[Federal Register Volume 86, Number 221 (Friday, November 19, 2021)]
[Rules and Regulations]
[Pages 64810-64813]
[FR Doc No: 2021-25259]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0781; Project Identifier AD-2021-00775-E;
Amendment 39-21831; AD 2021-24-10]
RIN 2120-AA64

Airworthiness Directives; Austro Engine GmbH Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: The FAA is superseding Airworthiness Directive (AD) 2021-09-04
for all Austro Engine GmbH E4 and E4P model diesel piston engines. AD
2021-09-04 required replacing a certain oil pump as well as the oil
filter and engine oil. This AD was prompted by reports of an oil pump
blockage on E4 model diesel piston engines. This AD requires replacing
a certain oil pump as well as the oil filter and engine oil. The FAA is
issuing this AD to address the unsafe condition on these products.

DATES: This AD is effective December 27, 2021.
    The Director of the Federal Register approved the incorporation by
reference of a certain other publication listed in this AD as of May
10, 2021 (86 FR 21637, April 23, 2021).

ADDRESSES: For service information identified in this final rule,
contact Austro Engine GmbH, Rudolf-Diesel-Strasse 11, 2700 Weiner
Neustadt, Austria; phone: +43 2622 23000; website: www.austroengine.at.
You may view this service information at the Airworthiness Products
Section, Operational Safety Branch, FAA, 1200 District Avenue,
Burlington, MA 01803. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>. It is also available at
https://www.regulations.gov by searching for and locating Docket No.
FAA-2021-0781.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2021-0781; or in person at
Docket Operations between 9 a.m. and 5 p.m.,

Monday through Friday, except Federal holidays. The AD docket contains
this final rule, any comments received, and other information. The
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Wego Wang, Aviation Safety Engineer,
ECO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone:
(781) 238-7134; fax:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 to supersede AD 2021-09-04, Amendment 39-21517 (86 FR
21637, April 23, 2021), (AD 2021-09-04). AD 2021-09-04 applied to all
Austro Engine GmbH E4 and E4P model diesel piston engines. The NPRM
published in the Federal Register on September 14, 2021 (86 FR 51026).
The NPRM was prompted by reports of an oil pump blockage on E4 model
diesel piston engines caused by oil contamination with casting sand
from the production process of oil pump part number (P/N) E4A-50-000-
BHY. The root cause was found to be an improperly performed sand casted
oil pump housing cleaning process. In the NPRM, the FAA proposed to
continue to require replacement of an affected oil pump, identified by
P/N and serial number (S/N) in Austro Engine GmbH Mandatory Service
Bulletin No. MSB-E4-030/4, Revision No. 4, dated March 30, 2021. In the
NPRM, the FAA also proposed to require replacement of the oil filter
and engine oil.

Discussion of Final Airworthiness Directive

Comments

    The FAA received no comments on the NPRM or on the determination of
the costs.

Conclusion

    The FAA reviewed the relevant data and determined that air safety
requires adoption of the AD as proposed. Accordingly, the FAA is
issuing this AD to address the unsafe condition on these products. This
AD is adopted as proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Austro Engine GmbH Mandatory Service Bulletin No.
MSB-E4-030/4, Revision No. 4, dated March 30, 2021 (the MSB). This
service information specifies procedures for replacing the affected oil
pumps installed on E4 and E4P model diesel piston engines. This service
information also specifies procedures for replacing the oil filter and
engine oil installed on these engines. In addition, this service
information identifies the applicable S/Ns of affected E4 and E4P model
diesel piston engines, the affected oil pumps requiring replacement,
and an additional oil pump replacement option. The Director of the
Federal Register previously approved the MSB for incorporation by
reference on May 10, 2021 (86 FR 21637, April 23, 2021). This service
information is reasonably available because the interested parties have
access to it through their normal course of business or by the means
identified in the ADDRESSES section.

Costs of Compliance

    The FAA estimates that this AD affects 55 engines installed on
airplanes of U.S. registry.
    The FAA estimates the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
               Action                        Labor cost           Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
Remove and replace the oil pump, oil  16 work-hours x $85 per          $1,488           $2,848         $156,640
 filter, and engine oil.               hour = $1,360.
----------------------------------------------------------------------------------------------------------------

    The FAA has included all known costs in its cost estimate.
According to the manufacturer, however, some of the costs of this AD
may be covered under warranty, thereby reducing the cost impact on
affected individuals.

Authority for This Rulemaking

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

Regulatory Findings

    The FAA has 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) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

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:

0
a. Removing Airworthiness Directive 2021-09-04, Amendment 39-21517 (86
FR 21637, April 23, 2021); and
0
b. Adding the following new airworthiness directive:

2021-24-10 Austro Engine GmbH: Amendment 39-21831; Docket No. FAA-
2021-0781; Project Identifier AD-2021-00775-E.

 (a) Effective Date

    This airworthiness directive (AD) is effective December 27,
2021.

(b) Affected ADs

    This AD replaces AD 2021-09-04, Amendment 39-21517 (86 FR 21637,
April 23, 2021).

(c) Applicability

    This AD applies to all Austro Engine GmbH E4 and E4P model
diesel piston engines.

(d) Subject

    Joint Aircraft System Component (JASC) Code 8550, Reciprocating
Engine Oil System.

(e) Unsafe Condition

    This AD was prompted by reports of an oil pump blockage on the
E4 model diesel piston engines. The FAA is issuing this AD to
prevent failure of the engine lubrication system. The unsafe
condition, if not addressed, could result in failure of the engine,
in-flight shutdown, and loss of the airplane.

(f) Compliance

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

(g) Required Actions

    For Austro Engine GmbH E4 and E4P model diesel piston engines
having an oil pump, part number (P/N) E4A-50-000-BHY, with a serial
number (S/N) listed in paragraph 1.2., Engines Affected, of Austro
Engine GmbH Mandatory Service Bulletin No. MSB-E4-030/4, Revision
No. 4, dated March 30, 2021 (the MSB), within the compliance time
specified in Table 1 to paragraph (g) of this AD or before further
flight, whichever occurs later:
    (1) Remove the oil pump, P/N E4A-50-000-BHY, from service and
replace with a part eligible for installation using the
Accomplishment/Instructions, paragraph 2.2.1 or paragraph 2.2.2, of
the MSB, as applicable.
    (2) Replace the oil filter and engine oil using the
Accomplishment/Instructions, paragraph 2.2.1 or paragraph 2.2.2, of
the MSB, as applicable.
BILLING CODE 4910-13-P
[GRAPHIC] [TIFF OMITTED] TR19NO21.576

BILLING CODE 4910-13-C

(h) No Reporting Requirements

    The reporting requirements in the Accomplishment/Instructions,
paragraph 2.2., of the MSB, are not required by this AD.

(i) Installation Prohibition

    After the effective date of this AD, do not install onto any
engine an oil pump, P/N

E4A-50-000-BHY, with an S/N listed in paragraph 1.2., Engines
Affected, of the MSB.

(j) Definitions

    For the purpose of this AD:
    (1) Group 1 engines are E4 model diesel piston engines in
configuration ``-A'' that are installed on single-engine airplanes.
    (2) Group 2 engines are E4 model diesel piston engines in
configuration ``-B'' or ``-C'' and E4P model diesel piston engines
that are installed on twin-engine airplanes.
    (3) A ``part eligible for installation'' is an oil pump with a
P/N and S/N that is not listed in paragraph 1.2., Engines Affected,
of the MSB.

