[Federal Register Volume 82, Number 89 (Wednesday, May 10, 2017)]
[Notices]
[Pages 21839-21843]
[FR Doc No: 2017-09420]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80591; File No. SR-NASDAQ-2017-025]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule Change, as Modified by Amendment
Nos. 3 and 4, To List and Trade Shares of the Hartford Global Impact
NextSharesTM Fund Under Nasdaq Rule 5745

May 4, 2017.

I. Introduction

    On March 1, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade common shares (``Shares'') of
the Hartford Global Impact NextSharesTM Fund (``Fund'')
under Nasdaq Rule 5745. The proposed rule change was published for
comment in the Federal Register on March 20, 2017.\3\ On April 13,
2017, the Exchange filed Amendment No. 3 to the proposed rule change
and, on May 3, 2017, the Exchange filed Amendment No. 4 to the proposed
rule change.\4\ The Commission received no comments on the proposed
rule change. This order grants approval of the proposed rule change, as
modified by Amendment Nos. 3 and 4.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80237 (March 14,
2017), 82 FR 14395 (``Notice'').
    \4\ On April 4, 2017, the Exchange filed Amendment No. 1 to the
proposed rule change and, on April 18, 2017, the Exchange withdrew
Amendment No. 1. On April 12, 2017, the Exchange filed Amendment No.
2 to the proposed rule change and, on April 13, 2017, the Exchange
withdrew Amendment No. 2. Amendment No. 3 to the proposed rule
change replaces and supersedes the original filing in its entirety.
In Amendment No. 3, the Exchange: (a) Represents that neither the
Adviser nor the Sub-Adviser (as defined herein) is a registered
broker-dealer; however, it represents that each of the Adviser and
the Sub-Adviser is affiliated with a broker-dealer, and each of the
Adviser and the Sub-Adviser has implemented and will maintain a fire
wall with respect to its affiliated broker-dealer regarding access
to information concerning the composition of, and/or changes to, the
Fund's portfolio; (b) represents that personnel who make decisions
on the Fund's portfolio composition must be subject to procedures
designed to prevent the use and dissemination of material, non-
public information regarding the Fund's portfolio; (c) represents
that, in the event that the Adviser or the Sub-Adviser registers as
a broker-dealer or becomes newly affiliated with a broker-dealer, or
any new adviser or a sub-adviser to the Fund is a registered broker-
dealer or becomes affiliated with a broker-dealer, such new adviser
or sub-adviser will implement and maintain a fire wall with respect
to its relevant personnel and/or such broker-dealer affiliate, if
applicable, regarding access to information concerning the
composition of, and/or changes to, the Fund's portfolio, and will be
subject to procedures designed to prevent the use and dissemination
of material non-public information regarding such portfolio; (d)
provides additional detail regarding the investments and operation
of the Fund and the Master Portfolio (as defined herein); (e)
clarifies the public Web sites on which certain information about
the Fund would be available; (f) modifies the continued listing
representations to conform to Nasdaq rules; and (g) makes other
technical, non-substantive corrections in the proposed rule change.
Amendment No. 3 is available at: https://www.sec.gov/comments/sr-nasdaq-2017-025/nasdaq2017025-1701702-149977.pdf. Amendment No. 4 to
the proposed rule change is a partial amendment in which the
Exchange clarifies that the Reporting Authority (as defined in
Nasdaq Rule 5745) will implement and maintain, or ensure that the
Composition File (as defined in Nasdaq Rule 5745) will be subject
to, procedures designed to prevent the use and dissemination of
material non-public information regarding the Fund's portfolio
positions and changes in the positions. Because Amendment Nos. 3 and
4 to the proposed rule change do not materially alter the substance
of the proposed rule change or raise unique or novel regulatory
issues, Amendment Nos. 3 and 4 are not subject to notice and
comment.
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II. Exchange's Description of the Proposed Rule Change

    The Exchange proposes to list and trade the Shares of the Fund
under Nasdaq Rule 5745, which governs the listing and trading of
Exchange-Traded Managed Fund Shares, as defined in Nasdaq Rule
5745(c)(1). The Fund is a series of Hartford Funds NextShares Trust
(``Trust'').\5\ The Exchange represents that the Trust will be
registered with the Commission as an open-end investment company and
that it has filed a registration statement on Form N-1A (``Registration
Statement'') with the Commission.\6\
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    \5\ According to the Exchange, the Commission has issued an
order granting the Trust and certain affiliates of the Trust
exemptive relief under the Investment Company Act of 1940 (``1940
Act''). See Investment Company Act Release No. 31607 (May 19, 2015)
(File No. 812-14439). The Exchange represents that, in compliance
with Nasdaq Rule 5745(b)(5), which applies to Shares based on an
international or global portfolio, the Trust's application for
exemptive relief under the 1940 Act states that the Trust will
comply with the federal securities laws in accepting securities for
deposits and satisfying redemptions with securities, including that
the securities accepted for deposits and the securities used to
satisfy redemption requests are sold in transactions that would be
exempt from registration under the Securities Act of 1933, as
amended.
    \6\ See Registration Statement on Form N-1A for the Trust dated
November 30, 2016 (File Nos. 333-214842 and 811-23215).
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    Hartford Funds Management Company, LLC (``Adviser'') will be the
adviser to the Fund and Wellington Management Company LLP will the sub-
adviser to the Fund (``Sub-Adviser''). ALPS Distributors, Inc. will be
the principal underwriter and distributor of the Fund's Shares.
Hartford Funds Management Company, LLC will act as the administrator
and accounting agent to the Fund. State Street Bank and Trust Company
will act as sub-administrator, sub-accounting agent, transfer agent,
and custodian to the Fund.
    The Exchange has made the following representations and statements
in describing the Fund.\7\
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    \7\ The Commission notes that additional information regarding
the Trust, the Fund, and the Shares, including investment
strategies, risks, creation and redemption procedures, calculation
of net asset value (``NAV''), fees, distributions, and taxes, among
other things, can be found in the Notice, Amendment Nos. 3 and 4,
and Registration Statement, as applicable. See supra notes 3, 4, and
6, respectively, and accompanying text.

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A. Principal Investment Strategy of the Hartford Global Impact
NextSharesTM Fund

    According to the Exchange, the Fund will be actively managed and
will pursue the investment strategy described below.\8\
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    \8\ According to the Exchange, additional information regarding
the Fund will be available on the free public Web site for the Fund
at www.hartfordfunds.com (which may contain links for certain
information to www.nextshares.com).
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    The investment objective of the Fund is long-term capital
appreciation. The Fund seeks to achieve its objective by investing all
of its assets in shares of the Global Impact Master Portfolio (``Master
Portfolio;'' and references to the ``Fund'' include, where applicable,
the Master Portfolio), which has the same investment objective and
strategy as the Fund. The Fund invests in equity securities of issuers
located throughout the world, including non-dollar securities and
securities of emerging market issuers. The Fund's Sub-Adviser
specifically seeks to invest the Fund's assets in companies that focus
their operations in areas that the Sub-Adviser believes are likely to
address major social and environmental challenges including, but not
limited to, hunger, health, clean water and sanitation, affordable
housing, education and training, financial inclusion, narrowing the
digital divide, alternative energy, resource stewardship and resource
efficiency. The Fund may invest in companies of any market
capitalization, including small capitalization securities, located
anywhere in the world, although the Fund will not normally invest more
than 33% of its assets in issuers that conduct their principal business
activities in emerging markets or whose securities are traded
principally on exchanges in emerging markets.
    The Fund may also invest in depositary receipts or other securities
that are convertible into securities of foreign issuers and could, at
times, hold a portion of its assets in cash. Under normal
circumstances, at least 40% (and normally not less than 30%) of the
Fund's net assets will be invested in or exposed to foreign securities
or derivative instruments with exposure to foreign securities of at
least three different countries outside the United States.\9\
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    \9\ According to the Exchange, investments are deemed to be
``foreign'' if: (a) An issuer's domicile or location of headquarters
is in a foreign country; (b) an issuer derives a significant
proportion (at least 50%) of its revenues or profits from goods
produced or sold, investments made, or services performed in a
foreign country or has at least 50% of its assets situated in a
foreign country; (c) the principal trading market for a security is
located in a foreign country; or (d) it is a foreign currency.
According to the Exchange, the Fund's investments in derivative
securities, exchange traded funds, and exchange traded notes will be
considered to be ``foreign'' if the underlying assets represented by
the investment are determined to be foreign using the foregoing
criteria.
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    The Fund will operate as a ``feeder fund,'' which means it will
invest all of its assets in another investment company (the Master
Portfolio). The Master Portfolio is a series of the Hartford Funds
Master Trust, a Delaware statutory trust. The Adviser and the Sub-
Adviser are also the Adviser and Sub-Adviser, respectively, of the
Master Portfolio. The Fund has the same investment objective and
limitations as the Master Portfolio in which it invests. The Fund does
not buy investment securities directly. The Master Portfolio, on the
other hand, invests directly in portfolio securities. According to the
Exchange, use of the master/feeder structure enables the Fund to pool
its assets with other investors in the Master Portfolio, if any, which
may result in efficiencies in portfolio management and administration
that could lower Fund costs and enhance shareholder returns.

