for orders routed through ITS or that route
without checking the books of the Nasdaq Facilities, and is instituting
a flat fee of $0.003 per share executed (plus $0.01 per share in the
case of orders charged a fee by an American Stock Exchange (``Amex'')
specialist). Thus, fees would be reduced for orders that do not attempt
to execute prior to routing, would be increased for orders routed
through ITS, and would remain unchanged for all other routed ETF
orders.
    For orders in non-Nasdaq-listed securities other than ETFs that are
routed to venues other than the NYSE, Nasdaq is proposing to eliminate
current specific fees that differentiate among orders based on a
security's listing market and/or the order's destination market and
instituting a flat fee of $0.0028 per share executed (plus $0.01 per
share in the case of orders charged a fee by an Amex specialist). As a
result, fees would remain unchanged for orders routed to NYSE Arca,
would decrease slightly for orders routed to Amex and for orders in
non-NYSE-listed securities routed to regional exchanges or ECNs, and
would increase for orders in NYSE-listed securities routed to regional
exchanges or ECNs and for orders routed through ITS.
    For orders in all securities routed to the NYSE for execution,
Nasdaq is proposing to institute a decrease (from $0.0007 to $0.0002
per share executed) for orders routed through the ITS, and would apply
to these charges the same monthly fee cap that applies to orders routed
through NYSE's DOT system after checking the books of the Nasdaq
Facilities. Moreover, Nasdaq would reduce this monthly cap from $60,000
to $25,000. Nasdaq is also reducing the monthly fee cap for DOT orders
that do not check the Nasdaq Facilities' books, from $100,000 to
$75,000.
    Finally, to encourage firms to utilize Nasdaq in non-Nasdaq-listed
securities, Nasdaq is proposing to introduce a higher pricing tier of
$0.0015 per share executed for members to access liquidity when those
members provide an average of less than 50,000 shares of liquidity per
day and access and/or route an average of less than 50,000 shares of
liquidity per day in non-Nasdaq securities through the Nasdaq
Facilities during the month. In addition, Nasdaq is introducing an
intermediate pricing tier of $0.001 per share executed for members to
access liquidity when those members provide an average of between
50,000 shares and 100,000 shares of liquidity per day and access and/or
route an average of between 50,000 shares and 100,000 shares of
liquidity per day.\6\ Because this change is made on a pilot basis,
Nasdaq states that it will the review affect of the price change and
determine whether to submit an additional filing regarding these fees
by December 1, 2006.
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    \6\ Nasdaq would continue to charge $0.0007 per share executed
for all other members to access liquidity (i.e., when those members
provide an average of more than 100,000 shares of liquidity per day
and access and/or route an average of more than 100,000 shares of
liquidity per day). Telephone conversation among John Yetter, Senior
Associate General Counsel, Nasdaq, David Liu, Special Counsel,
Division of Market Regulation (``Division''), Commission, and
Theodore Venuti, Attorney, Division, Commission, on November 8,
2006.
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    Although the Nasdaq Facilities have enjoyed substantial growth in
the share of non-Nasdaq-listed stocks that they executed over the past
year, many members that use the Nasdaq Facilities still do so only on a
minimal basis. In fact, if the new fees had been in place in September
2006, a higher rate would have applied to over 84% of the firms trading
non-Nasdaq securities through the Nasdaq Facilities. By setting the
thresholds for lower rates at the modest levels of 50,000 and 100,000
shares per day, Nasdaq hopes to encourage all of these firms to rethink
their routing and quoting practices, in lieu of reflexively sending
their orders to just one market. Nasdaq believes that incentives aimed
at encouraging a modest level of use by a broader number of members
would further enhance the quality of Nasdaq markets for trading these
securities.
    Nasdaq believes that the fee would result in overall monthly fees
and rebates with respect to accessing and providing liquidity through
Nasdaq that are significantly lower than fees and rebates on other
venues. For example, a market participant providing no liquidity would
pay $0.0015 per share accessed and receive no rebate; under pricing
recently introduced by NYSE Arca, a market participant providing no
liquidity would pay twice as much--$0.003 per share accessed--and
receive no rebate.
    Although the absence of liquidity provider credits on the NYSE
itself makes comparison more difficult, it should be noted that recent
fee increases by that venue clearly had a disparate impact on Nasdaq
Execution Services and other market participants that do not charge
customers high commissions--in the case of Nasdaq Execution Services,
increasing monthly charges to route orders to the NYSE from an average
of $3,620 per month during the six months prior to the fee increase to
$750,000 per month, an increase of 20,600 percent. In addition, Nasdaq
and others routing orders to the NYSE must often pay unfiled specialist
charges of $0.01 per share for many orders that they route to the NYSE.
Nevertheless, the NYSE's filed rate for transactions of $0.00025 per
share executed, coupled with its new monthly fee cap of $750,000 per
month, results in dramatically lower average execution fees for large
participants in its market. For example, a firm with an average daily
volume of 300 million shares per day during October 2006 would pay an
average per share charge of $0.000114, less than half the per share
rate paid by firms not reaching the cap. In contrast to the NYSE's
steep discount, however, which serves simply to reduce the relative
fees of its largest customers, Nasdaq's change is designed specifically
to encourage use of the Nasdaq system that enhances market quality and
thereby benefits investors choosing to enter orders into Nasdaq.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 15A of the Act,\7\ in general, and with
Section 15A(b)(5) of the Act,\8\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which the NASD operates or controls. Nasdaq states that the
proposed rule change would put lower caps on fees to route orders to
the NYSE, thereby reducing charges to members that make substantial use
of Nasdaq's routing facilities. Nasdaq states that the proposal also
imposes more uniform charges for routing to other venues. Finally,
Nasdaq states that the proposed change introduces a higher fee for
accessing Nasdaq Facility liquidity in cases where a market
participant's use of the Nasdaq Facilities does not meet certain
minimal thresholds. Nasdaq believes that this change is consistent with
an equitable allocation of fees because lower overall fees are charged

