[Federal Register Volume 78, Number 40 (Thursday, February 28, 2013)]
[Rules and Regulations]
[Pages 13463-13472]
[FR Doc No: 2013-04158]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 732, 734, 736, 740, 742, 743, 744, 745, 748, 752,
754, 756, 758, 760, 762, 764, and 772

[Docket No. 120320203-2295-03]
RIN 0694-AF63

Editorial Corrections to the Export Administration Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule corrects reference and typographical errors in
the Export Administration Regulations (EAR). The corrections are
editorial in nature and do not affect license requirements.

DATES: Effective on February 28, 2013.

FOR FURTHER INFORMATION CONTACT: Robert Monjay, Office of Exporter
Services, Bureau of Industry and Security, by telephone<PHONE_NUMBER>
or email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    On November 14, 1994, by Executive Order 12938, the President
declared a national emergency with respect to the unusual and
extraordinary threat to the national security, foreign policy, and
economy of the United States posed by the proliferation of nuclear,
biological, and chemical weapons (weapons of

mass destruction) and the means of delivering such weapons. The
authority for parts 730, 734, 736, 742 and 745 of the EAR rests in part
on that executive order and the annual notices continuing the
international emergency declared therein. This rule revises the
authority citations paragraphs to parts 730, 734, 736, 742 and 745 of
the EAR (15 CFR parts 730, 734, 736, 742 and 745) to include citations
to the President's Notice of November 1, 2012--Continuation of the
National Emergency With Respect to Weapons of Mass Destruction (77 FR
66513, November 5, 2012), which is the most recent such annual notice.
    On September 23, 2001, by Executive Order 13224 (66 FR 49079, 3
CFR, 2001 Comp., p. 786), pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701-1706), the President declared a
national emergency with respect to persons who commit, threaten to
commit, or support terrorism. The authority for part 730 of the EAR
rests in part on that executive order and the annual notices continuing
the international emergency declared therein. This rule also revises
the authority citations paragraphs to part 730 of the EAR (15 CFR part
730) to include citations to the President's Notice of September 11,
2012--Continuation of the National Emergency With Respect to Persons
Who Commit, Threaten To Commit, or Support Terrorism (77 FR 56519,
September 12, 2012), which is the most recent such annual notice.
    On January 25, 1995, by Executive Order 12947 (60 FR 5079, 3 CFR,
1995 Comp., p. 356), the President declared a national emergency with
respect to the unusual and extraordinary threat to the national
security, foreign policy and economy of the United States posed by
grave acts of violence committed by terrorists who threaten to disrupt
the Middle East process. On August 20, 1998, by Executive Order 13099
(63 FR 45167, 3 CFR, 1998 Comp., p. 208), the President modified the
Annex to Executive Order 12947 to identify four additional persons who
threaten to disrupt the Middle East peace process. On February 16,
2005, by Executive Order 13372, the President clarified the steps taken
in Executive Order 12947. The national emergency declared in Executive
Order 12947 has been continued in effect through successive annual
presidential notices. The authority for Parts 730 and 744 of the EAR
(15 CFR parts 730 and 744) rests in part on Executive Order 12947, as
amended and clarified, and on the successive annual notices continuing
the emergency declared in that Executive Order. This rule revises the
authority citation paragraphs in those parts of the CFR to include a
citation to the President's Notice of January 17, 2013 (Continuation of
the National Emergency With Respect to Terrorists Who Threaten to
Disrupt the Middle East Peace Process (78 FR 4303, January 22, 2013),
which is the most recent such annual Presidential notice.

Corrections

    This final rule updates seventeen parts of the EAR to correct
spelling and typographical errors, inaccurate internal references, and
incorrect paragraph designations.
    This rule amends the EAR to update the mailing address for the
Bureau of Industry and Security (BIS). The BIS mailroom is no longer
Room 2705. Mail for BIS should now be directed to Room 2099B.
Consistent with this room change, this rule makes seventeen changes in
chapter VII, subchapter C of title 15 of the Code of Federal
Regulations, the Export Administration Regulations (EAR). Specifically,
this rule changes all references to ``Room 2705'', ``Room H2705'', or
``Room H 2705'', wherever they appear in chapter VII, subchapter C, to
the corrected ``Room 2099B''.