(k) Credit for Previous Actions

    You may take credit for replacing the oil pump, oil filter, and
engine oil required by paragraph (g) of this AD if you performed
these replacements before the effective date of this AD using the
Accomplishment/Instructions, paragraph 2.2., of Austro Engine GmbH
MSB No. MSB-E4-030, Original Issue, dated February 18, 2021;
Revision No. 1, dated February 23, 2021; Revision No. 2, dated March
3, 2021; or Revision No. 3, dated March 18, 2021.

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, ECO Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or local Flight Standards District Office, as
appropriate. If sending information directly to the manager of the
certification office, send it to the attention of the person
identified in paragraph (m) of this AD. Information may be emailed
to: [email protected].
    (2) 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.

(m) Related Information

    For more information about this AD, contact Wego Wang, Aviation
Safety Engineer, ECO Branch, FAA, 1200 District Avenue, Burlington,
MA 01803; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].

(n) 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.
    (3) The following service information was approved for IBR on
May 10, 2021 (86 FR 21637, April 23, 2021).
    (i) Austro Engine GmbH Mandatory Service Bulletin No. MSB-E4-
030/4, Revision No. 4, dated March 30, 2021.
    (ii) [Reserved]
    (4) For service information identified in this AD, contact
Austro Engine GmbH, Rudolf-Diesel-Strasse 11, 2700 Weiner Neustadt,
Austria; phone: +43 2622 23000; website: www.austroengine.at.
    (5) You may view this service information at FAA, Airworthiness
Products Section, Operational Safety Branch, 1200 District Avenue,
Burlington, MA 01803. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.
    (6) 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, email: [email protected], or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on November 15, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-25259 Filed 11-18-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 26 (Wednesday, February 7, 2018)]
[Rules and Regulations]
[Page 5306]
[FR Doc No: 2018-02412]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 11

[Docket No. RM11-6-000]

Annual Update to Fee Schedule for the Use of Government Lands by
Hydropower Licensees; Correction

AGENCY:  Federal Energy Regulatory Commission,DOE.

ACTION:  Correcting amendment.

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SUMMARY:  This document contains corrections to the final rule (RM11-6-
000) which published in the Federal Register on Tuesday, March 7, 2017
(82 FR 12717). The Final Rule provided the annual update to the fee
schedule in Appendix A to Part 11, which lists per-acre rental fees by
county (or other geographic area) for use of government lands by
hydropower licensees and updated Appendix A to Part 11 with the fee
schedule of per-acre rental fees by county (or other geographic area)
from October 1, 2016, through September 30, 2017 (Fiscal Year 2017).

DATES:  Effective February 7, 2018, and is applicable beginning October
1, 2016.

FOR FURTHER INFORMATION CONTACT:  Norman Richardson, Financial
Management Division, Office of the Executive Director, Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202)
502-6219, [email protected].

SUPPLEMENTARY INFORMATION:
    On February 28, 2017, the Commission issued an Annual Update to Fee
Schedule for the Use of Government Lands for Hydropower Licensees in
the above-captioned proceeding. Pursuant to Annual Charges for the Use
of Government Lands in Alaska, Order No. 838, 83 FR 1 (Jan. 2, 2018),
FERC Stats. & Regs. ] 61,281 (2017), this document updates the per-acre
rental fees for the State of Alaska, as reflected in the caption below.

List of Subjects in 18 CFR Part 11

    Public lands.

    Accordingly, 18 CFR part 11 is corrected by making the following
correcting amendment:

PART 11--[AMENDED]

0
1. The authority citation for part 11 continues to read as follows:

    Authority: 16 U.S.C. 792-828c; 42 U.S.C. 7101-7352.

0
2. Appendix A to Part 11 is amended by:
0
a. Revising the entries under ``Alaska''; and
0
b. Removing footnote 1.
    The revisions read as follows:

Appendix A to Part 11--Fee Schedule for FY 2017

------------------------------------------------------------------------
             State                      County             Fee/acre/yr
------------------------------------------------------------------------

                              * * * * * * *
Alaska........................  Aleutian Islands Area.  $1.02
                                Statewide per-acre....  $36.53

                              * * * * * * *
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    Issued: February 1, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-02412 Filed 2-6-18; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]
[Notices]
[Pages 43656-43657]
[FR Doc No: 2017-19682]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2002-14084]

Petition for Waiver of Compliance

    Under Part 211 of Title 49 Code of Federal Regulations (CFR), this
provides

the public notice that on August 29, 2017, the San Luis Central
Railroad (SLC) petitioned the Federal Railroad Administration (FRA) for
a waiver of compliance from certain provisions of the Federal railroad
safety regulations contained at 49 CFR part 223. FRA assigned the
petition docket number FRA-2002-14084.
    Specifically, the SLC seeks to renew an existing waiver of
compliance from the glazing regulations in 49 CFR 223.11, Requirements
for existing locomotives, for two locomotives, identified as SLC 70 and
SLC 71. The SLC is located in Monte Vista, Colorado, and operates a
short line railroad with yard limits of 13 miles. Both locomotives
operate at a speed not exceeding 10 miles per hour. Both locomotives
are presently equipped with laminated tinted glass with 0.030''
lamination and an AS-1 rating. The SLC represents that the locomotives
and glazing are in good condition, and there is no record of vandalism
on SLC property.
    Since SLC's original waiver was granted in 2003, there have been no
accidents, incidents, or injuries to employees that involved the window
glazing of locomotives SLC 70 and SLC 71.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov and in person at the U.S. Department of
Transportation's (DOT) Docket Operations Facility, 1200 New Jersey
Avenue SE., W12-140, Washington, DC 20590. The Docket Operations
Facility is open from 9 a.m. to 5 p.m., Monday through Friday, except
Federal Holidays.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested parties
desire an opportunity for oral comment, they should notify FRA, in
writing, before the end of the comment period and specify the basis for
their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
    Communications received by October 18, 2017 will be considered by
FRA before final action is taken. Comments received after that date
will be considered if practicable.
    Anyone can search the electronic form of any written communications
and comments received into any of our dockets by the name of the
individual submitting the comment (or signing the document, if
submitted on behalf of an association, business, labor union, etc.). In
accordance with 5 U.S.C. 553(c), DOT solicits comments from the public
to better inform its processes. DOT posts these comments, without edit,
including any personal information the commenter provides, to
www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at www.transportation.gov/privacy.
See also http://www.regulations.gov/privacyNotice for the privacy
notice of regulations.gov.