B. Portfolio Disclosure and Composition File

    Consistent with the disclosure requirements that apply to
traditional open-end investment companies, a complete list of current
Fund portfolio positions will be made available at least once each
calendar quarter, with a reporting lag of not more than 60 days. The
Fund may provide more frequent disclosures of portfolio positions at
its discretion.
    As defined in Nasdaq Rule 5745(c)(3), the ``Composition File'' is
the specified portfolio of securities and/or cash that the Fund will
accept as a deposit in issuing a creation unit of Shares, and the
specified portfolio of securities and/or cash that the Fund will
deliver in a redemption of a creation unit of Shares. The Composition
File will be disseminated through the National Securities Clearing
Corporation once each business day before the open of trading in Shares
on that day and also will be made available to the public each day on a
free Web site.\10\ Because the Fund seeks to preserve the
confidentiality of its current portfolio trading program, the Fund's
Composition File generally will not be a pro rata reflection of the
Fund's investment positions. Each security included in the Composition
File will be a current holding of the Fund, but the Composition File
generally will not include all of the securities in the Fund's
portfolio or match the weightings of the included securities in the
portfolio. Securities that the Adviser or the Sub-Adviser is in the
process of acquiring for the Fund generally will not be represented in
the Fund's Composition File until their purchase has been completed.
Similarly, securities that are held in the Fund's portfolio but are in
the process of being sold may not be removed from its Composition File
until the sale is substantially completed. To the extent that the Fund
creates or redeems Shares in-kind, it will use cash amounts to
supplement the in-kind transactions to the extent necessary to ensure
that creation units are purchased and redeemed at NAV. The Composition
File also may consist entirely of cash, in which case it will not
include any of the securities in the Fund's portfolio.\11\
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    \10\ The Exchange represents that the free Web site containing
the Composition File will be www.nextshares.com.
    \11\ In determining whether the Fund will issue or redeem
creation units entirely on a cash basis, the key consideration will
be the benefit that would accrue to the Fund and its investors.
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C. Intraday Indicative Value

    An estimated value of an individual Share, defined in Nasdaq Rule
5745(c)(2) as the ``Intraday Indicative Value'' (``IIV'') will be
calculated and disseminated at intervals of not more than 15 minutes
throughout the Regular Market Session \12\ when Shares trade on the
Exchange. The Exchange will obtain a representation from the issuer of
the Shares that the IIV will be calculated on an intraday basis and
provided to Nasdaq for dissemination via the Nasdaq Global Index
Service. The IIV will be based on current information regarding the
value of the securities and other assets held by the Fund.\13\ The
purpose of the IIV is to enable investors to estimate the next-
determined NAV so they can determine the number of Shares to buy or
sell if they want to transact in an approximate dollar amount.\14\
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    \12\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4:00 a.m. to
9:30 a.m. Eastern Time (``E.T.''); (2) Regular Market Session from
9:30 a.m. to 4:00 p.m. or 4:15 p.m. E.T.; and (3) Post-Market
Session from 4:00 p.m. or 4:15 p.m. to 8:00 p.m. E.T.).
    \13\ IIVs disseminated throughout each trading day would be
based on the same portfolio as used to calculate that day's NAV. The
Fund will reflect purchases and sales of portfolio positions in its
NAV the next business day after trades are executed.
    \14\ In NAV-Based Trading, described herein, prices of executed
trades are not determined until the reference NAV is calculated, so
buyers and sellers of Shares during the trading day will not know
the final value of their purchases and sales until the end of the
trading day. The Exchange represents that the Fund's Registration
Statement, Web site, and any advertising or marketing materials will
include prominent disclosure of this fact. The Exchange states that,
although IIVs may provide useful estimates of the value of intraday
trades, they cannot be used to calculate with precision the dollar
value of the Shares to be bought or sold.