Part 730

    This rule corrects an error in Supplement No. 1 to Part 730 of the
EAR that was in a final rule published by BIS on March 22, 2005 (70 FR
14385, 14386). The March 22, 2005 rule contained typographical and
formatting errors in the title of the Information Collection under OMB
Control Number 0694-0102. To correct these errors, this rule restates
the title, ``Registration of U.S. Agricultural Commodities For
Exemption From Short Supply Limitations on Export, and Petitions For
The Imposition of Monitoring Or Controls On Recyclable Metallic
Materials; Public Hearings'' to remove extraneous quotation marks and
correct spelling and capitalization errors.
    This rule updates Supplement No. 3 to Part 730 of the EAR with the
correct contact information for the Directorate of Defense Trade
Controls. More specifically, Supplement No. 3 to Part 730 is modified
to remove the outdated telephone and facsimile numbers for the
Directorate of Defense Trade Controls and insert the correct telephone
and facsimile numbers and the Web site address: telephone (202) 663-
2700, facsimile<PHONE_NUMBER>, and Web site http://www.pmddtc.state.gov/index.html. This change ensures that all
information in Supplement 3 to Part 730 is correct and useful as
reference information.

Part 732

    This rule updates part 732 of the EAR by modifying the title for
Supplement No. 2 to Part 732 to ``SUPPLEMENT NO. 2 TO PART 732--SUBJECT
TO THE EAR?'' This change will make the title more applicable to
Supplement No. 2.

Part 734

    This rule updates Supplement No. 2 to Part 734 of the EAR to remove
duplicative and potentially confusing information in the address for
submission of required reports. More specifically, paragraph
(b)(2)(iii) incorrectly lists the address for the BIS Regulatory Policy
Division. Paragraph (b)(2)(iii) is modified to read ``U.S. Department
of Commerce, Bureau of Industry and Security, Regulatory Policy
Division, 14th and Pennsylvania Avenue NW., Room 2099B, Washington, DC
20230.'' This change removes the duplicative use of ``Regulatory Policy
Division'' in the address, updates the room number, and ensures that
the address block is correct.

Part 736

    This rule updates Supplement No. 1 to Part 736 of the EAR by
reformatting and renumbering the supplement to conform to CFR paragraph
structure and to include headers for each of the General Orders. More
specifically, Supplement No. 1 to Part 736 is modified by adding proper
paragraph structure and inserting the header ``General Order No. 1,''
``General Order No. 2,'' and ``General Order No. 4'' before each
applicable paragraph. This change will make this part of the EAR easier
to understand and more useful.

Part 740

    This rule corrects a typographical error in Supplement No. 1 to
Part 740 that was in a final rule published by BIS on August 5, 1997
(62 FR 42047, 42049). The August 5, 1997 rule incorrectly spelled
Tajikistan as ``Tajikstan'' in Country Group D. To correct this error,
this rule removes the word ``Tajikstan'' and replaces it with the word
``Tajikistan'' in the Country column for the Country Group D chart on
Supplement No. 1 to Part 740.

Part 742

    This rule corrects a grammatical error in Sec.  742.9 of the EAR to
create proper subject/verb agreement. More specifically, the word
``is'' at paragraph (b)(1)(ii) is removed and the word ``are'' is
inserted in its place. This change

ensures that Sec.  742.9 is clear and that users can understand its
requirements.
    This rule corrects a grammatical error in Sec.  742.10 of the EAR
to create proper subject/verb agreement. More specifically, the word
``is'' at paragraph (b)(1)(ii) is removed and the word ``are'' is
inserted in its place. This change ensures that Sec.  742.10 is clear
and that users can understand its requirements.
    This rule corrects Sec.  742.17 of the EAR for a formatting error
in a final rule published by BIS on April 13, 2009 (64 FR 17968, 17973)
by renumbering the footnotes in part 742 in sequential order. More
specifically, the footnote in Sec.  742.17 is renumbered from ``1'' to
``2'' as footnote number 1 appears in Sec.  742.10. This change
corrects an oversight whereby the footnote was added, but was numbered
``1'' as it was the only footnote to part 742 appearing in that Federal
Register Notice.

Part 744

    This rule corrects a formatting error in Supplement No. 2 to Part
744 as published by BIS on June 19, 2007 (72 FR 33646, 33658). The June
19, 2007 rule numbered the paragraphs in Category 3 out of order.
Specifically, the second paragraph was numbered (iii) and the third
paragraph was numbered (ii). To correct this error, this rule renumbers
the paragraphs of Category 3 in sequential order.