Robert C. Lauby,
Associate Administrator for Railroad Safety, Chief Safety Officer.
[FR Doc. 2017-19682 Filed 9-15-17; 8:45 am]
 BILLING CODE 4910-06-P


[Federal Register Volume 77, Number 206 (Wednesday, October 24, 2012)]
[Notices]
[Page 64982]
[FR Doc No: 2012-26137]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP13-1-000]

WBI Energy Transmission, Inc.; Notice of Request Under Blanket
Authorization

    Take notice that on October 4, 2012 WBI Energy Transmission, Inc
(WBI Energy), 1250 West Century Avenue, Bismark, North Dakota, 58503,
filed in Docket No. CP13-1-000, a Prior Notice request pursuant to
sections 157.205 and 157.216 of the Commission's Regulations under the
Natural Gas Act for authorization to abandon storage facilities at its
Baker Storage Reservoir in Fallon County, Montana. Specifically, WBI
Energy proposes to abandon one natural gas storage well (Well 23) and
its associated 4-inch diameter well line measuring approximately 125
feet (Well Line 23). Well 23 has not been utilized since November 2011
due to sub-surface damage and unsuccessful repair attempts. WBI Energy
has determined that plugging and abandoning the well is the best course
of action, all as more fully set forth in the application which is on
file with the Commission and open to public inspection. The filing may
also be viewed on the Web at http://www.ferc.gov using the ``eLibrary''
link. Enter the docket number excluding the last three digits in the
docket number field to access the document. For assistance, contact
FERC at<EMAIL_ADDRESS>or call toll-free,<PHONE_NUMBER> or
TTY,<PHONE_NUMBER>.
    Any questions regarding this Application should be directed to
Keith A. Tiggelaar, Director of Regulatory Affairs, WBI Energy
Transmission, Inc., P.O. Box 5601, Bismark, North Dakota, 58506, or
call<PHONE_NUMBER>, or by email<EMAIL_ADDRESS>    Any person may, within 60 days after the issuance of the instant
notice by the Commission, file pursuant to Rule 214 of the Commission's
Procedural Rules (18 CFR 385.214) a motion to intervene or notice of
intervention. Any person filing to intervene or the Commission's staff
may, pursuant to section 157.205 of the Commission's Regulations under
the NGA (18 CFR 157.205) file a protest to the request. If no protest
is filed within the time allowed therefore, the proposed activity shall
be deemed to be authorized effective the day after the time allowed for
protest. If a protest is filed and not withdrawn within 30 days after
the time allowed for filing a protest, the instant request shall be
treated as an application for authorization pursuant to section 7 of
the NGA.
    Persons who wish to comment only on the environmental review of
this project should submit an original and two copies of their comments
to the Secretary of the Commission. Environmental commenter's will be
placed on the Commission's environmental mailing list, will receive
copies of the environmental documents, and will be notified of meetings
associated with the Commission's environmental review process.
Environmental commenter's will not be required to serve copies of filed
documents on all other parties. However, the non-party commentary, will
not receive copies of all documents filed by other parties or issued by
the Commission (except for the mailing of environmental documents
issued by the Commission) and will not have the right to seek court
review of the Commission's final order.
    The Commission strongly encourages electronic filings of comments,
protests, and interventions via the internet in lieu of paper. See 18
CFR 385.2001(a)(1)(iii) and the instructions on the Commission's Web
site (www.ferc.gov) under the ``e-Filing'' link.

    Dated: October 17, 2012.
Kimberly D. Bose,
Secretary.
[FR Doc. 2012-26137 Filed 10-23-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 58 (Monday, March 26, 2018)]
[Notices]
[Pages 12966-12968]
[FR Doc No: 2018-06017]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82911; File No. SR-ISE-2017-106]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Granting
Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To
Permit the Listing and Trading of NQX Index Options on a Pilot Basis

March 20, 2018.

I. Introduction

    On December 6, 2017, Nasdaq ISE, LLC (``ISE'' 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
permit the listing and trading of options based on \1/5\ the value of
the Nasdaq-100 Index (``Nasdaq-100'') on a pilot basis. The proposed
rule change was published for comment in the Federal Register on
December 26, 2017.\3\ On January 31, 2018, the Exchange filed Amendment
No. 1 to the proposed rule change.\4\ On February 8, 2018, pursuant to
Section 19(b)(2) of the Act,\5\ the Commission designated a longer
period within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
approve or disapprove the proposed rule change.\6\ The Commission
received no comment letters on the proposed rule change. The Commission
is approving the proposed rule change, as modified by Amendment No. 1,
subject to a pilot period set to end on the earlier of: (1) Twelve
months following the date of the first listing of the options; or (2)
June 30, 2019.
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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. 82362 (December 19,
2017), 82 FR 61090 (``Notice'').
    \4\ In Amendment No. 1, the Exchange revised its proposal to:
(1) Add that raw percentage price change data as well as percentage
price change data normalized for prevailing market volatility, as
measured by an appropriate index as agreed by the Commission and the
Exchange, would be provided as part of the pilot data; and (2)
revise the proposed duration of the pilot program such that the
pilot would terminate on the earlier of: (i) Twelve months following
the date of the first listing of the options; or (ii) June 30, 2019.
When the Exchange filed Amendment No. 1 with the Commission, it also
submitted Amendment No. 1 to the public comment file for SR-ISE-
2017-106 (available at: https://www.sec.gov/comments/sr-ise-2017-106/ise2017106.htm). Because Amendment No. 1 does not materially
alter the substance of the proposed rule change or raise unique or
novel regulatory issues, it is not subject to notice and comment.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 82666, 83 FR 6626
(February 14, 2018). The Commission designated March 26, 2018 as the
date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to approve or disapprove,
the proposed rule change.
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II. Description of the Proposal, as Modified by Amendment No. 1

    The Exchange is proposing to amend its rules to permit the listing
and trading, on a pilot basis, of index options on the Nasdaq 100
Reduced Value Index (``NQX'') with third Friday of the month expiration
dates. The Exchange represents that the NQX options contract will be
the same in all respects as the current Nasdaq-100 (``NDX'') options
contract listed on the Exchange,\7\ except that it will be based on \1/
5\ of the value of the Nasdaq-100, and will be P.M.-settled with an
exercise settlement value based on the closing index value of the
Nasdaq-100 on the day of expiration.\8\ In particular, NQX options will
be subject to the same rules that presently govern the trading of index
options based on the Nasdaq-100, including sales practice rules, margin
requirements, trading rules, and position and exercise limits. Similar
to NDX options, NQX options will be European-style and cash-settled,
and will have a contract multiplier of 100. NQX options will have a
minimum trading increment of $0.05 for options below $3.00 and $0.10
for all other series. Strike price intervals will be set at $1 or
greater, subject to conditions described in ISE Rule 2009(c)(5).\9\
Consistent with the Exchange's existing rules for index options, the
Exchange will allow up to six expiration months at any one time that
may expire at three-month intervals or in consecutive months, as well
as LEAPS.\10\ The product will have European-style exercise and will
not be subject to position limits, although the Exchange proposes to
amend ISE Rule 2004(c) to more accurately describe how positions in
reduced-value options would be aggregated with full-value options.\11\
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    \7\ See Securities Exchange Act Release No. 51121 (February 1,
2005), 70 FR 6476 (February 7, 2005) (SR-ISE-2005-01).
    \8\ The Exchange notes that similar features are available with
other index options contracts listed on the Exchange and other
options exchanges, including options contracts based on 1/10 the
value of the Nasdaq-100 (``MNX'') and P.M.-settled options on the
full value of the Nasdaq-100 (``NDXPM''). See Notice, supra note 3,
at 61091.
    \9\ Generally, pursuant to ISE Rule 2009(c)(1), index options
listed on the Exchange are subject to strike price intervals of no
less than $5, provided that certain classes of index options
(including NDX and MNX) have strike price intervals of no less than
$2.50 if the strike price is less than $200. The Exchange proposes
to amend ISE Rule 2009(c)(1) to add NQX options to the list of
classes where strike price intervals of no less than $2.50 are
generally permitted if the strike price is less than $200. In
addition, ISE Rule 2009(c)(5) provides finer strike price intervals
for MNX options as these contracts are based on a reduced value of
the Nasdaq-100. Specifically, ISE Rule 2009(c)(5) provides that
notwithstanding ISE Rule 2009(c)(1), the interval between strike
prices of series of MNX options will be $1 or greater, subject to
certain conditions. The Exchange proposes to adopt the same strike
price intervals for NQX options as currently approved for MNX
options. The Exchange will not list LEAPS on NQX options at
intervals less than $5. If the Exchange determines to add NQX
options to the Weeklies or Quarterlies programs, such options will
be listed with the expirations and strike prices described in
Supplementary Material .01 or .02 to ISE Rule 2009. The Exchange
notes that it expects to add NQX options to the Weeklies program.
See id. at 61092 n.15.
    \10\ See id. at 61092 & n.13. The Exchange states that it
intends to file a separate proposed rule change to modify the
expiration months permitted for index option contracts consistent
with Nasdaq PHLX LLC (``Phlx'') Rule 1101A(b). See id. at 61092
n.13.
    \11\ For a more detailed description of the proposed NQX
contract, see Notice, supra note 3.
---------------------------------------------------------------------------