to market participant that enhance market quality by providing
liquidity.
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    \7\ 15 U.S.C. 78o-3.
    \8\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. In particular, Nasdaq does not
believe that the proposed change to fees to access liquidity in non-
Nasdaq securities through the Nasdaq Facilities would impose a burden
on competition by other markets that route orders to the Nasdaq
Facilities for execution. First, as discussed in greater detail above,
Nasdaq's fees applicable to members accessing substantially more
liquidity than they provide are one-half of NYSE Arca's, while NYSE
Arca provides greater rebates to liquidity providers. Thus, to the
extent that NYSE Arca, for example, routes only marketable orders to
Nasdaq, it would receive more beneficial pricing than it offers under
similar circumstances. Second, it should be noted that status as an
execution venue does not equate to acting solely as a liquidity
accessor with respect to other markets. Through its Nasdaq Execution
Services broker-dealer, Nasdaq provides substantial liquidity on the
floor of the NYSE, because Nasdaq views this as a valuable service that
can be offered to its members. Thus, if the NYSE had a comparable fee
structure in place, Nasdaq would easily qualify for a reduced rate when
accessing liquidity at that venue. Finally, the change is broad in its
application, in that it currently would apply to over 84% of firms
trading non-Nasdaq securities through the Nasdaq Facilities, all of
which are equally eligible to increase their use of the Nasdaq
Facilities in Nasdaq in order to qualify for more favorable pricing.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change is subject to Section 19(b)(3)(A)(ii) of
the Act \9\ and subparagraph (f)(2) of Rule 19b-4 thereunder \10\
because it establishes or changes a due, fee, or other charge
applicable only to a member imposed by the self-regulatory
organization. Accordingly, the proposal is effective upon Commission
receipt of the filing. At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

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

Electronic Comments

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

File No. SR-NASD-2006-122 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-NASD-2006-122. 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. Copies of such
filing will also be available for inspection and copying at the
principal office of the NASD. 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-NASD-2006-122 and should be submitted on or before December
11, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-19516 Filed 11-17-06; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 173 (Friday, September 6, 2019)]
[Proposed Rules]
[Pages 46905-46907]
[FR Doc No: 2019-19112]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2019-0677; Airspace Docket No. 19-ACE-5]
RIN 2120-AA66

Proposed Revocation of VHF Omnidirectional Range (VOR) Federal
Airway V-61 and Amendment of Area Navigation Route T-286 Due to the
Decommissioning of the Robinson, KS, VOR

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to remove VHF Omnidirectional Range (VOR)
Federal airway V-61 in its entirety and extend area navigation (RNAV)
route T-286 in its place. The FAA is proposing this action due to the
planned decommissioning of the Robinson, KS (RBA), VOR portion of the
Robinson VOR/Distance Measuring Equipment (VOR/DME) navigation aid
(NAVAID). The Robinson VOR is being decommissioned in support of the
FAA's VOR Minimum Operational Network (MON) program.