Part 748

    This rule corrects a reference error in Sec.  748.2 of the EAR as
published by BIS on July 11, 2011 (76 FR 40602, 40604), which contained
an error in the amendatory text paragraphs (a)(2) and (a)(3).
Specifically, the rule erroneously identified the Northern California
Branch as being in Irvine rather than San Jose. This rule corrects this
error, by amending the address blocks thereby ensuring that BIS offices
are properly identified.
    This rule corrects a typographical error in Supplement 4 to Part
748 of the EAR as published by BIS on March 25, 1996 (61 FR 12714,
12826). The March 25, 1996 rule contained a typographical error for the
address of the Ministere de l'Economie et des Finances, Direction
Generale des Douanes et Droits Indirects, Division des Affaires
Juridiques et Contentieuses. Specifically, the rule misidentified
``Paris Cedex 9'' as ``Paris Codex 9''. This rule corrects this error,
by amending the address block and thereby ensuring that the IC/DV
Authority in France is properly identified.

Part 752

    This rule corrects a grammatical error in Sec.  752.11 of the EAR.
Specifically, paragraphs (c)(1) through (c)(15) consist of a list of
the elements of an Internal Control Program, and the word ``and'' is
not included prior to the last item in the list. This rule corrects
this error by adding the word ``and'' at the end of paragraph (c)(14).
    This rule corrects a reference error in the title of Supplement No.
2 to Part 752 as published by BIS on April 24, 2006 (71 FR 20876,
20886). The April 24, 2006 rule incorrectly identified Supplement No. 2
to Part 752 as ``Instructions for Completing Form BIS-748P-B, `Item
Annex' ''. However, the correct form number for the ``Item Annex'' is
Form BIS-748P-A. This rule corrects this error by removing the word
``BIS-748P-B'' and inserting the word ``BIS-748P-A'' in its place.
    This rule corrects a reference error in Supplement No. 5 to Part
752 as published by BIS on May 9, 1997 (62 FR 25451, 25467). The May 9,
1997 rule incorrectly identified Supplement No. 5 to Part 752 as
``Instructions for Completing Form BIS-748-B, End-User Appendix''.
However, the correct form number for the ``End-User Appendix'' is Form
BIS-748P-B. This rule corrects this error by removing the word ``BIS-
748-B'' and inserting the word ``BIS-748P-B'' in its place.

Part 754

    This rule corrects a typographical error in Sec.  754.4 of the EAR
as published by BIS on September 22, 2003 (68 FR 50470, 50473). The
September 22, 2003 rule contained a typographical error in the
amendatory instructions for paragraph (d)(3)(ii). Specifically, the
rule used the word ``of'' in the phrase ``Shipper's Export Declaration
of Automated Export System record'' rather than the word ``or''.
Additionally, the Shipper's Export Declaration (SED) is no longer a
valid method of reporting export information, so the reference to the
SED is removed to update the EAR. This rule corrects this error by
removing ``Shipper's Export Declaration or'' and adding in its place
``The'' in paragraph (d)(3)(ii).
    This rule corrects Supplement No. 3 to Part 754 for an error in a
final rule published by BIS on March 25, 1996 (61 FR 12714, 12844). The
March 25, 1996 rule contained a typographical error, listing the
citation to the National Emergencies Act as ``() U.S.C. 1601 et
seq.).'' To correct this error, the incorrect citation is removed and
the correct citation ``(50 U.S.C. 1601 et seq.)'' is inserted in its
place.

Part 756

    This rule corrects an error in Sec.  756.1 of the EAR as published
by BIS on March 25, 1996 (61 FR 12714, 12851). The March 25, 1996 rule
incorrectly left the word ``Definitions'' in paragraph (b) when the
section was reserved. This rule corrects this error by removing the
word ``Definitions'' from paragraph (b).