    As proposed, NQX would become subject to a pilot for a period that
would end on the earlier of: (i) Twelve months following the date of
the first listing of the options; or (ii) June 30, 2019 (``Pilot
Program''). If the Exchange were to propose an extension of the Pilot
Program or should the Exchange propose to make the Pilot Program
permanent, then the Exchange would submit a filing proposing such
amendments to the Pilot Program. The Exchange notes that any positions
established under the pilot would not be impacted by the expiration of
the pilot. For example, a position in an NQX options series that
expires beyond the conclusion of the pilot period could be established
during the pilot. If the Pilot Program were not extended, then the
position could continue to exist. However, the Exchange notes that any
further trading in the series would be restricted to transactions where
at least one side of the trade is a closing transaction.
    The Exchange proposes to submit a Pilot Program report to
Commission at least two months prior to the expiration date of the
Pilot Program (the ``annual report''). The annual report would contain
an analysis of volume, open interest, and trading patterns. The
analysis would examine trading in the

proposed option product as well as trading in the securities that
comprise the Nasdaq-100. In addition, for series that exceed certain
minimum open interest parameters, the annual report would provide
analysis of index price volatility and share trading activity. In
addition to the annual report, the Exchange would provide the
Commission with periodic interim reports while the Pilot Program is in
effect that would contain some, but not all, of the information
contained in the annual report. The annual report would be provided to
the Commission on a confidential basis. The annual report would contain
the following volume and open interest data:
    (1) Monthly volume aggregated for all trades;
    (2) monthly volume aggregated by expiration date;
    (3) monthly volume for each individual series;
    (4) month-end open interest aggregated for all series;
    (5) month-end open interest for all series aggregated by expiration
date; and
    (6) month-end open interest for each individual series.
    In addition to the annual report, the Exchange would provide the
Commission with interim reports of the information listed in Items (1)
through (6) above periodically as required by the Commission while the
Pilot Program is in effect. These interim reports would also be
provided on a confidential basis.
    Finally, the annual report would contain the following analysis of
trading patterns in Expiration Friday, P.M.-settled NQX option series
in the Pilot Program: (1) A time series analysis of open interest; and
(2) an analysis of the distribution of trade sizes. Also, for series
that exceed certain minimum parameters, the annual report would contain
the following analysis related to index price changes and underlying
share trading volume at the close on Expiration Fridays: A comparison
of index price changes at the close of trading on a given Expiration
Friday with comparable price changes from a control sample. The data
would include a calculation of percentage price changes for various
time intervals and compare that information to the respective control
sample. Raw percentage price change data as well as percentage price
change data normalized for prevailing market volatility, as measured by
an appropriate index as agreed by the Commission and the Exchange,
would be provided. The Exchange would provide a calculation of share
volume for a sample set of the component securities representing an
upper limit on share trading that could be attributable to expiring in-
the-money series. The data would include a comparison of the calculated
share volume for securities in the sample set to the average daily
trading volumes of those securities over a sample period. The minimum
open interest parameters, control sample, time intervals, method for
randomly selecting the component securities, and sample periods would
be determined by the Exchange and the Commission.\12\
---------------------------------------------------------------------------

    \12\ See id. at 61092-93 and Amendment No. 1. The proposed Pilot
Program for NQX options is similar to the pilot program approved for
the listing and trading of NDXPM options on Phlx. See Securities
Exchange Act Release No. 81293 (Aug. 2, 2017), 82 FR 37138 (Aug. 8,
2017) (``NDXPM Order'').
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful consideration of the proposal, the Commission finds
that the proposed rule change, as modified by Amendment No. 1, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange,\13\ and, in particular, the requirements of Section 6 of the
Act.\14\ Specifically, the Commission finds that the proposed rule
change is consistent with Section 6(b)(5) of the Act,\15\ which
requires that an exchange have rules designed to remove impediments to
and perfect the mechanism of a free and open market and to protect
investors and the public interest, to allow ISE to conduct a limited,
and carefully monitored, pilot as proposed.
---------------------------------------------------------------------------

    \13\ 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).
    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that it has previously approved the listing
and trading of options based on a reduced value of the Nasdaq-100.\16\
However, this proposed rule change would permit P.M. settlement for
such options and, as noted in the Commission's order approving the
listing and trading of NDXPM on Phlx on a pilot program basis, the
Commission has had concerns about the potential adverse effects and
impact of P.M. settlement upon market volatility and the operation of
fair and orderly markets on the underlying cash market at or near the
close of trading, including for cash-settled derivatives contracts
based on a broad-based index.\17\ The potential impact today remains
unclear, given the significant changes in the closing procedures of the
primary markets in recent decades. The Commission is mindful of the
historical experience with the impact of P.M. settlement of cash-
settled index derivatives on the underlying cash markets, but
recognizes that these risks may be mitigated today by the enhanced
closing procedures that are now in use at the primary equity markets.
---------------------------------------------------------------------------

    \16\ See, e.g., Securities Exchange Act Release Nos. 57654
(April 11, 2008), 73 FR 21003 (April 17, 2008); 51121 (February 1,
2005), 70 FR 6476 (February 7, 2005).
    \17\ See NDXPM Order, supra note 12. See also Securities
Exchange Act Release Nos. 64599 (June 3, 2011), 76 FR 33798, 33801-
02 (June 9, 2011) (order instituting proceedings to determine
whether to approve or disapprove a proposed rule change to allow the
listing and trading of SPXPM options); 65256 (September 2, 2011), 76
FR 55969, 55970-76 (September 9, 2011) (order approving proposed
rule change to establish a pilot program to list and trade SPXPM
options); and 68888 (February 8, 2013), 78 FR 10668, 10669 (February
14, 2013) (order approving the listing and trading of SPXPM on
CBOE).
---------------------------------------------------------------------------

    Additionally, for the reasons described below, the Commission
believes that ISE's proposed NQX Pilot Program is designed to mitigate
concerns regarding P.M. settlement and will provide additional trading
opportunities for investors while providing the Commission with data to
monitor the effects of NQX options and the impact of P.M. settlement on
the markets. To assist the Commission in assessing any potential impact
of a P.M.-settled NQX option on the options markets as well as the
underlying cash equities markets, ISE will be required to submit data
to the Commission in connection with the Pilot Program. The Commission
believes that ISE's proposed Pilot Program, together with the data and
analysis that ISE will provide to the Commission, will allow ISE and
the Commission to monitor for and assess any potential for adverse
market effects of allowing P.M. settlement for NQX options, including
on the underlying component stocks. In particular, the data collected
from ISE's NQX Pilot Program will help inform the Commission's
consideration of whether the Pilot Program should be modified,
discontinued, extended, or permanently approved. Furthermore, the
Exchange's ongoing analysis of the Pilot Program should help it monitor
any potential risks from large P.M.-settled positions and take
appropriate action on a timely basis if warranted.
    The Exchange represents that it has adequate surveillance
procedures to monitor trading in these options thereby helping to
ensure the maintenance of a fair and orderly market, and has
represented that it has sufficient capacity to handle additional
traffic associated with this new listing.\18\
---------------------------------------------------------------------------

    \18\ See Notice, supra note 3, at 61092. In addition, the
Commission notes that ISE would have access to information through
its membership in the Intermarket Surveillance Group with respect to
the trading of the securities underlying the NQX, as well as tools
such as large options positions reports to assist its surveillance
of NQX options. In approving the proposed rule change, the
Commission also has relied upon the Exchange's representation that
it has the necessary systems capacity to support new options series
that will result from this proposal. See id.