DATES: Comments must be received on or before October 21, 2019.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, Washington, DC 20590; telephone:
1(800) 647-5527, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2019-0677; Airspace Docket No. 19-ACE-5 at the beginning of your
comments. You may also submit comments through the internet at http://www.regulations.gov. FAA Order 7400.11C, Airspace Designations and
Reporting Points, and subsequent amendments can be viewed online at
http://www.faa.gov/air_traffic/publications/. For further information,
you can contact the Airspace Policy Group, Federal Aviation
Administration, 800 Independence Avenue SW, Washington, DC 20591;
telephone:<PHONE_NUMBER>. The Order is also available for inspection
at the National Archives and Records Administration (NARA). For
information on the availability of FAA Order 7400.11C at NARA, email:
<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Colby Abbott, Airspace Policy Group,
Office of Airspace Services, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it would modify the National Airspace System as necessary
to preserve the safe and efficient flow of air traffic.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA-2019-0677; Airspace Docket No. 19-ACE-5) and be submitted in
triplicate to the Docket Management Facility (see ADDRESSES section for
address and phone number). You may also submit comments through the
internet at http://www.regulations.gov.
    Commenters wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed,
stamped postcard on which the following statement is made: ``Comments
to FAA Docket No. FAA-2019-0677; Airspace Docket No. 19-ACE-5.'' The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified comment
closing date will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the comment
closing date. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at http://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the office of the Operations Support Group, Central
Service Center, Federal Aviation Administration, 10101 Hillwood Blvd.,
Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

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

Background

    The FAA is planning to decommission the VOR portion of the
Robinson, KS (RBA), VOR/DME in March 2020. The Robinson VOR was one of
the candidate VORs identified for discontinuance by the FAA's VOR MON
program and listed in the Final policy statement notice, ``Provision of
Navigation Services for the Next Generation Air Transportation System
(NextGen) Transition to Performance-Based Navigation (PBN) (Plan for
Establishing a VOR Minimum Operational Network),'' published in the
Federal Register of July 26, 2016 (81 FR 48694), Docket No. FAA-2011-
1082.
    With the planned decommissioning of the Robinson VOR, two of the
three V-61 route segments are impacted and the remaining ground-based
NAVAID