Part 758

    This rule revises Sec.  758.2 of the EAR. Paragraphs (d)(1) and
(d)(2) contain contact information for the U.S. Census Bureau and
Bureau of Industry and Security. This rule inserts the word
``telephone:'' before the first phone number in each paragraph. This
change will improve the readability of Sec.  758.2.
    This rule corrects a grammatical error in Sec.  758.7 of the EAR as
published by BIS on August 21, 2003 (68 FR 50470, 50474). The August
21, 2003 rule incorrectly contained the word ``to'' rather than the
word ``of'' in the phrase ``and officials to the Office of Export
Enforcement'' of paragraph (b)(6). Additionally, the Shipper's Export
Declaration is no longer a valid method of reporting export
information, so the reference to the SED is removed to update the EAR.
This rule removes the word ``to'' and inserts the word ``of'' in its
place and removes the phrase ``SED or'' in two places in paragraph
(b)(6).

Part 760

    This rule revises Supplement No. 1 to Part 760 of the EAR to update
the required notary seal blocks. Paragraphs (I)(A), (I)(B), and (I)(C)
contain certifications that are related to boycott activities. These
certifications contain signature and notary blocks that include the
first two digits of the year. These digits are currently 19, so to
update the regulations for the 21st century 19 is changed to 20. This
change will keep the regulations current.

Part 762

    This rule corrects a citation error in Sec.  762.1 of the EAR as
published by BIS on March 25, 1996 (61 FR 12714, 12900). The March 25,
1996 rule, at paragraph (b), directed that records shall be produced
``in a manner provided by Sec.  762.6 of this part.'' However,
instructions for the production of records required to be maintained by
part 762 are contained in Sec.  762.7. To correct this error, this rule
modifies the language of paragraph (b) to ``in a manner provided by
Sec.  762.7 of this part.''
    This rule corrects a reference error in Sec.  762.2 of the EAR.
Paragraph (b)(7) identifies ``Supplement No. 3 to Part 742 High
Performance Computers;

Safeguards and related Information'' which was removed from the EAR and
reserved by a final rule published by BIS on April 21, 2006 (71 FR
20876, 20885). The April 21, 2006 rule moved the requirement for a
security safeguard plan to paragraph (c)(2) of Supplement No. 2 to Part
748, but did not revise the reference in paragraph (b)(7). To correct
this error, this rule removes the language ``Supplement No. 3 to part
742 High Performance Computers; Safeguards and related Information''
from paragraph (b)(7) and inserts the language ``Supplement No. 2 to
Part 748 paragraph (c)(2), Security Safeguard Plan requirement'' in its
place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(9) identifies ``Sec.  740.7, Humanitarian donations
(NEED)'' which was renumbered and revised by a final rule published by
BIS on December 4, 1996 (61 FR 64272, 20885). The December 4, 1996 rule
did not revise the reference in paragraph (b)(9). To correct this
error, this rule removes the language ``Sec.  740.7, Humanitarian
donations (NEED)'' and inserts the language ``Sec.  740.12,
Humanitarian donations (GFT)'' in its place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(12) identifies ``Sec.  748.4(a), Disclosure and
substantiation of facts on license applications'' which was revised by
a final rule published by BIS on July 10, 2000 (65 FR 42565, 42569).
The July 10, 2000 rule did not revise the reference in paragraph
(b)(12). To correct this error, this rule removes the language ``Sec.
748.4(a), Disclosure and substantiation of facts on license
applications'' and inserts the language ``Sec.  748.4(b), Disclosure of
parties on license applications and the power of attorney'' in its
place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(15) identifies ``Sec.  748.10, Import and End-user
Certificates'' which was revised by a final rule published by BIS on
June 19, 2007 (72 FR 33646, 33659). The June 19, 2007 rule did not
revise the reference in paragraph (b)(15). To correct this error, this
rule removes the language ``Sec.  748.10, Import and End-user
Certificates'' and inserts the language ``Sec.  748.10, Import
Certificates and End-User Statements'' in its place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(18) identifies ``Sec.  748.2(c), Obtaining forms; mailing
addresses'' which was removed by a final rule published by BIS on
August 21, 2008 (73 FR 49323, 49330). The August 21, 2008 rule did not
revise the reference in paragraph (b)(18). To correct this error, this
rule removes the language ``Sec.  748.2(c), Obtaining forms; mailing
addresses'' and inserts the language ``Sec.  748.1(d)(2), Procedure for
requesting authorization to file paper applications, notifications, or
requests'' in its place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(31) identifies ``Sec.  754.2(j)(3), Recordkeeping
requirements for deep water ballast exchange'' which was moved by a
final rule published by BIS on July 11, 2001 (76 FR 40602, 40604) to
Sec.  754.2(j)(2). The July 11, 2001 rule did not revise the reference
in paragraph (b)(18). To correct this error, this rule removes the
language ``Sec.  754.2(j)(3), Recordkeeping requirements for deep water
ballast exchange'' and inserts the language ``Sec.  754.2(j)(2),
Recordkeeping requirements for deep water ballast exchange'' in its
place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(34) identifies ``Sec.  758.1 and Sec.  758.2, Shipper's
Export Declaration or Automated Export System record.'' The Shipper's
Export Declaration is no longer a valid method of reporting export
information, so the reference is removed to update the EAR. This rule
removes ``Shipper's Export Declaration or'' from paragraph (b)(34).
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(36) identifies ``Sec.  760.6, Restrictive Trade Practices
and Boycotts'' in error. A final rule published by BIS on March 25,
1996 (61 FR 12714, 12891) identified Sec.  760.6 when that rule set out
part 760 in its entirety and did not include Sec.  760.6. The reporting
requirements of part 760 are included in Sec.  760.5, so to correct the
error, this rule removes the language ``Sec.  760.6, Restrictive Trade
Practices and Boycotts'' and inserts the language ``Sec.  760.5,
Reporting requirements'' in its place.
    This rule revises Sec.  762.2 of the EAR to correct an error.
Paragraph (b)(45), identifying ``Sec.  758.2(c), Assumption writing;
and'', was added by a final rule published by BIS on July 10, 2000 (65
FR 42565, 42573). The July 10, 2000 rule incorrectly identified Sec.
758.2(c) as the location of the written assumption requirement, rather
than Sec.  758.3(b). To correct this error, this rule removes the
language ``Sec.  758.2(c), Assumption writing'' and inserts the
language ``Sec.  758.3(b), Routed Export Transactions;'' in its place.
    This rule revises Sec.  762.2 to make it easier to understand. The
subparagraphs of paragraph (b) are reordered in sequence by citation.