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

    For the reasons discussed above, the Commission finds that ISE's
proposal is consistent with the Act, including Section 6(b)(5) thereof,
in that it is designed to remove impediments to and perfect the
mechanism of a free and open market, and, in general, to protect
investors and the public interest. In light of the enhanced closing
procedures at the underlying markets and the potential benefits to
investors discussed by the Exchange in the Notice,\19\ the Commission
finds that it is appropriate and consistent with the Act to approve
ISE's proposal on a pilot basis. The collection of data during the
Pilot Program and ISE's active monitoring of any effects of NQX options
on the markets will help ISE and the Commission assess any impact of
P.M. settlement in today's market.
---------------------------------------------------------------------------

    \19\ See id.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\20\ that the proposed rule change (SR-ISE-2017-106), as modified
by Amendment No. 1, be, and hereby is, approved, subject to a pilot
period set to expire on the earlier of: (1) Twelve months following the
date of the first listing of the options; or (2) June 30, 2019.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(2).
    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-06017 Filed 3-23-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 47 (Thursday, March 10, 2011)]
[Rules and Regulations]
[Pages 13069-13072]
[FR Doc No: 2011-5115]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-0150; Directorate Identifier 2010-NM-100-AD;
Amendment 39-16619; AD 2011-05-10]
RIN 2120-AA64

Airworthiness Directives; BAE Systems (Operations) Limited Model
ATP Airplanes; BAE Systems (Operations) Limited Model HS 748 Airplanes

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

ACTION: Final rule; request for comments.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for the
products listed above. This AD results from mandatory continuing
airworthiness information (MCAI) originated by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as:
* * * * *
    Recently, during a walk round check, an operator found an
aileron trim tab hinge pin that had migrated sufficiently to cause a
rubbing foul on the flap. Other reports indicate that, for the
purposes of expediency, it has become common practice during
maintenance when replacing a control tab, instead of unbolting the
forward part of the piano hinge from the primary control surface,
the hinge pins are punched out of the hinges. Investigations have
concluded that, after reinserting the pins after maintenance, the
ends of the hinges may not have been pinched, which is likely to
have been the cause of the detected hinge pin migration.
    This condition [non-pinched hinge pin ends], if not detected and
corrected, could lead to further incidents of migration of a tab

hinge pin out of the hinge, likely resulting in restricted movement
of the tab control and consequent reduced control of the aeroplane.

    This AD requires actions that are intended to address the unsafe
condition described in the MCAI.

DATES: This AD becomes effective March 25, 2011.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of March 25,
2011.
    We must receive comments on this AD by April 25, 2011.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-40, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

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 this 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.

FOR FURTHER INFORMATION CONTACT: Todd Thompson, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; phone: 425-227-
1175; fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued EASA
Airworthiness Directive 2010-0035, dated March 4, 2010 (referred to
after this as ``the MCAI''), to correct an unsafe condition for the
specified products. The MCAI states:

    Early in the life of the ATP (circa 1989), a report was received
that a control surface hinge pin had migrated out of position,
causing a rubbing contact. BAE Systems responded by issuing SB ATP-
27-11, describing a one-time inspection of the hinge pins, which was
classified mandatory by UK CAA AD 006-06-89. Both SB and AD were
subsequently cancelled in 1990. The HS.748 and the ATP secondary
controls are similar in these areas, although no action was taken on
the HS.748 fleet at that time.
    Recently, during a walk round check, an operator found an
aileron trim tab hinge pin that had migrated sufficiently to cause a
rubbing foul on the flap. Other reports indicate that, for the
purposes of expediency, it has become common practice during
maintenance when replacing a control tab, instead of unbolting the
forward part of the piano hinge from the primary control surface,
the hinge pins are punched out of the hinges.
    Investigations have concluded that, after reinserting the pins
after maintenance, the ends of the hinges may not have been pinched,
which is likely to have been the cause of the detected hinge pin
migration.
    This condition [non-pinched hinge pin ends], if not detected and
corrected, could lead to further incidents of migration of a tab
hinge pin out of the hinge, likely resulting in restricted movement
of the tab control and consequent reduced control of the aeroplane.
    For the reasons described above, this AD requires the [detailed]
inspection of aileron and rudder tab piano hinge pins [for length
and end pinching] and, depending on findings, the necessary
corrective actions.

Corrective actions include cutting the hinge pin to specified size, and
pinching the piano hinge ends sufficient to prevent the piano hinge pin
from migrating from the piano hinge. You may obtain further information
by examining the MCAI in the AD docket.

Relevant Service Information

    BAE Systems (Operations) Limited has issued Service Bulletin ATP-
27-090, dated April 14, 2009; and Service Bulletin HS748-27-136, dated
April 14, 2009. The actions described in this service information are
intended to correct the unsafe condition identified in the MCAI.

FAA's Determination and Requirements of This AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are issuing this AD because we
evaluated all pertinent information and determined the unsafe condition
exists and is likely to exist or develop on other products of the same
type design.
    There are no products of this type currently registered in the
United States. However, this rule is necessary to ensure that the
described unsafe condition is addressed if any of these products are
placed on the U.S. Register in the future.

Differences Between the AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information
provided in the MCAI and related service information.
    We might also have required different actions in this AD from those
in the MCAI in order to follow FAA policies. Any such differences are
highlighted in a Note within the AD.

FAA's Determination of the Effective Date

    Since there are currently no domestic operators of this product,
notice and opportunity for public comment before issuing this AD are
unnecessary.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not precede it by notice and opportunity for public
comment. We invite you to send any written relevant data, views, or
arguments about this AD. Send your comments to an address listed under
the ADDRESSES section. Include ``Docket No. FAA-2011-0150; Directorate
Identifier 2010-NM-100-AD'' at the beginning of your comments. We
specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this AD. We will consider all
comments received by the closing date and may amend this AD because of
those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this AD.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.

    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. 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.

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:

2011-05-10 BAE Systems (Operations) Limited: Amendment 39-16619.
Docket No. FAA-2011-0150; Directorate Identifier 2010-NM-100-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective March
25, 2011.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to all BAE Systems (Operations) Limited
Model ATP airplanes and BAE Systems (Operations) Limited Model HS
748 series 2A and series 2B airplanes; certificated in any category.

Subject

    (d) Air Transport Association (ATA) of America Code 27: Flight
Controls.

Reason

    (e) The mandatory continued airworthiness information (MCAI)
states:
* * * * *
    Recently, during a walk round check, an operator found an
aileron trim tab hinge pin that had migrated sufficiently to cause a
rubbing foul on the flap. Other reports indicate that, for the
purposes of expediency, it has become common practice during
maintenance when replacing a control tab, instead of unbolting the
forward part of the piano hinge from the primary control surface,
the hinge pins are punched out of the hinges. Investigations have
concluded that, after reinserting the pins after maintenance, the
ends of the hinges may not have been pinched, which is likely to
have been the cause of the detected hinge pin migration.
    This condition [non-pinched hinge pin ends], if not detected and
corrected, could lead to further incidents of migration of a tab
hinge pin out of the hinge, likely resulting in restricted movement
of the tab control and consequent reduced control of the aeroplane.