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D. NAV-Based Trading

    Because Shares will be listed and traded on the Exchange, Shares
will be available for purchase and sale on an intraday basis. Shares
will be purchased and sold in the secondary market at prices directly
linked to the Fund's next-determined NAV using a trading protocol
called ``NAV-Based Trading.'' All bids, offers, and execution prices of
Shares will be expressed as a premium/discount (which may be zero) to
the Fund's next-determined NAV (e.g., NAV-$0.01, NAV + $0.01).\15\ The
Fund's NAV will be determined each business day, normally as of 4:00
p.m. E.T. Trade executions will be binding at the time orders are
matched on Nasdaq's facilities, with the transaction prices contingent
upon the determination of NAV. Nasdaq represents that all Shares listed
on the Exchange will have a unique identifier associated with their
ticker symbols, which will indicate that the Shares are traded using
NAV-Based Trading.
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    \15\ According to the Exchange, the premium or discount to NAV
at which Share prices are quoted and transactions are executed will
vary depending on market factors, including the balance of supply
and demand for Shares among investors, transaction fees and other
costs in connection with creating and redeeming creation units of
Shares, the cost and availability of borrowing Shares, competition
among market makers, the Share inventory positions and inventory
strategies of market makers, the profitability requirements and
business objectives of market makers, and the volume of Share
trading.
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    According to the Exchange, member firms will utilize certain
existing order types and interfaces to transmit Share bids and offers
to Nasdaq, which will process Share trades like trades in shares of
other listed securities.\16\ In the systems used to transmit and
process transactions in Shares, the Fund's next-determined NAV will be
represented by a proxy price (e.g., 100.00) and a premium/discount of a
stated amount to the next-determined NAV to be represented by the same
increment/decrement from the proxy price used to denote NAV (e.g., NAV-
$0.01 would be represented as 99.99; NAV + $0.01 as 100.01).
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    \16\ According to the Exchange, all orders to buy or sell Shares
that are not executed on the day the order is submitted will be
automatically canceled as of the close of trading on that day. Prior
to the commencement of trading in the Fund, the Exchange will inform
its members in an Information Circular of the effect of this
characteristic on existing order types.
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    To avoid potential investor confusion, Nasdaq represents that it
will work with member firms and providers of market data services to
seek to ensure that representations of intraday bids, offers, and
execution prices of Shares that are made available to the investing
public follow the ``NAV-$0.01/NAV + $0.01'' (or similar) display
format. Specifically, the Exchange will use the NASDAQ Basic and NASDAQ
Last Sale data feeds to disseminate intraday price and quote data for
Shares in real time in the ``NAV-$0.01/NAV + $0.01'' (or similar)
display format. Member firms may use the NASDAQ Basic and NASDAQ Last
Sale data feeds to source intraday Share prices for presentation to the
investing public in the ``NAV-$0.01/NAV + $0.01'' (or similar) display
format. Alternatively, member firms could source intraday Share prices
in proxy price format from the Consolidated Tape and other Nasdaq data
feeds (e.g., Nasdaq TotalView and Nasdaq Level 2) and use a simple
algorithm to convert prices into the ``NAV-$0.01/NAV + $0.01'' (or
similar) display format. Prior to the commencement of trading in the
Fund, the Exchange will inform its members in an Information Circular
of the identities of the specific Nasdaq data feeds from which intraday
Share prices in proxy price format may be obtained.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with 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 Exchange's rules be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
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    \17\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \18\ 15 U.S.C. 78f(b)(5).
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    The Shares will be subject to Rule 5745, which sets forth the
initial and continued listing criteria applicable to Exchange-Traded
Managed Fund Shares. A minimum of 50,000 Shares and no less than two
creation units of the Fund will be outstanding at the commencement of
trading on the Exchange.
    Nasdaq deems the Shares to be equity securities, thus rendering
trading in the Shares subject to the Exchange's existing rules
governing the trading of equity securities. Every order to trade Shares
of the Fund is subject to the proxy price protection threshold of plus/
minus $1.00, which determines the lower and upper thresholds for the
life of the order and provides that the order will be canceled at any
point if it exceeds $101.00 or falls below $99.00.\19\ With certain
exceptions, each order also must contain the applicable order
attributes, including routing instructions and time-in-force
information, as described in Nasdaq Rule 4703.\20\
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    \19\ See Nasdaq Rule 5745(h).
    \20\ See Nasdaq Rule 5745(b)(6).
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    Nasdaq also represents that trading in the Shares will be subject
to the existing trading surveillances, administered by both Nasdaq and
the Financial Industry Regulatory Authority, Inc. (``FINRA'') on behalf
of the Exchange, which are designed to detect violations of Exchange
rules and applicable federal securities laws.\21\ The Exchange
represents that its surveillance procedures are adequate to properly
monitor trading of Shares on the Exchange and to deter and detect
violations of Exchange rules and applicable federal securities laws.
FINRA, on behalf of the Exchange, will communicate as needed with, and
may obtain information from, other markets and entities that are
members of the Intermarket Surveillance Group (``ISG'') \22\ regarding
trading in the Shares, and in exchange-traded securities and
instruments held by the Fund (to the extent those exchange-traded
securities and instruments are known through the publication of the
Composition File and periodic public disclosures of the Fund's
portfolio holdings). In addition, the Exchange may obtain information
regarding trading in the Shares, and in exchange-traded securities and
instruments held by the Fund (to the extent those exchange-traded
securities and instruments are known through the publication of the
Composition File and periodic public disclosures of the

Fund's portfolio holdings), from markets and other entities that are
members of ISG, which includes securities and futures exchanges, or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
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    \21\ The Exchange states that FINRA provides surveillance of
trading on the Exchange pursuant to a regulatory services agreement,
and that the Exchange is responsible for FINRA's performance under
this regulatory services agreement.
    \22\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Fund's portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
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    Prior to the commencement of trading in the Fund, the Exchange will
inform its members in an Information Circular of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Circular will discuss the following: (a)
The procedures for purchases and redemptions of Shares in creation
units (and that Shares are not individually redeemable); (b) Nasdaq
Rule 2111A, which imposes suitability obligations on Nasdaq members
with respect to recommending transactions in the Shares to customers;
(c) how information regarding the IIV and Composition File is
disseminated; (d) the requirement that members deliver a prospectus to
investors purchasing Shares prior to or concurrently with the
confirmation of a transaction; and (e) information regarding NAV-Based
Trading protocols.
    The Information Circular also will identify the specific Nasdaq
data feeds from which intraday Share prices in proxy price format may
be obtained. As noted above, all orders to buy or sell Shares that are
not executed on the day the order is submitted will be automatically
canceled as of the close of trading on that day, and the Information
Circular will discuss the effect of this characteristic on existing
order types. In addition, Nasdaq intends to provide its members with a
detailed explanation of NAV-Based Trading through a Trading Alert
issued prior to the commencement of trading in Shares on the Exchange.
    Nasdaq states that neither the Adviser nor the Sub-Adviser is a
registered broker-dealer; however, each of the Adviser and the Sub-
Adviser is affiliated with a broker-dealer and has implemented and will
maintain a fire wall with respect to its affiliated broker-dealer
regarding access to information concerning the composition of, and/or
changes to, the Fund's portfolio.\23\ The Reporting Authority \24\ will
implement and maintain, or ensure that the Composition File will be
subject to, procedures designed to prevent the use and dissemination of
material non-public information regarding the Fund's portfolio
positions and changes in the positions.\25\ In the event that (a) the
Adviser or the Sub-Adviser registers as a broker-dealer or becomes
newly affiliated with a broker-dealer, or (b) any new adviser or a sub-
adviser to the Fund is a registered broker-dealer or becomes affiliated
with a broker-dealer, such new adviser or sub-adviser will implement
and maintain a fire wall with respect to its relevant personnel and/or
such broker-dealer affiliate, as the case may be, regarding access to
information concerning the composition of, and/or changes to, the
Fund's portfolio, and will be subject to procedures designed to prevent
the use and dissemination of material non-public information regarding
the portfolio.\26\
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    \23\ See Amendment No. 3, supra note 4. The Exchange further
represents that an investment adviser to an open-end fund is
required to be registered under the Investment Advisers Act of 1940
(``Advisers Act''). As a result, the Adviser, Sub-Adviser, and their
related personnel are subject to the provisions of Rule 204A-1 under
the Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has: (i) Adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above. See Amendment No.
3, supra note 4, at note 9.
    \24\ See Nasdaq Rule 5745(c)(4).
    \25\ See Amendment No. 4, supra note 4.
    \26\ See Amendment No. 3, supra note 4.
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    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\27\ which sets forth Congress' finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Information regarding
NAV-based trading prices, best bids and offers for Shares, and volume
of Shares traded will be continuously available on a real-time basis
throughout each trading day on brokers' computer screens and other
electronic services. All bids and offers for Shares and all Share trade
executions will be reported intraday in real time by the Exchange to
the Consolidated Tape \28\ and separately disseminated to member firms
and market data services through the Exchange data feeds.
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    \27\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \28\ Due to systems limitations, the Consolidated Tape will
report intraday execution prices and quotes for Shares using a proxy
price format. Nasdaq has represented that it will separately report
real-time execution prices and quotes to member firms and providers
of market data services in the ``NAV-$0.01/NAV + $0.01'' (or
similar) display format, and will otherwise seek to ensure that
representations of intraday bids, offers, and execution prices for
Shares that are made available to the investing public follow the
same display format.
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    Once the Fund's daily NAV has been calculated and disseminated,
Nasdaq will price each Share trade entered into during the day at the
Fund's NAV plus/minus the trade's executed premium/discount. Using the
final trade price, each executed Share trade will then be disseminated
to member firms and market data services via a File Transfer Protocol
(``FTP'') file \29\ that will be created for exchange-traded managed
funds and will be confirmed to the member firms participating in the
trade to supplement the previously provided information with final
pricing.
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    \29\ According to Nasdaq, FTP is a standard network protocol
used to transfer computer files on the Internet. Nasdaq will arrange
for the daily dissemination of an FTP file with executed Share
trades to member firms and market data services.
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    The Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily (on each day
that the New York Stock Exchange is open for trading) and provided to
Nasdaq via the Mutual Fund Quotation Service (``MFQS'') by the fund
accounting agent. As soon as the NAV is entered into MFQS, Nasdaq will
disseminate the value to market participants and market data vendors
via the Mutual Fund Dissemination Service so that all firms will
receive the NAV per share at the same time.
    The Exchange further represents that it may consider all relevant
factors in exercising its discretion to halt or suspend trading in
Shares. Nasdaq will halt trading in Shares under the conditions
specified in Nasdaq Rule 4120 and in Nasdaq Rule 5745(d)(2)(C).
Additionally, Nasdaq may cease trading Shares if other unusual
conditions or circumstances exist that, in the opinion of Nasdaq, make
further dealings on Nasdaq detrimental to the maintenance of a fair and
orderly market. To manage the risk of a non-regulatory Share trading
halt, Nasdaq has in place back-up processes and procedures to ensure
orderly trading.
    Prior to the commencement of market trading in Shares, the Fund
will be required to establish and maintain a public Web site through
which its current prospectus may be