Part 764

    This rule revises Sec.  764.3 of the EAR to correct an error. The
heading to paragraph (a)(1) was to be revised to read ``Civil Monetary
Penalty'' by a final rule published by BIS on August 4, 2006 (71 FR
44189, 44190); however the rule did not contain an amendatory
instruction identifying the revision to the heading. To correct this
error, this rule revises the heading to read ``Civil Monetary
Penalty.''

Part 772

    This rule revises part 772 to update the reference to the Web site
for the Automated Export System. The definition of ``Automated Export
System (AES)'' includes a reference to the former AES Web site,
``http://www.customs.ustreas.gov/impoexpo/abaesint.htm.'' Additionally,
the Shipper's Export Declaration is no longer a valid method of
reporting export information, so the reference to the SED is removed to
update the EAR. To keep the information in the EAR up to date, this
rule updates the Web site address by removing the reference ``http://www.customs.ustreas.gov/impoexpo/abaesint.htm'' and replacing it with
``http://www.census.gov/foreign-trade/aes/index.html'' in the
definition of ``Automated Export System (AES)'' and removing the
reference to the paper filing of the SED.
    This rule amends part 772 of the EAR by revising the spelling of
the word ``signaling'' to ensure a uniform spelling is used throughout
the EAR. The word ``signaling'' is spelled two ways throughout the EAR.
The British spelling of ``signalling'' is used in the definition of
``Data signalling rate'' in part 772, consistent with the text of that
definition in the Wassenaar Arrangement. The American spelling
``signaling'' is used elsewhere in the EAR, including the use of that
defined term in the applicable ECCNs. All of the definitions in the
Wassenaar Arrangement that contain the word ``signalling'' were removed
as of December 14, 2011. Therefore, in adopting a uniform spelling
throughout the EAR, the American spelling is to be used. The spelling
of the word ``signalling'' in the definition of ``Data signalling
rate'' in part 772 will be revised to ``signaling'' at two occurrences.
    This rule corrects an error in part 772 of the EAR as published by
BIS on February 18, 2005 (70 FR 8245, 8250). The February 18, 2005 rule
contained the incorrect spellings of Kazakhstan and Tajikistan in the
definition of ``Controlled country'' at part 772. To