coverage in the area is insufficient to enable the continuity of V-61
as charted. As such, the FAA proposes to remove V-61 in its entirety
between the Grand Island, NE, VOR/Distance Measuring Equipment (VOR/
DME) NAVAID and the intersection of the Robinson, KS, VOR/DME 141[deg]
and St. Joseph, MO, VOR Tactical Air Navigation (VORTAC) 211[deg]
radials (the BOWLR fix).
    To overcome the gap that would result in the en route structure by
the removal of V-61, the FAA proposes to extend T-286 between the Grand
Island VOR/DME and BOWLR fix to overlay the V-61 routing being removed.
Additionally, adjacent VOR Federal airways V-4, V-50, V-71, V-77, V-
138, V-307, V-380, and V-551 between the St. Joseph, MO, VORTAC and
Topeka, KS, VORTAC areas and the Grand Island, NE, VOR/DME remain
available to circumnavigate the affected area. Further, the fixes
located along V-61 would be retained in place to assist pilots and air
traffic controllers already familiar with them for navigation purposes.
Instrument flight rules (IFR) traffic could use the extended T-286, use
the adjacent VOR Federal airways, file point-to-point through the
affected area using the fixes that will remain in place, or receive air
traffic control (ATC) radar vectors through the area. Lastly, the
Robinson DME facility is planned to be retained and charted in its
current location as a DME facility with the ``RBA'' identifier. Visual
flight rules (VFR) pilots who elect to navigate via the airways through
the affected area could also take advantage of the air traffic services
previously listed.
    A number of minor editorial corrections to the T-286 legal
description are also proposed to correct erroneous information and
comply with route description policy guidance. The editorial
corrections do not change the route's structure, operational use, or
charted depiction.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 to remove VOR Federal airway V-61 and
extend RNAV route T-286 to overlay the V-61 routing being removed. The
planned decommissioning of the VOR portion of the Robinson, KS, VOR/DME
has made this action necessary. The proposed air traffic service (ATS)
route actions are described below.
    V-61: V-61 currently extends between the Grand Island, NE, VOR/DME
and the intersection of the Robinson, KS, VOR/DME 141[deg] and St.
Joseph, MO, VOR Tactical Air Navigation (VORTAC) 211[deg] radials
(BOWLR fix). The FAA proposes to remove the airway in its entirety.
    T-286: T-286 currently extends between the Rapid City, SD, VORTAC
and the Grand Island, NE, VOR/DME. The FAA proposes to extend the route
southeast between the Grand Island VOR/DME and the BOWLR fix.
Additionally, the Rapid City VORTAC ``RAP'' identifier is added to the
first line of the route description; the type of fix for EFFEX and the
type of facility for Grand Island, NE, are corrected; and the
geographic coordinates of each route point are updated to be expressed
in degrees, minutes, seconds, and hundredths of a second.
    VOR Federal airways are published in paragraph 6010(a) and low
altitude RNAV T-routes are published in paragraph 6011 of FAA Order
7400.11C dated August 13, 2018, and effective September 15, 2018, which
is incorporated by reference in 14 CFR 71.1. The ATS routes listed in
this document would be subsequently published in the Order.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this proposed 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
Department of Transportation (DOT) Regulatory Policies and Procedures
(44 FR 11034; February 26, 1979); and (3) does not warrant preparation
of a regulatory evaluation as the anticipated impact is so minimal.
Since this is a routine matter that will only affect air traffic
procedures and air navigation, it is certified that this proposed rule,
when promulgated, will not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.

Environmental Review

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

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

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

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

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

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

Sec.  71.1   [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11C,
Airspace Designations and Reporting Points, dated August 13, 2018, and
effective September 15, 2018, is amended as follows:

Paragraph 6010(a) Domestic VOR Federal Airways.

* * * * *

V-61 [Removed]

* * * * *

Paragraph 6011 United States Area Navigation Routes.

* * * * *

T-286 Rapid City, SD (RAP) to BOWLR, KS [Amended]
Rapid City, SD (RAP)                            VORTAC                         (Lat. 43[deg]58'33.74'' N, long. 103[deg]00'44.38'' W)
Gordon, NE (GRN)                                NDB                            (Lat. 42[deg]48'03.90'' N, long. 102[deg]10'45.82'' W)
EFFEX, NE                                       FIX                            (Lat. 42[deg]19'59.17'' N, long. 101[deg]20'11.41'' W)
Thedford, NE (TDD)                              VOR/DME                        (Lat. 41[deg]58'53.99'' N, long. 100[deg]43'08.52'' W)
BOKKI, NE                                       FIX                            (Lat. 41[deg]39'54.99'' N, long. 99[deg]52'17.00'' W)
Grand Island, NE (GRI)                          VOR/DME                        (Lat. 40[deg]59'02.50'' N, long. 98[deg]18'53.20'' W)
Pawnee City, NE (PWE)                           VORTAC                         (Lat. 40[deg]12'01.27'' N, long. 96[deg]12'22.61'' W)
Robinson, KS (RBA)                              DME                            (Lat. 39[deg]51'03.00'' N, long. 95[deg]25'23.00'' W)
BOWLR, KS                                       FIX                            (Lat. 39[deg]37'21.29'' N, long. 95[deg]11'00.26'' W)

* * * * *

    Issued in Washington, DC, on August 28, 2019.
Rodger A. Dean Jr.,
Manager, Airspace Policy Group.
[FR Doc. 2019-19112 Filed 9-5-19; 8:45 am]
 BILLING CODE 4910-13-P