Compliance

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

Inspection and Corrective Action

    (g) Within 90 days after the effective date of this AD: Do a
detailed inspection of the aileron and rudder tab piano hinge pins
to determine that each piano hinge pin is 0.120 inch (3.00 mm)
shorter than the piano hinge at each end; and that the piano hinge
ends have been pinched sufficiently to prevent the piano hinge
migrating from the piano hinge, in accordance with the
Accomplishment Instructions of BAE Systems (Operations) Limited
Service Bulletin ATP-27-090, dated April 14, 2009; or BAE Systems
(Operations) Limited Service Bulletin HS748-27-136, dated April 14,
2009, as applicable.
    (1) If any piano hinge pin is not 0.120 inch (3.00 mm) shorter
than the piano hinge at each end, before further flight, cut to
size, in accordance with Accomplishment Instructions of BAE Systems
(Operations) Limited Service Bulletin ATP-27-090, dated April 14,
2009; or BAE Systems (Operations) Limited Service Bulletin HS748-27-
136, dated April 14, 2009; as applicable.
    (2) If any piano hinge pin is not pinched sufficiently to
prevent the piano hinge migrating from the piano hinge, before
further flight, pinch the hinge, in accordance with Accomplishment
Instructions of BAE Systems (Operations) Limited Service Bulletin
ATP-27-090, dated April 14, 2009; or BAE Systems (Operations)
Limited Service Bulletin HS748-27-136, dated April 14, 2009; as
applicable.

FAA AD Differences

    Note 1:  This AD differs from the MCAI and/or service
information as follows: No differences

Other FAA AD Provisions

    (h) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19. Send information to Attn: Todd
Thompson, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue, SW., Renton,
Washington 98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>.
Information may be e-mailed 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.

Related Information

    (i) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA Airworthiness Directive 2010-0035, dated March 04, 2010;
BAE Systems (Operations) Limited Service Bulletin ATP-27-090, dated
April 14, 2009; and BAE Systems (Operations) Limited Service
Bulletin HS748-27-136, dated April 14, 2009; for related
information.

Material Incorporated by Reference

    (j) You must use BAE Systems (Operations) Limited Service
Bulletin ATP-27-090, dated April 14, 2009; or BAE Systems
(Operations) Limited Service Bulletin HS748-27-136, dated April 14,
2009; as applicable; to do the actions required by this AD, unless
the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact BAE
Systems (Operations) Limited, Customer Information Department,
Prestwick International Airport, Ayrshire, KA9 2RW, Scotland, United
Kingdom; telephone +44 1292 675207; fax +44 1292

675704; e-mail<EMAIL_ADDRESS>Internet http://www.baesystems.com/Businesses/RegionalAircraft/index.htm.
    (3) You may review copies of the service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington. For information on the availability of this material at
the FAA, call<PHONE_NUMBER>.
    (4) You may also review copies of the 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/code_of_federal_regulations/ibr_locations.html.

    Issued in Renton, Washington, on February 22, 2011.
Kalene C. Yanamura,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2011-5115 Filed 3-9-11; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 48 (Tuesday, March 12, 2013)]
[Notices]
[Pages 15713-15714]
[FR Doc No: 2013-05629]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC13-77-000.
    Applicants: Michigan Electric Transmission Company.
    Description: Application for Approval of Acquisition of
Transmission Assets under FPA Sec. 203 of METC (McGulpin, Delhi,
Spaulding).
    Filed Date: 3/1/13.
    Accession Number: 20130301-5382.
    Comments Due: 5 p.m. ET 3/22/13.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER13-288-001.
    Applicants: Entergy Arkansas, Inc.
    Description: Transmission Service Monitor Compliance Filing to be
effective 12/1/2012.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5256.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER12-2292-003.
    Applicants: Southwest Power Pool, Inc.
    Description: Compliance Filing in ER12-2292 to be effective 3/19/
2013.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5352.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1018-000.
    Applicants: Brandon Shores LLC, C.P. Crane LLC.
    Description: Brandon Shores LLC and C.P. Crane LLC submits Request
for Waiver, Shortened Comment Period, and Expedited Consideration.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5248.
    Comments Due: 5 p.m. ET 3/15/13.

    Docket Numbers: ER13-1019-000.
    Applicants: South Carolina Electric & Gas Company.
    Description: Central NITSA Cancellation to be effective 3/1/2013.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5249.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1020-000.
    Applicants: NorthWestern Corporation.
    Description: SA 254--NWE MATL TIA--1st Revised Agreement to be
effective 3/1/2013.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5318.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1021-000.
    Applicants: Mesquite Solar 1, LLC.

    Description: Mesquite Solar 1 LLC Revised Joinder Agreement and
Amendment to be effective 2/28/2013.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5332.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1022-000.
    Applicants: Mesquite Power, LLC.
    Description: Mesquite Power, LLC Revised Concurrence to Joinder
Agreement and Amendment to be effective 2/28/2013.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5335.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1023-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Revisions to PJM's OATT Att DD 5.14 re NEPA Correction
& Contingent Sell Offer to be effective 5/1/2013.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5350.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1025-000.
    Applicants: Calpine Energy Services LP.
    Description: Calpine Energy Services, L.P. submits Request for
Limited Waiver.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5394.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1026-000.
    Applicants: PPL Electric Utilities Corporation.
    Description: Application of PPL Electric Utilities Corporation
under section 205 for implementation of 100% CWIP for Northeast/Pocono
Reliability Project.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5396.
    Comments Due: 5 p.m. ET 3/22/13.

    Docket Numbers: ER13-1027-000.
    Applicants: FirstEnergy Solutions Corp.
    Description: Application of FirstEnergy Solutions Corp. for
Authorization to Make Wholesale Power Sales to its Affiliate, The
Potomac Edison Company.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5400.
    Comments Due: 5 p.m. ET 3/22/13.

    Take notice that the Commission received the following open access
transmission tariff filings:

    Docket Numbers: OA07-28-006.
    Applicants: Avista Corporation.
    Description: Avista Corporation's Informational Filing of
Operational Penalty Assessments and Distributions as Required by Order
Nos. 890 and 890-A.
    Filed Date: 3/1/13.
    Accession Number: 20130301-5397.
    Comments Due: 5 p.m. ET 3/22/13.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: March 4, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-05629 Filed 3-11-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 120 (Thursday, June 23, 2022)]
[Notices]
[Page 37539]
[FR Doc No: 2022-13384]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95118; File No. SR-NYSE-2022-20]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Designation of a Longer Period for Commission Action on
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change To Modify Rule 7.31 To Add Subparagraph (f)(1) Regarding
Directed Orders