correct this error, this rule removes the words ``Kazakstan'' and
``Tajikstan'' from the definition of ``Controlled country'' in part 772
and inserts words ``Kazakhstan'' and ``Tajikistan'' in alphabetic
order.
    This rule corrects a citation error in part 772 of the EAR as
published by BIS on March 25, 1996 (61 FR 12714, 12930). The March 25,
1996 rule contained a typographical error in the definition of
``General Prohibitions'' in part 772. Specifically, the rule
misidentified the location of the General Prohibitions in the EAR as
part 734 of the EAR, rather than part 736 of the EAR. This rule
corrects this error, by removing the citation ``734'' and inserting the
citation ``736'' in its place.
    This rule corrects an incorrect reference in part 772 of the EAR to
update the name of the Directorate of Defense Trade Controls. The
definition of ``Missile Technology Control Regime (MTCR)'' in part 772
incorrectly refers to the ``Department of State's Office of Defense
Trade Controls'' rather than the ``Department of State's Directorate of
Defense Trade Controls.'' This rule corrects this error, by removing
the words ``Office of Defense Trade Controls'' and inserting the words
``Directorate of Defense Trade Controls'' in its place. In order to
harmonize the Department of Commerce reference with the Department of
State reference, this rule adds a reference to BIS. In addition, as
this definition speaks to where the controls for items specified on the
MTCR Annex reside, this rule adds references to the EAR and
International Traffic in Arms Regulations (ITAR).
    This rule corrects part 772 of the EAR for an error in the final
rule that was published by BIS on March 25, 1996 (61 FR 12714, 12939).
The March 25, 1996 rule contained a typographical error in the
definition of ``Superalloy'' at part 772. Specifically, the rule
transposed two digits in the Celsius temperature translation from
Kelvin, listing ``694 degrees C'' rather than ``649 degrees C''. The
use of the word degrees in place of the symbol ``[deg]'' in a
temperature description is also inconsistent with the remainder of the
EAR and the Wassenaar Arrangement. This rule corrects these errors, by
removing the phrase ``694 degrees C'' and inserting the phrase
``649[deg] C'' in its place.
    This rule corrects a typographical error in part 772 of the EAR as
published by BIS on March 25, 1996 (61 FR 12714, 12940). The March 25,
1996 rule contained an error in the definition of ``Transfer laser'' in
part 772. Specifically, the rule included the word ``lasting'' instead
of the word ``lasing.'' This rule corrects this error, by removing the
word ``lasting'' and inserting the word ``lasing'' in its place.
    Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as extended by the Notice of August 15,
2012, 77 FR 49699 (August 16, 2012), has continued the EAR in effect
under the International Emergency Economic Powers Act. BIS continues to
carry out the provisions of the Export Administration Act, as
appropriate and to the extent permitted by law, pursuant to Executive
Order 13222.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``not significant
regulatory action,'' under section 3(f) of Executive Order 12866.
    2. The Department finds that there is good cause under 5 U.S.C.
553(b)(3)(B) to waive the provisions of the Administrative Procedure
Act requiring prior notice and the opportunity for public comment
because they are unnecessary. The revisions made by this rule are
administrative, not substantive, in nature and do not affect the rights
and obligations of the public. Because these revisions are not
substantive changes to the EAR, it is unnecessary to provide prior
notice and opportunity for public comment. In addition, the 30-day
delay in effectiveness required by 5 U.S.C. 553(d) is not applicable
because this rule is not a substantive rule. As stated above, these
revisions do not alter any rights or obligations, but merely correct
typographical and organizational errors in the EAR. As a result, no
benefit would be gained by delaying this rule's effectiveness for 30
days. This final rule is exempt from the analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601 et. seq.) because no general
notice of proposed rulemaking was required for this rule.

List of Subjects

15 CFR Part 730, 732, 734, 742, 743, 758, 760, 762, and 764

    Administrative practice and procedure, Reporting and recordkeeping
requirements.

15 CFR Parts 736, 745, and 756

    Administrative practice and procedure.