downloaded.\30\ The Web site will include (directly or through a link
to www.nextshares.com) additional Fund information updated on a daily
basis, including the prior business day's NAV, and the following
trading information for that business day expressed as premiums/
discounts to NAV: (a) Intraday high, low, average, and closing prices
of Shares in Exchange trading; (b) the midpoint of the highest bid and
lowest offer prices as of the close of Exchange trading, expressed as a
premium/discount to NAV (``Closing Bid/Ask Midpoint''); and (c) the
spread between highest bid and lowest offer prices as of the close of
Exchange trading (``Closing Bid/Ask Spread.'').\31\ The Web site will
also contain charts showing the frequency distribution and range of
values of trading prices, Closing Bid/Ask Midpoints, and Closing Bid/
Ask Spreads over time.
---------------------------------------------------------------------------

    \30\ The Exchange represents that the Web site containing this
information will be www.hartfordfunds.com.
    \31\ The Exchange represents that the Web site containing the
Fund's NAV will be www.hartfordfunds.com and that all other
information listed will be made available on www.nextshares.com,
which can be accessed directly and via a link on
www.hartfordfunds.com.
---------------------------------------------------------------------------

    The Exchange represents that all statements and representations
made in the filing regarding: (a) The description of the Fund's
portfolio, (b) limitations on portfolio holdings or reference assets,
(c) dissemination and availability of the reference asset or IIVs, or
(d) the applicability of Exchange listing rules shall constitute
continued listing requirements for listing the Shares on the Exchange.
The issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements.\32\ If the Fund is not in compliance
with the applicable listing requirements, the Exchange will commence
delisting procedures under Nasdaq Rules 5800, et seq.
---------------------------------------------------------------------------

    \32\ The Commission notes that certain other proposals for the
listing and trading of Managed Fund Shares include a representation
that the exchange will ``surveil'' for compliance with the continued
listing requirements. See, e.g., Securities Exchange Act Release No.
78005 (Jun. 7, 2016), 81 FR 38247 (Jun. 13, 2016) (SR-BATS-2015-
100). In the context of this representation, it is the Commission's
view that ``monitor'' and ``surveil'' both mean ongoing oversight of
a fund's compliance with the continued listing requirements.
Therefore, the Commission does not view ``monitor'' as a more or
less stringent obligation than ``surveil'' with respect to the
continued listing requirements.
---------------------------------------------------------------------------

    This approval order is based on all of the Exchange's
representations, including those set forth above, in the Notice, and
Amendment Nos. 3 and 4,\33\ and the Exchange's description of the Fund.
The Commission notes that the Fund and the Shares must comply with the
requirements of Nasdaq Rule 5745 and the conditions set forth in this
proposed rule change to be listed and traded on the Exchange on an
initial and continuing basis.
---------------------------------------------------------------------------

    \33\ See supra notes 3 and 4.
---------------------------------------------------------------------------

    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment Nos. 3 and 4, is consistent with
Section 6(b)(5) \34\ and Section 11A(a)(1)(C)(iii) of the Act \35\ and
the rules and regulations thereunder applicable to a national
securities exchange.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78f(b)(5).
    \35\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\36\ that the proposed rule change (SR-NASDAQ-2017-025), as
modified by Amendment Nos. 3 and 4, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
---------------------------------------------------------------------------

    \37\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09420 Filed 5-9-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 72 (Monday, April 15, 2013)]
[Notices]
[Pages 22350-22353]
[FR Doc No: 2013-08727]

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

[Release No. 34-69356; File No. SR-ICC-2013-05]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Order Granting Accelerated Approval of a Proposed Rule
Change, as Modified by Amendment No. 1, Related to Regulatory Reporting
of Swap Data

April 9, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act''),\1\ and Rule 19b-4,\2\ notice is hereby given that
on March 25, 2013, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change, as modified by Amendment No. 1,\3\ and as described in Items I
and II below, which Items have been substantially prepared by the
clearing agency. The Commission is publishing this notice and order to
solicit comments on the proposed rule change from interested persons
and to approve the proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ ICC filed Amendment No. 1 to ICC-2013-05 on April 8, 2013.
In Amendment No. 1, ICC amended Form 19b-4 and Exhibit 1 to include
references to Commodity Futures Trading Commission Regulation 45.3.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    ICC proposes to add, in Chapter 2 of the ICC Rules, Rule 211
(Regulatory Reporting of Swap Data). ICC proposes to add Rule 211 in
order to implement swap data repository (``SDR'') reporting (``SDR
Reporting'') consistent with the Commodity Futures Trading Commission
(``CFTC'') Regulations relating to the regulatory reporting of swap
data, specifically Part 45 of CFTC Regulations (``Part 45'').\4\ ICC
currently complies with the CFTC's Regulations relating to the
regulatory reporting of swap data by reporting to
IntercontinentalExchange, Inc.'s SDR, selected by ICC. In order to
codify ICC's practice of reporting relevant Part 45 data to the SDR
selected by ICC, which is intended to meet ICC's and its Clearing
Participants' swap data reporting obligations under Part 45, ICC
proposes to add, in Chapter 2 of the ICC Rules, Rule 211 (Regulatory
Reporting of Swap Data).
---------------------------------------------------------------------------

    \4\ 17 CFR 45.
---------------------------------------------------------------------------

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

    In its filing with the Commission, the clearing agency included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item III below. The clearing agency has prepared
summaries, set forth in sections A, B, and C below, of the most
significant aspects of such statements.\5\
---------------------------------------------------------------------------

    \5\ The Commission has modified the text of the summaries
prepared by the clearing agency.
---------------------------------------------------------------------------

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    ICC proposes to add, in Chapter 2 of the ICC Rules, Rule 211 in
order to implement SDR Reporting consistent with CFTC Regulations
45.3,\6\ 45.4(b),\7\ and 45.9.\8\ Proposed ICC Rule 211 states that for
the purposes of complying with applicable CFTC rules governing the
regulatory reporting of swaps, ICC will report all creation and
continuation data to IntercontinentalExchange, Inc.'s SDR. In addition,
proposed ICC Rule 211 provides that, upon the request of an ICC
Clearing Participant that is a counterparty to a swap cleared at ICC,
ICC shall provide the same creation and continuation data to the SDR
selected by the Clearing Participant.
---------------------------------------------------------------------------

    \6\ 17 CFR 45.3.
    \7\ 17 CFR 45.4(b).
    \8\ 17 CFR 45.9.
---------------------------------------------------------------------------

    Proposed Rule 211 is consistent with the CFTC's Regulation 45.3 \9\
and 45.4(b),\10\ which requires that creation and continuation data
must be reported by both the derivatives clearing organization and the
reporting counterparty. ICC currently complies with the CFTC's
Regulation 45.3 \11\ and 45.4(b) \12\ by reporting swap data to
IntercontinentalExchange, Inc.'s SDR selected by ICC. In order to
codify ICC's practice of reporting relevant Part 45 data to the SDR
selected by ICC, ICC proposes to add, in Chapter 2 of the ICC Rules,
Rule 211 (Regulatory Reporting of Swap Data).
---------------------------------------------------------------------------