June 16, 2022.
    On April 20, 2022, New York Stock Exchange LLC (``NYSE'' 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 modify Rule 7.31 (Orders and Modifiers) to
allow member organizations to submit Directed Orders to be routed
directly to an alternative trading system (``ATS'') specified by the
member organization. The proposed rule change was published for comment
in the Federal Register on May 9, 2022.\3\ The Commission has received
no comment letters on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 94839 (May 3, 2022),
87 FR 27679 (May 9, 2022) (SR-NYSE-2022-20).
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    Section 19(b)(2) of the Act \4\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding, or as to which the self-regulatory organization
consents, the Commission will either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day after publication of the notice for this proposed rule change
is June 23, 2022. The Commission is extending this 45-day time period.
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    \4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change, so that it has sufficient time to consider the proposed
rule change. Accordingly, the Commission, pursuant to Section 19(b)(2)
of the Act,\5\ designates August 7, 2022, as the date by which the
Commission shall either approve or disapprove the proposed rule change
(File No. SR-NYSE-2022-20).
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    \5\ 15 U.S.C. 78s(b)(2).
    \6\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13384 Filed 6-22-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 10 (Friday, January 15, 2021)]
[Notices]
[Pages 4163-4166]
[FR Doc No: 2021-00816]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90896; File No. SR-CBOE-2021-001]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend its Fees Schedule With Respect to Expiring Fee Waivers and
Incentive Programs

January 11, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 4, 2021, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its Fees Schedule with respect to expiring fee waivers and
incentive programs. The text of the proposed rule change is provided in
Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its Fees Schedule to (1) amend the
MSCI EAFE Index (``MXEA'') options and MSCI Emerging Markets Index
(``MXEF'') options Lead Market Maker (``LMM'') Incentive Program, (2)
amend the Global Trading Hours (``GTH'') S&P 500 Index (``SPX'')
options and SPX Weekly (``SPXW'') options LMM Incentive Program and (3)
remove reference to the FTSE 100 Mini Index (``UKXM'') options
Designated Primary Market-Maker (``DPM'') Incentive Program. The
Exchange proposes to implement these amendments to its Fees Schedule on
January 4, 2021.
MXEA and MXEF LMM Incentive Program
    The Exchange proposes to amend its financial program for LMMs
quoting in Regular Trading Hours (``RTH'') appointed in MXEA and MXEF
options (i.e., the MSCI LMM Incentive Program). Currently, if the
appointed LMM in MXEA and MXEF provides continuous electronic quotes
during RTH that meet or exceed the heightened quoting standards \3\ in
at least 90% of the MXEA and MXEF series 80% of the time in a given
month, the LMM will receive a payment for that month in the amount of
$20,000 per class, per month. That is, an appointed LMM may reach the
heightened quoting standards for the given percentage of series and
time, measured across both the MXEF and MXEA series, in a given month
to receive the $20,000 payment per class per month. Additionally, the
Exchange notes that an LMM in MSCI options is not currently obligated
to satisfy the heightened quoting standards described in the table
above. Rather, an LMM is eligible to receive the rebate if it satisfies
the heightened quoting standards, which the Exchange believes
encourages LMMs to provide liquidity during GTH. The Exchange may also
consider other exceptions to this quoting standard based on
demonstrated legal or regulatory requirements or other mitigating
circumstances.
---------------------------------------------------------------------------

    \3\ Located in the ``MSCI LMM Incentive Program'' table in the
Fees Schedule.
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to amend certain near-term
widths contained in the MSCI LMM Incentive Program's heightened quoting
standards. Currently, for MXEA and MXEF options expiring in the near
term (8 days to 60 days) the appointed LMM

must meet a heightened quoting standard of a $1.50 width for 20 size, a
$3.00 width for 15 size, and a $7.50 width for a 10 size. The proposed
rule change updates these widths to a $1.20 width for a quote with a
size of 20 contracts, a $2.50 width for a quote with a size of 15
contracts, and a $5.00 width for a quote with a size of 10 contracts.
The Exchange notes that these tighter heightened quoting standards for
certain near-term sizes are more closely aligned with those heightened
standards for comparable sizes in near term options under the GTH SPX/
SPXW LMM and GTH VIX/VIXW programs. The Exchange believes that the
proposed rule change will incentivize LMMs in MSCI options classes to
meet tighter heightened quoting standards in orders to receive the
rebate offered under the MSCI LMM Incentive Program. Tighter spreads
generally signal an increase in activity from other market
participants, contributing to overall deeper, more liquid markets,
price discovery and transparency, and a robust market ecosystem to the
benefit of all market participants.
GTH SPX/SPXW LMM Program
    The Exchange also currently offers a financial incentive program
for LMMs quoting in GTH appointed in SPX/SPXW (i.e., the GTH SPX/SPXW
LMM Incentive Program).\4\ Currently, under the GTH SPX/SPXW LMM
Incentive Program, if an LMM in SPX/SPXW provides continuous electronic
quotes during GTH that meet or exceed the heightened quoting standards
\5\ in at least 85% of each of the SPX and SPXW series, 90% of the time
in a given month, the LMM will receive a rebate for that month in the
amount of $10,000 for SPX and $10,000 for SPXW. Like with the MSCI LMM
Incentive Program, a GTH LMM in SPX/SPXW is not currently obligated to
satisfy the heightened quoting standards described in the table above,
but instead is eligible to receive the rebate if they satisfy the
heightened quoting standards above, which are also designed to
encourage LMMs to provide liquidity during GTH. The Exchange may also
consider other exceptions to this quoting standard based on
demonstrated legal or regulatory requirements or other mitigating
circumstances.
---------------------------------------------------------------------------

    \4\ The Exchange notes that an LMM appointed in SPX also holds
an appointment in SPXW.
    \5\ Located in the ``GTH SPX/SPXW LLM Incentive Program'' table
in the Fees Schedule.
---------------------------------------------------------------------------

    The Exchange proposes to increase the rebate amount received for
SPX and SPXW to $20,000 for SPX and $30,000 for SPXW, for meeting the
heighten quoting standards in a given month. The proposed increase in
the rebate amounts is designed to further encourage GTH LMMs to provide
significant liquidity in SPX/SPXW options during GTH. The Exchange
notes that the amounts are comparable to the amount currently offered
under the MSCI LMM Program ($20,000 per each class) and to the amount
currently offered under the RTH SPESG LMM Incentive Program, which
offers a compensation pool of $50,000 that is split among LMMs that
reach the program's heightened quoting standards (e.g., if two LMMs
were to meet the heightened quoting standards, they would each receive
$25,000).
Removal of Expiring UKXM DPM Incentive Program
    The Exchange currently has a compensation plan in place for the
DPM(s) appointed in UKXM, which expires on December 31, 2020. Pursuant
to footnote 43 in the Fees Schedule, the DPM appointed for an entire
month in UKXM will receive a payment of $5,000 per month through
December 31, 2020. As the program expires December 31, 2020, the
proposed rule change eliminates footnote 43 and also removes references
to footnote 43 in Rate Table--Underlying Symbol List A in the Fees
Schedule.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\6\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ requirements that the rules of an exchange 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 regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\8\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