15 CFR Part 740, 744, 748, 752, 754, and 772

    Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
    Accordingly, parts 730, 732, 734, 736, 740, 742, 743, 744, 745,
748, 752, 754, 756, 758, 760, 762, 764, and 772 of the EAR (15 CFR
Parts 730-774) are amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for part 730 is revised to read as follows:

    Authority: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C.
1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22
U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 U.S.C.
185(s), 185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 15
U.S.C. 1824a; 50 U.S.C. app. 5; 22 U.S.C. 7201 et seq.; 22 U.S.C.
7210; E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O.
12002, 42 FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR,
1980 Comp., p. 256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918,
59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR 59099, 3
CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp.,
p. 356; E.O. 12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O.
13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR,
1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13338,
69 FR 26751, 3 CFR, 2004 Comp., p 168; Notice of May 9, 2012, 77 FR
27559 (May 10, 2012); Notice of August 15, 2012, 77 FR 49699 (August
16, 2012); Notice of September 11, 2012, 77 FR 56519 (September, 12,
2012) ; Notice of November 1, 2012, 77 FR 66513 (November 5, 2012);
Notice of January 17, 2013, 78 FR 4303 (January 22, 2013).

Supplement No. 1 to Part 730--[Amended]

0
2. Supplement No. 1 to Part 730, the title entry in the row for
collection number 0694-0102 is revised to read as follows
``Registration of U.S. Agricultural Commodities For Exemption From
Short Supply Limitations on Export, and Petitions For

The Imposition of Monitoring Or Controls On Recyclable Metallic
Materials; Public Hearings''.

Supplement No. 2 to Part 730--[Amended]

0
3. Supplement No. 2 to Part 730 is amended by removing the phrase
``Room 2705'' from paragraph (b)(1) and adding the phrase ``Room
2099B'' in its place.

Supplement No. 3 to Part 730--[Amended]

0
4. Supplement No. 3 to Part 730 is amended by revising the ``Defense
Services and Defense Articles'' section to read as follows:

Supplement No. 3 to Part 730--Other U.S. Government Departments and
Agencies With Export Control Responsibilities

* * * * *

Defense Services and Defense Articles

    *Department of State, Directorate of Defense Trade Controls,
Tel.<PHONE_NUMBER>, Fax:<PHONE_NUMBER>, Internet: http://www.pmddtc.state.gov/index.html.
* * * * *

PART 732--[AMENDED]

0
5. The authority citation for part 732 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 2012, 77
FR 49699 (August 16, 2012).

Supplement No. 2 to Part 732--[Amended]

0
6. Supplement No. 2 to Part 732 is amended by revising the title of the
supplement to read as follows:

Supplement No. 2 to Part 732--Subject to the Ear?

* * * * *

PART 734--[AMENDED]

0
7. The authority citation for part 734 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Notice of August 15, 2012, 77 FR 49699 (August 16, 2012);
Notice of November 1, 2012, 77 FR 66513 (November 5, 2012).

Supplement No. 1 to Part 734--[Amended]

0
8. Supplement No. 1 to Part 734 is amended by removing the phrase
``Room 2705'' from the Answer to Question (D)(3) and adding the phrase
``Room 2099B'' in its place.

Supplement No. 2 to Part 734--[Amended]

0
9. Supplement No. 2 to Part 734 is amended by revising paragraph
(b)(2)(iii) to read as follows:

Supplement No. 2 to Part 734--Guidelines for De Minimis Rules

* * * * *
    (b) * * *
    (2) * * *
    (iii) Mail or Hand Delivery/Courier: U.S. Department of
Commerce, Bureau of Industry and Security, Regulatory Policy
Division, 14th and Pennsylvania Avenue NW., Room 2099B, Washington,
DC 20230.
* * * * *

PART 736--[AMENDED]

0
10. The authority citation for part 736 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 2151 note; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp.,
p. 168; Notice of May 9, 2012, 77 FR 27559 (May 10, 2012); Notice of
August 15, 2012, 77 FR 49699 (August 16, 2012); Notice of November
1, 2012, 77 FR 66513 (November 5, 2012).