    \9\ 17 CFR 45.3.
    \10\ 17 CFR 45.4(b).
    \11\ 17 CFR 45.3.
    \12\ 17 CFR 45.4(b).
---------------------------------------------------------------------------

    The addition of ICC Rule 211 also is in response to swap dealers'
mandatory compliance with CFTC Regulation 45.3 \13\ and 45.4,\14\ which
was required by February 28, 2013. ICC believes that proposed ICC Rule
211 is also consistent

with the CFTC's Regulation 45.9,\15\ which provides that swap
counterparties required by Part 45 to report swap creation or
continuation data may contract with third-party service providers to
facilitate reporting. Proposed ICC Rule 211 ensures that ICC, in the
capacity of a third-party service provider, will be able to report
required swap creation and continuation data on behalf of ICC's
Clearing Participants, in compliance with the Clearing Participants'
reporting obligations under CFTC's swap data reporting Regulations.
---------------------------------------------------------------------------

    \13\ 17 CFR 45.3.
    \14\ 17 CFR 45.4.
    \15\ 17 CFR 45.9.
---------------------------------------------------------------------------

    ICC believes that proposed ICC Rule 211 is consistent with the
requirements of Section 17A of the Exchange Act \16\ and the rules and
regulations thereunder applicable to it. Specifically, ICC believes the
proposed rule is consistent with Section 17A(b)(3)(F) of the Exchange
Act,\17\ which requires, among other things, that the rules of a
clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions and, to the extent
applicable, derivative agreements, contracts, and transactions, to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible, and to protect investors and the public interest. As a
derivatives clearing organization registered with the CFTC, ICC must
comply with CFTC Regulations, including CFTC Regulation 45.3 \18\ and
45.4.\19\ ICC believes this proposed rule change will facilitate its
own and its Clearing Participants' mandatory compliance with CFTC
Regulation 45.3 \20\ and 45.4.\21\ ICC believes that the proposed rule
change is consistent with the requirements of the Exchange Act and the
rules and regulations thereunder applicable to ICC, in particular with
Section 17A(b)(3)(F), because facilitating clearing members' reporting
obligations promotes the prompt and accurate clearance and settlement
of securities transactions and the safeguarding of securities and
funds, and compliance with the CFTC's regulations facilitates the
protection of investors and the public interest. In addition, ICC notes
that the proposed change is limited to ICC's business as a derivatives
clearing organization and therefore does not significantly affect any
securities clearing operations of the clearing agency or any related
rights or obligations of the clearing agency or persons using such
service. For these reasons, ICC believes the proposed rule is
consistent with the requirements of Section 17A(b)(3)(F) of the
Exchange Act.\22\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78q-1.
    \17\ 15 U.S.C. 78q-1(b)(3)(F).
    \18\ 17 CFR 45.3.
    \19\ 17 CFR 45.4.
    \20\ 17 CFR 45.3.
    \21\ 17 CFR 45.4.
    \22\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received from Members, Participants, or Others

    Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.

III. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form
    (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-ICC-2013-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ICC-2013-05. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of ICC.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-ICC-2013-05
and should be submitted on or before May 6, 2013.

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

    Section 19(b)(2)(C) of the Exchange Act \23\ directs the Commission
to approve a proposed rule change of a self-regulatory organization if
it finds that such proposed rule change is consistent with the
requirements of the Exchange Act and the rules and regulations
thereunder applicable to such organization. The Commission finds that
the proposed rule change is consistent with the requirements of the
Exchange Act, in particular, the requirements of Section 17A of the
Exchange Act, and the rules and regulations thereunder applicable to
ICC.\24\ Specifically, the Commission finds that the proposed rule
change is consistent with Section 17A(b)(3)(F) of the Exchange Act,\25\
which requires, among other things, that the rules of a clearing agency
be designed to promote the prompt and accurate clearance and settlement
of securities transactions and, to the extent applicable, derivative
agreements, contracts, and transactions, to assure the safeguarding of
securities and funds which are in the custody or control of the
clearing agency or for which it is responsible, and to protect
investors and the public interest.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(2)(C).
    \24\ 15 U.S.C. 78q-1.
    \25\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Based on ICC's representations, the Commission understands that the
proposed rule change is designed to codify in ICC's Rules the way in
which ICC intends to comply with certain of the CFTC's swap data
reporting rules and to facilitate its Clearing Participants' compliance
with the same. The Commission finds that, by facilitating compliance
with the swap data reporting requirements of another

regulator, the proposed rule change is consistent with promoting the
prompt and accurate clearance and settlement of derivative agreements,
contracts, and transactions, assuring the safeguarding of securities
and funds which are in the custody or control of the clearing agency or
for which it is responsible, and protecting investors and the public
interest.
    The Commission is mindful of the CFTC's jurisdiction respecting
swap data reporting and swap data repositories under the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 (``Dodd-Frank
Act'').\26\ The proposed rule change, which is limited to ICC's
business as a derivatives clearing organization and does not
significantly affect any securities clearing operations of the clearing
agency or any rights or obligations of the clearing agency with respect
to securities clearing or persons using such securities-clearing
service,\27\ applies only to swaps, which are regulated by the CFTC
under the CEA. In this regard, the Commission notes that section
5b(c)(2)(N) of the CEA requires that ``[u]nless necessary or
appropriate to achieve the purposes of [the CEA], a derivatives
clearing organization shall not--(i) adopt any rule or take any action
that results in any unreasonable restraint of trade; or (ii) impose any
material anticompetitive burden.'' \28\ Section 17A(b)(3)(I) of the
Exchange Act, by contrast, requires that ``[t]he rules of the clearing
agency do not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of [the Exchange Act].''
\29\ To the extent that the Exchange Act provisions on competition
apply to swaps-related activity, the Commission finds that the proposed
rule change does not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Exchange Act.\30\ In
making this determination, the Commission is mindful of the CFTC's
jurisdiction over swap activities, and the Commission could draw a
different conclusion about a similar proposal if it applied to
security-based swap activity instead of swap activity.
---------------------------------------------------------------------------

    \26\ Public Law 111-203, 124 Stat. 1376 (2010). Title VII of the
Dodd-Frank Act gives the CFTC regulatory authority over swaps,
including the authority to adopt rules governing SDRs and swap
reporting. See, e.g., Pub. L. No. 111-203, Sec.  727. Similarly,
Title VII gives the SEC regulatory authority over security-based
swaps and the authority to adopt rules governing security-based swap
data repositories and security-based swap reporting. See, e.g., Pub.
L. No. 111-203, Sec.  763(i).
    \27\ Cf. Amendment to Rule Filing Requirements for Dually-
Registered Clearing Agencies, Securities Exchange Act Rel. No. 69284
(Apr. 3, 2013), 78 FR 21046 (Apr. 9, 2013) (amending the
Commission's rule filing process in connection with proposed rule
changes that primarily affect a registered clearing agency's
clearing operations with respect to products that are not securities
and that do not significantly affect any securities clearing
operations or any rights or obligations of the clearing agency with
respect to securities clearing or persons using such securities
service; effective 60 days from forthcoming publication in the
Federal Register).
    \28\ 7 U.S.C. 7a-1(c)(2)(N).
    \29\ 15 U.S.C. 78q-1(b)(3)(I).
    \30\ In approving these proposed rule changes, the Commission
has considered the proposed rule change's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    In its filing, ICC requested that the Commission grant accelerated
approval of the proposed rule change under Section 19(b)(2)(C)(iii) of
the Exchange Act.\31\ Under Section 19(b)(2)(C)(iii) of the Exchange
Act,\32\ the Commission may grant accelerated approval of a proposed
rule change if the Commission finds good cause for doing so. ICC
believes that accelerated approval is warranted because the proposed
rule change will assist swap dealers' mandatory compliance with CFTC
Regulation 45.3 \33\ and 45.4,\34\ which was required by February 28,
2013. ICC states that the proposed rule change does not require any
operational changes, as ICC currently complies with the CFTC's
Regulations relating to the regulatory reporting of swap data by
reporting to IntercontinentalExchange, Inc.'s SDR, selected by ICC. ICC
notes that the proposed change is limited to ICC's business as a
derivatives clearing organization and therefore does not significantly
affect any securities clearing operations of the clearing agency or any
related rights or obligations of the clearing agency or persons using
such service. ICC has stated that, in its view, the proposed changes do
not raise any issues that would require a lengthier review process
under Section 19(b) of the Exchange Act,\35\ and ICC does not believe
the market would benefit from delaying implementation of the proposed
rule changes.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2)(C)(iii).
    \32\ 15 U.S.C. 78s(b)(2)(C)(iii).
    \33\ 17 CFR 45.3.
    \34\ 17 CFR 45.4.
    \35\ 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