MXEA and MXEF LLM Incentive Program
    The Exchange believes that it is reasonable, equitable and not
unfairly discriminatory to amend certain widths in the heightened
quoting standards under the MSCI LMM Incentive Program. The Exchange
believes it is reasonable to tighten the widths for certain quote sizes
with near-term expiry in the heightened quoting standards as it is
reasonably designed to facilitate tighter quotes from LMMs in MXEA and
MXEF options in order to meet the heightened quoting standards and
receive the payment offered under the incentive program. Tighter quotes
tend to signal additional corresponding increase in order flow from
other market participants, which benefits all investors by deepening
the Exchange's liquidity pool, potentially providing even greater
execution incentives and opportunities, offering additional flexibility
for all investors to enjoy cost savings, supporting the quality of
price discovery, promoting market transparency and improving investor
protection. As noted, the MSCI LMM Incentive Program, overall, is
intended to continue incentivizing the LMM(s) in MSCI options classes
to continue to provide key liquidity and active markets in these
products. The Exchange also believes that the proposed widths are
reasonable because they are generally aligned with the corresponding
heightened standards for comparable sizes in near term options under
the GTH SPX/SPXW LMM and GTH VIX/VIXW programs.
    The Exchange believes that it is equitable and not unfairly
discriminatory to amend the near-term quoting widths for select sizes
within the program's heightened quoting standards, because such widths
will equally apply to any and all LMMs with appointments in MXEF and
MXEA options that seeks to meet the heightened quoting standards in
order to receive the rebate offered under the MSCI LMM Incentive
Program. The Exchange notes that, if a MSCI LMM does not satisfy the
heightened quoting standards, then it simply will not receive the
offered per class payment for that month.
GTH SPX/SPXW Incentive Programs
    The Exchange believes that it is reasonable, equitable and not
unfairly discriminatory to increase the rebate per class received under
the GTH SPX/SPXW LMM Incentive Program. The Exchange believes that the
proposed

rebate amounts are reasonably designed to continue to incentivize an
appointed LMM to meet the GTH quoting standards for SPX/SPXW, thereby
providing liquid and active markets, which facilitates tighter spreads,
increased trading opportunities, and overall enhanced market quality to
the benefit of all market participants. As with the MSCI LMM Incentive
Program, the GTH SPX/SPXW Incentive Program is intended, overall, to
incentivize LMMs to continue to provide key liquidity and active
markets in these products. The Exchange further believes that the
proposed rule change to increase the rebate received for SPX ($20,000)
and SPXW ($30,000) is reasonable because it is comparable to the
rebates offered for products under similar LMM incentive programs in
the Fees Schedule. For example, the MSCI LMM Program currently offers
$20,000 per each class in which the heightened quoting standards are
met in a given month and the RTH SPESG LMM Incentive Program offers a
compensation pool of $50,000 that is split among LMMs that reach that
program's heightened quoting standards in a given month (e.g., if two
LMMs were to meet the heightened quoting standards, they would each
receive $25,000).
    The Exchange believes the proposed rebates are equitable and not
unfairly discriminatory because they equally apply to any TPH that is
appointed as a GTH SPX/SPXW LMM. Additionally, if a GTH LMM does not
satisfy the heightened quoting standard in SPX/SPXW for any given
month, then it simply will not receive the offered payment for that
month.
    Regarding both the MSCI and SPX/SPXW LMM incentive programs
generally, the Exchange believes it is equitable and not unfairly
discriminatory to continue to offer these financial incentives,
including as amended, to GTH SPX/SPXW LMMs and MSCI LMMs, because it
benefits all market participants trading SPX/SPXW during GTH and
trading MXEF and MXEA during RTH.\9\ These incentive programs encourage
the LMMs to satisfy the heightened quoting standards, which may
increase liquidity and provide more trading opportunities and tighter
spreads. Indeed, the Exchange notes that LMMs serve a crucial role in
providing quotes and the opportunity for market participants to trade
SPX/SPXW and MSCI options, which can lead to increased volume,
providing for robust markets. The Exchange ultimately wishes to
sufficiently incentive LMMs to provide liquid and active markets in
SPX/SPXW during GTH and MXEF and MXEA during RTH to encourage
liquidity. The Exchange believes that these programs, as amended, will
continue to encourage increased quoting to add liquidity in SPX/SPXW
and in MXEF and MXEA, thereby protecting investors and the public
interest. The Exchange also notes that an LMM may have added costs each
month that it needs to undertake in order to satisfy that heightened
quoting standards (e.g., having to purchase additional logical
connectivity).
---------------------------------------------------------------------------

    \9\ The Exchange notes that trading in MXEF and MXEA options is
not currently available during GTH.
---------------------------------------------------------------------------

Removal of Expiring UKXM DPM Incentive Program
    The Exchange believes the proposed rule change to remove references
to an expiring incentive program is reasonable equitable and not
unfairly discriminatory. The Exchange believes it is reasonable to
remove the UKXM DPM incentive program as it will expire on December 31,
2020. The proposed removal of the UKXM DPM incentive program is not
unfairly discriminatory and is equitable because it will no longer be
applicable, as scheduled, to any DPMs in UKXM.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
    The Exchange believes the proposed rule change does impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Particularly, the proposed
changes to existing incentive programs will apply to all LMMs appointed
to the applicable classes (i.e. MXEF, MXEA, SPX, and SPXW) in a uniform
manner. To the extent these LMMs receive a benefit that other market
participants do not, as stated, LMMs have different obligations and are
held to different standards. For example, LMMs play a crucial role in
providing active and liquid markets in their appointed products,
thereby providing a robust market which benefits all market
participants. Such Market-Makers also have obligations and regulatory
requirements that other participants do not have. The Exchange also
notes that an LMM may have added costs each month that it needs to
undertake in order to satisfy that heightened quoting standards (e.g.,
having to purchase additional logical connectivity). The Exchange also
notes that the incentive programs are designed to attract additional
order flow to the Exchange, wherein greater liquidity benefits all
market participants by providing more trading opportunities, tighter
spreads, and added market transparency and price discovery, and signals
to other market participants to direct their order flow to those
markets, thereby contributing to robust levels of liquidity.
    The Exchange notes the proposed change to remove footnote 43 is not
intended to address any competitive issue, but rather to eliminate an
expiring incentive program that the Exchange does not intend to extend.
    The Exchange believes the proposed rule change does not impose any
burden on intermarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed changes in
connection with the incentive programs only affect trading on Cboe
Options, as the incentive programs apply to transactions in products
exclusively listed on Cboe Options. Additionally, as noted above, the
incentive programs are designed to attract additional order flow to the
Exchange, wherein greater liquidity benefits all market participants by
providing more trading opportunities, tighter spreads, and added market
transparency and price discovery, and signals to other market
participants to direct their order flow to those markets, thereby
contributing to robust levels of liquidity. The Exchange notes it
operates in a highly competitive market. In addition to Cboe Options,
TPHs have numerous alternative venues that they may participate on and
director their order flow, including 15 other options exchanges, as
well as off-exchange venues, where competitive products are available
for trading. Based on publicly available information, no single options
exchange has more than 15% of the market share of executed volume of
options trades.\10\ Therefore, no exchange possesses significant
pricing power in the execution of option order flow. Moreover, the
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. Specifically, in Regulation NMS, the
Commission highlighted the importance of market forces in determining
prices and SRO revenues and, also, recognized that current regulation
of the market system ``has

been remarkably successful in promoting market competition in its
broader forms that are most important to investors and listed
companies.'' \11\ The fact that this market is competitive has also
long been recognized by the courts. In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . .''.\12\ Accordingly, the Exchange does not believe its
proposed changes to the incentive programs impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------

    \10\ See Cboe Global Markets, U.S. Options Market Volume Summary
by Month (December 28, 2020), available at http://markets.cboe.com/us/options/market_share/.
    \11\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \12\ NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
---------------------------------------------------------------------------

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and paragraph (f) of Rule 19b-4 \14\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend 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. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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 email to<EMAIL_ADDRESS>Please include
File Number
    SR-CBOE-2021-001 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-CBOE-2021-001. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change.
    Persons submitting comments are cautioned that we do not redact or
edit personal identifying information from comment submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CBOE-2021-001
and should be submitted on or before February 5, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-00816 Filed 1-14-21; 8:45 am]
BILLING CODE 8011-01-P