    The Commission finds good cause, pursuant to Section
19(b)(2)(C)(iii) of the Exchange Act,\36\ for approving the proposed
rule change on an accelerated basis, prior to the 30th day after the
date of publication of notice in the Federal Register, because (i) the
proposed rule change is limited to ICC's business as a derivatives
clearing organization and does not significantly affect any securities
clearing operations of the clearing agency or any rights or obligations
of the clearing agency with respect to securities clearing or persons
using such securities-clearing service; and (ii) the activity relating
to the non-securities clearing operations of the clearing agency for
which the clearing agency is seeking approval is subject to regulation
by another federal regulator.\37\
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78s(b)(2)(C)(iii).
    \37\ See supra note 27.
---------------------------------------------------------------------------

    The Commission notes that ICC also has submitted ICC Rule 211 to
the CFTC for self-certification pursuant to Section 5c(c)(1) of the
Commodity Exchange Act (``CEA'') \38\ and CFTC Regulation 40.6.\39\ In
connection with ICC's submission, the CFTC received a petition for the
stay of ICC's self-certification of ICC Rule 211 from the Depository
Trust & Clearing Corporation (``DTCC''), in conjunction with DTCC Data
Repository (U.S.) LLC.\40\ In its submission to the CFTC, ICC also made
reference to the CFTC's comment files relating to the submission by the
Chicago Mercantile Exchange Inc. (``CME'') of CME Rule 1001 to the CFTC
and ``relevant references within the Statement of the [CFTC] granting
approval of the CME's Rule 1001 submission.'' \41\
---------------------------------------------------------------------------

    \38\ 7 U.S.C. 7a-2(c)(5).
    \39\ 17 CFR 40.6.
    \40\ Letter to Ms. Melissa Jurgens, CFTC, from Larry E.
Thompson, General Counsel, DTCC, dated March 26, 2013, available at
<EMAIL_ADDRESS>    \41\ ICC Rule Submission Re: SDR Reporting Rule Certification
Pursuant to Section 5c(c)(1) of the CEA and [CFTC] Regulation 40.6,
dated March 22, 2013, available at<EMAIL_ADDRESS>---------------------------------------------------------------------------

    As noted above, in its consideration and approval of the proposed
rule change, the Commission is mindful of the CFTC's jurisdiction
respecting swap data reporting and swap data repositories under the
Dodd-Frank Act.\42\ The Commission's approval of the proposed rule
change in no way constitutes a determination or finding by the
Commission that the proposed rule change complies with or is not
inconsistent with the CEA or the rules and regulation thereunder, which
are determinations within the purview of the CFTC. The Commission's
approval is limited to findings under the Exchange Act and the rules
and regulations thereunder in effect on the date hereof and represents
neither agreement nor disagreement with the CFTC's analysis and
determinations in connection with its Statement approving CME Rule 1001
or other actions to-date respecting CME's or

ICC's rules relating to swap data reporting. Furthermore, the
Commission's approval of the proposed rule change in no way limits or
precludes any future actions by the Commission, including pending
rulemakings \43\ or proposed rule changes, in connection with security-
based swaps.
---------------------------------------------------------------------------

    \42\ See supra note 26.
    \43\ See, e.g., Regulation SBSR--Reporting and Dissemination of
Security-Based Swap Information, Securities Exchange Act Rel. No.
63346 (Nov. 19, 2010), 75 FR 75208 (Dec. 2, 2010); Security-Based
Swap Data Repository Registration, Duties, and Core Principles,
Securities Exchange Act Release No. 63347 (Nov. 19, 2010), 75 FR
77306 (Dec. 10, 2010), corrected at 75 FR 79320 (Dec. 20, 2010) and
76 FR 2287 (Jan. 13, 2011).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) of the
Exchange Act \44\ that the proposed rule change (SR-ICC-2013-05), as
modified by Amendment No. 1, be, and hereby is, approved on an
accelerated basis.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
---------------------------------------------------------------------------

    \45\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-08727 Filed 4-12-13; 8:45 am]
BILLING CODE P


[Federal Register: July 10, 2006 (Volume 71, Number 131)]
[Notices]
[Page 38870]
[DOCID:fr10jy06-40]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER06-24-001, EL06-79-000]

California Independent System Operator Corporation; Notice of
Institution of Proceeding and Refund Effective Date

June 30, 2006.
    On June 29, 2006, the Commission issued an order that instituted a
proceeding in Docket No. EL06-79-000, pursuant to section 206 of the
Federal Power Act (FPA), 16 U.S.C. 824e (2005), concerning the terms
and conditions of the California Independent System Operator
Corporation's Responsible Participating Transmission Owner Agreement
(RPTOA), as amended. California Independent System Operator
Corporation, 115 FERC ] 61,385 (2006).
    The refund effective date in Docket No. EL06-79-000, established
pursuant to section 206(b) of the FPA, will be the date of publication
of this notice in the Federal Register.

Magalie R. Salas,
Secretary.
[FR Doc. E6-10692 Filed 7-7-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 178 (Tuesday, September 15, 2015)]
[Rules and Regulations]
[Pages 55228-55229]
[FR Doc No: 2015-23100]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2015-1483; Special Conditions No. 25-598-SC]

Special Conditions: Gulfstream Aerospace Corporation Model GVII-
G500 Airplanes; Limit Engine Torque Loads

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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SUMMARY: These special conditions are issued for the Gulfstream Model
GVII-G500 airplane. These airplanes have a novel or unusual design
feature as compared to the state of technology envisioned in the
airworthiness standards for transport category airplanes. This design
feature includes engine size and the potential torque loads imposed by
sudden engine stoppage. The applicable airworthiness regulations do not
contain adequate or appropriate safety standards for this design
feature. These special conditions contain the additional safety
standards that the Administrator considers necessary to establish a
level of safety equivalent to that established by the existing
airworthiness standards.

DATES: The effective date of these special conditions is September 15,
2015. We must receive your comments by October 30, 2015.

ADDRESSES: Send comments identified by docket number FAA-2015-1483
using any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov/.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Walt Sippel, FAA, Airframe and Cabin
Safety Branch, ANM-115, Transport Airplane Directorate, Aircraft
Certification Service, 1601 Lind Avenue SW., Renton, Washington 98057-
3356; telephone<PHONE_NUMBER>; facsimile<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA has determined that notice of, and
opportunity for, prior public comment on these special conditions are
impracticable because these procedures would significantly delay
issuance of the design approval and thus delivery of the affected
airplane.
    In addition, the substance of these special conditions has been
subject to the public-comment process in several prior instances with
no substantive comments received. The FAA therefore finds that good
cause exists for making these special conditions effective upon
issuance.

Comments Invited

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

Background

    On March 29, 2012, Gulfstream Aerospace Corporation applied for a
type certificate for their new Model GVII-G500 airplane.
    The GVII airplane is a large-cabin business jet with seating for 19
passengers. It incorporates a low, swept-wing design with winglets and
a T-tail. The Model GVII-G500 airplane is powered by two aft-fuselage-
mounted Pratt & Whitney turbofan engines. Avionics will include four
primary display units and multiple touchscreen controllers. The flight-
control system is a three-axis fly-by-wire system controlled by active
control/coupled side sticks.
    The Model GVII-G500 airplane wingspan is approximately 87 ft with a
length of just over 91 ft. Maximum takeoff weight will be approximately
76,850 lbs and maximum takeoff thrust will be approximately 15,135 lbs.
Maximum range will be approximately 5,000 nm and maximum operating
altitude will be 51,000 ft.

Type Certification Basis

    Under the provisions of Title 14, Code of Federal Regulations (14
CFR) 21.17, Gulfstream Aerospace Corporation must show that the Model
GVII-500 airplane meets the applicable provisions of part 25, as
amended by Amendments 25-1 through 25-137 thereto.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Model GVII-G500 airplane because
of a novel or unusual design feature, special conditions are prescribed
under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same or similar
novel or unusual design feature, the special conditions would also
apply to the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Model GVII-G500 airplane must comply with the fuel-vent
and exhaust-emission requirements of 14 CFR part 34 and the noise-
certification requirements of 14 CFR part 36.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of

the type-certification basis under Sec.  21.17(a)(2).

Novel or Unusual Design Features

    The Model GVII-G500 airplane will incorporate the following novel
or unusual design features: Large-bypass engines capable of larger and
more complex dynamic loads than were envisioned when the 14 CFR
25.361(b) rule was developed in 1957, thereby requiring issuance of
special conditions to establish appropriate design standards for the
Model GVII-G500 airplane.

Discussion

    The limit engine torque load imposed by sudden engine stoppage due
to malfunction or structural failure (such as a compressor jamming) has
been a specific requirement for transport-category airplanes since
1957. In the past, the design torque loads associated with typical
failure scenarios have been estimated by the engine manufacturer and
were provided to the airframe manufacturer as limit loads. These limit
loads were considered simple, pure-torque static loads.
    It is evident from service history that the engine-failure events
that tend to cause the most severe loads are fan-blade failures, and
these events occur much less frequently than the typical ``limit'' load
condition.
    To maintain the level of safety envisioned by Sec.  25.361(b), more
comprehensive criteria are required for the new generation of high-
bypass engines. These special conditions distinguish between the more
common engine-failure events and those rare events resulting from
structural failures. The more-common events are regarded as static
torque limit load conditions. The more-severe events resulting from
extreme engine-failure conditions (such as loss of a full fan blade at
redline speed) are regarded as full dynamic load conditions. These are
considered ultimate loads, and include all transient loads associated
with the event. An additional safety factor is applied to the more-
critical airframe supporting structure.

Applicability

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

Conclusion

    This action affects only certain novel or unusual design features
on one model series of airplane. It is not a rule of general
applicability.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

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

The Special Conditions

    Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for the Gulfstream Aerospace Corporation
Model GVII-G500 airplane.
    In lieu of Sec.  25.361(b) the following special conditions apply:
    1. For turbine engine installations, the engine mounts, pylons, and
adjacent supporting airframe structure must be designed to withstand 1g
level flight loads acting simultaneously with the maximum limit torque
loads imposed by each of the following:
    a. Sudden engine deceleration due to a malfunction that could
result in a temporary loss of power or thrust, and
    b. The maximum acceleration of the engine.
    2. For auxiliary power unit (APU) installations, the power unit
mounts and adjacent supporting airframe structure must be designed to
withstand 1g level-flight loads acting simultaneously with the maximum
limit torque loads imposed by each of the following:
    a. Sudden APU deceleration due to malfunction or structural
failure; and
    b. The maximum acceleration of the APU.
    3. For engine supporting structure, an ultimate loading condition
must be considered that combines 1g flight loads with the transient
dynamic loads resulting from:
    a. The loss of any fan, compressor, or turbine blade; and
separately,
    b. Where applicable to a specific engine design, any other engine
structural failure that results in higher loads.
    4. The ultimate loads developed from the conditions specified in
special conditions 3(a) and 3(b), above, are to be multiplied by a
factor of 1.0 when applied to engine mounts and pylons, and multiplied
by a factor of 1.25 when applied to adjacent supporting airframe
structure.
    5. Any permanent deformation that results from the conditions
specified in special condition 3, above, must not prevent continued
safe flight and landing.

    Issued in Renton, Washington, on September 1, 2015.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-23100 Filed 9-14-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 132 (Wednesday, July 10, 2013)]
[Rules and Regulations]
[Pages 41286-41289]
[FR Doc No: 2013-15335]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2012-1035; Directorate Identifier 2011-NM-235-AD;
Amendment 39-17492; AD 2013-13-04]
RIN 2120-AA64

Airworthiness Directives; Airbus Airplanes

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

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain

Airbus Model A318, A319, A320, and A321 series airplanes. This AD was
prompted by a report of an uncommanded nose landing gear (NLG)
retraction. This AD requires installing a power interruption protection
circuit for the landing gear control interface unit (LGCIU). We are
issuing this AD to prevent untimely unlocking and/or retraction of the
NLG, which, while on the ground, could result in injury to ground
personnel and damage to the airplane.

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

ADDRESSES: You may examine the AD docket on the Internet at http://www.regulations.gov or in person at the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Sanjay Ralhan, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue SW., Renton, WA 98057-3356; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
The NPRM was published in the Federal Register on October 3, 2012 (77
FR 60331). The NPRM proposed to correct an unsafe condition for the
specified products. The European Aviation Safety Agency (EASA), which
is the aviation authority for the Member States of the European
Community, has issued EASA Airworthiness Directive 2011-0202, dated
October 13, 2011 (referred to after this as the Mandatory Continuing
Airworthiness Information, or ``the MCAI''), to correct an unsafe
condition for the specified products.
    The MCAI states:

    After a push back from the gate, an A320 aeroplane was preparing
to initiate taxi, when an uncommanded nose landing gear (NLG)
retraction occurred, causing the nose of the aeroplane to hit the
ground. Investigations revealed that the retraction was caused by a
combination of a power interruption to LGCIUs [landing gear control
interface unit] and an internal hydraulic leak through the landing
gear (LG) selector valve 40GA.
    Deeper investigations have revealed that LGCIU power
interruption appears during engine start at each flight. Even though
no incident has been reported in service, it has been determined
that a non compliance to the safety objective exists when combined
with a dormant single failure of the selector valve seal leaking.
    This condition, if not corrected, could lead to further
incidents of untimely unlocking and/or retraction of the NLG which,
while on the ground, could result in injury to ground personnel and
damage to the aeroplane.
    To address the possible hydraulic leak of the LG selector valve,
EASA issued AD 2007-0065, currently at Revision 2.
    For the reasons described above, this [EASA] AD requires
installation of a power interruption protection circuit to the LGCIU
and the accomplishment of associated modifications [installation of
new seals on nose landing gear (NLG)/main landing gear (MLG) door
valve selector and gear valve-selector and for certain airplanes,
re-identification of identification plates].

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

Comments

    We gave the public the opportunity to participate in developing
this AD. We have considered the comments received.

Request To Reference Latest Service Information

    Airbus requested that we refer to Mandatory Service Bulletin A320-
32-1346, Revision 05, including Appendices 01 and 02, dated January 13,
2012. US Airways and Virgin America requested that the NPRM (77 FR
60331, October 3, 2012) mandate this revision in lieu of Airbus
Mandatory Service Bulletin A320-32-1346, Revision 04, including
Appendices 01 and 02, dated April 22, 2011.
    We disagree with the requests. We reviewed Airbus Mandatory Service
Bulletin A320-32-1346, Revision 05, including Appendices 01 and 02,
dated January 13, 2012. Revision 05 requires additional work such as
changes to the part number of a placard and adds a test of a battery
relay. Therefore, referring to that revision of the service information
in the final rule would require issuance of a supplemental NPRM. In
light of this, and in the interest of the safety of the flying public,
we will reference the service information that was referenced in the
proposed NPRM (77 FR 60331, October 3, 2012) so as to not delay
issuance of this final rule. Airbus or affected operators may, however,
request approval to use a later revision of referenced service
information as an alternative method of compliance (AMOC) in accordance
with the procedures specified in paragraph (j) of this AD. We have not
changed the AD in this regard.

Conclusion

    We reviewed the available data, including the comments received,
and determined that air safety and the public interest require adopting
the AD as proposed--except for minor editorial changes. We have
determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM (77 FR 60331, October 3, 2012) for correcting the unsafe
condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM (77 FR 60331, October 3, 2012).

Costs of Compliance

    We estimate that this AD will affect 755 products of U.S. registry.
We also estimate that it will take about 48 work-hours per product to
comply with the basic requirements of this AD. The average labor rate
is $85 per work-hour. Required parts will cost about $8,220 per
product. Where the service information lists required parts costs that
are covered under warranty, we have assumed that there will be no
charge for these parts. As we do not control warranty coverage for
affected parties, some parties may incur costs higher than estimated
here. Based on these figures, we estimate the cost of this AD to the
U.S. operators to be up to $9,286,500, or up to $12,300 per product.

Regulatory Findings

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

Examining the AD Docket

    You may examine the AD docket on the Internet at http://

www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains the AD, the regulatory evaluation, any
comments received, and other information. The street address for the
Docket Operations office (telephone<PHONE_NUMBER>) is in the ADDRESSES
section. Comments will be available in the AD docket shortly after
receipt.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2013-13-04 Airbus: Amendment 39-17492. Docket No. FAA-2012-1035;
Directorate Identifier 2011-NM-235-AD.

(a) Effective Date

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

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Airbus Model A318-111, A318-112, A318-121,
A318-122, A319-111, A319-112, A319-113, A319-114, A319-115, A319-
131, A319-132, A319-133, A320-111, A320-211, A320-212, A320-214,
A320-231, A320-232, A320-233, A321-111, A321-112, A321-131, A321-
211, A321-212, A321-213, A321-231, and A321-232 airplanes;
certificated in any category; all manufacturer serial numbers,
except airplanes on which Airbus modification 37866 has been
embodied in production.

(d) Subject

    Air Transport Association (ATA) of America Code 32: Landing
Gear.

(e) Reason

    This AD was prompted by a report of an uncommanded nose landing
gear (NLG) retraction. We are issuing this AD to prevent untimely
unlocking and/or retraction of the NLG, which, while on the ground,
could result in injury to ground personnel and damage to the
airplane.

(f) Compliance

    You are responsible for having the actions required by this AD
performed within the compliance times specified, unless the actions
have already been done.

(g) Modification

    At the applicable compliance time specified in paragraph (g)(1)
or (g)(2) of this AD: Install a power interruption protection
circuit for the landing gear control interface unit (LGCIU), in
accordance with the Accomplishment Instructions of Airbus Service
Bulletin A320-32-1346, Revision 04, including Appendices 01 and 02,
dated April 22, 2011 (for Model A318, A319, A320, and A321 series
airplanes other than the Model A319CJ (corporate jet) airplanes); or
Airbus Service Bulletin A320-32-1349, Revision 03, including
Appendix 1, dated October 5, 2011 (for Model A319CJ (corporate jet)
airplanes).
    (1) For airplanes that have embodied Airbus modification 38947
specified in Airbus Service Bulletin A320-32-1348 during production
or in service: Within 72 months after the effective date of this AD.
    (2) For all airplanes other than those identified in paragraph
(g)(1) of this AD: Within 60 months after the effective date of this
AD.

(h) Re-Identification of Identification Plates

    For airplanes on which the installation required by paragraph
(g) of this AD have been done before the effective date of this AD
using Airbus Service Bulletin A320-32-1346, dated December 4, 2008
(for Model A318, A319, A320, and A321 series airplanes other than
Model A319CJ (corporate jet) airplanes): Within the applicable times
specified in paragraphs (g)(1) and (g)(2) of this AD, re-identify
the identification plates, in accordance with the Accomplishment
Instructions of Airbus Service Bulletin A320-32-1346, Revision 04,
including Appendices 01 and 02, dated April 22, 2011 (for Model
A318, A319, A320, and A321 series airplanes other than Model A319CJ
(corporate jet) airplanes).

(i) Credit for Previous Actions

    This paragraph provides credit for the actions required by
paragraph (g) of this AD, if those actions were performed before the
effective date of this AD using the service information specified in
paragraphs (i)(1) through (i)(6) of this AD, which are not
incorporated by reference in this AD.
    (1) Airbus Service Bulletin A320-32-1346, Revision 01, dated
October 27, 2009 (for Model A318, A319, A320, and A321 series
airplanes).
    (2) Airbus Service Bulletin A320-32-1346, Revision 02, dated
November 4, 2009 (for Model A318, A319, A320, and A321 series
airplanes).
    (3) Airbus Service Bulletin A320-32-1346, Revision 03, dated
January 7, 2010 (for Model A318, A319, A320, and A321 series
airplanes).
    (4) Airbus Service Bulletin A320-32-1349, dated December 4, 2008
(for Model A319CJ (corporate jet) airplanes).
    (5) Airbus Service Bulletin A320-32-1349, Revision 01, dated
August 31, 2009, (for Model A319CJ (corporate jet) airplanes).
    (6) Airbus Service Bulletin A320-32-1349, Revision 02, dated
June 16, 2010 (for Model A319CJ (corporate jet) airplanes).

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, ANM-
116, International Branch, Transport Airplane Directorate, FAA, has
the authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the International Branch, send it to ATTN: Sanjay
Ralhan, Aerospace Engineer, International Branch, ANM-116, Transport
Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057-
3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Information may
be emailed to<EMAIL_ADDRESS>Before using any
approved AMOC, notify your appropriate principal inspector, or
lacking a principal inspector, the manager of the local flight
standards district office/certificate holding district office. The
AMOC approval letter must specifically reference this AD.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.

(k) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) European Aviation Safety Agency Airworthiness Directive 2011-
0202, dated October 13, 2011, for related information. This MCAI may
be viewed on the Internet at http://ad.easa.europa.eu/blob/easa_ad_2011_0202.pdf.
    (2) Service information identified in this AD that is not
incorporated by reference may be obtained at the addresses specified
in paragraphs (l)(3) and (l)(4) of this AD. (l)

Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Airbus Service Bulletin A320-32-1346, Revision 04, including
Appendices 01 and 02, dated April 22, 2011.
    (ii) Airbus Service Bulletin A320-32-1349, Revision 03,
including Appendix 1, dated October 5, 2011.
    (3) For service information identified in this AD, contact
Airbus, Airworthiness Office--EIAS, 1 Rond Point Maurice Bellonte,
31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5
61 93 44 51; email<EMAIL_ADDRESS>Internet http://www.airbus.com.
    (4) You may review copies of the service information at the FAA,
Transport Airplane

Directorate, 1601 Lind Avenue SW., Renton, WA. For information on
the availability of this material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on June 14, 2013.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2013-15335 Filed 7-9-13; 8:45 am]
BILLING CODE 4910-13-P