0
11. Supplement No. 1 to Part 736 is revised to read as follows:

Supplement No. 1 to Part 736--General Order

    (a) General Order No. 1:
    General Order No. 1 of September 16, 1998; Establishing a 24-
month validity period on reexport authorizations issued without a
validity period and revoking those exceeding that period.
    (1) Reexport authorizations issued within 24-months of the
General Order. All reexport authorizations issued with no validity
period within the 24-months preceding September 16, 1998 shall be
deemed to have an expiration date which shall be the date 24-months
from the date of issuance of the reexport authorization or November
16, 1998, whichever is longer.
    (2) Reexport authorizations issued before the 24-month period
preceding the General Order. For reexport authorizations issued with
no validity period before the 24-month period preceding September
16, 1998:
    (i) Effective September 16, 1998, all such outstanding reexport
authorizations for terrorist-supporting countries (see parts 742 and
746 of the EAR) are revoked.
    (ii) Effective November 16, 1998, all other such outstanding
reexport authorizations are revoked.
    (3) Extensions. If necessary, you may request extensions of such
authorizations according to procedures set forth in Sec.  750.7(g)
of the EAR.
    (4) Specific Notice from BIS. If you have received, or should
you receive, specific notice from BIS with regard to a reexport
authorization covered by this General Order, informing you of a
revocation, suspension, or revision (including validity period) of
any such reexport authorization, then the terms of that specific
notice will be controlling.
    (5) Definition of ``authorization''. The term ``authorization''
as used in this General Order encompasses the range of reexport
authorizations granted by BIS, which includes licenses, individual
letters, and other types of notifications.
    (b) General Order No. 2:
    General Order No. 2; section 5(b) of the Syria Accountability
and Lebanese Sovereignty Restoration Act of 2003 (SAA) gives the
President authority to waive the application of certain prohibitions
set forth in the SAA if the President determines that it is in the
national security interest of the United States to do so. The
President made such a determination in Executive Order 13338,
finding that it was ``in the national security interest of the
United States to waive application of subsection 5(a)(1) and
5(a)(2)(A) of the SAA so as to permit the exportation or
reexportation of certain items as specified in the Department of
Commerce's General Order No. 2.'' The President's reference to
General Order No. 2 addresses applications to export and reexport
the following items, which are considered on a case-by-case basis as
opposed to the general policy of denial set forth in section 746.9
of the Regulations: Items in support of activities, diplomatic or
otherwise, of the United States Government (to the extent that
regulation of such exportation or reexportation would not fall
within the President's constitutional authority to conduct the
nation's foreign affairs); medicine (on the CCL) and medical devices
(both as defined in part 772 of the EAR); parts and components
intended to ensure the safety of civil aviation and the safe
operation of commercial passenger aircraft; aircraft chartered by
the Syrian Government for the transport of Syrian Government
officials on official Syrian Government business; telecommunications
equipment and associated computers, software and technology; and
items in support of United Nations operations in Syria. The total
dollar value of each approved license for aircraft parts for flight
safety normally will be limited to no more than $2 million over the
24-month standard license term, except in the case of complete
overhauls.
    Note to General Order No. 2: The controls for exports and
reexports to Syria are set forth in Sec.  746.9 of the EAR.
    (c) General Order No. 3 [Reserved]
    (d) General Order No. 4:
    General Order No. 4 of June 13, 2008, as amended on September 3,
2009, amending existing licenses for exports of consolidated gift
parcels to Cuba due to changes in License Exception GFT.

    (1) Section 740.12(a) of the EAR authorizes, among other things,
certain exports of gift parcels to Cuba pursuant to a license
exception. However, consolidated shipments of multiple gift parcels
to Cuba require a license even if all of the individual items within
the consolidated gift parcel would be eligible for this license
exception if shipped alone.
    (2) Notwithstanding any statements to the contrary on the
license itself, licenses authorizing the export to Cuba of
consolidated gift parcels described in paragraph (a) of this order
that are valid on September 3, 2009 authorize the export of
consolidated shipments to Cuba of gift parcels that comply with the
requirements of License Exception GFT found in Sec.  740.12(a) of
the EAR as of September 3, 2009.
    (3) This General Order does not change any of the other terms
(including total value of items that may be exported or expiration
date) of the licenses it affects.

PART 740--[AMENDED]

0
12. The authority citation for part 740 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 15, 2012, 77 FR 49699 (August 16, 2012).

Sec.  740.17  [Amended]

0
13. Section 740.17 is amended by removing the phrase ``Room 2705'' from
paragraph (e)(1)(ii)(A) and adding the phrase ``Room 2099B'' in its
place.

Supplement No. 1 to Part 740--[Amended]

0
14. Supplement No. 1 to Part 740 is amended by removing the word
``Tajikstan'' from the Country Column of the Country Group D chart and
adding in its place ``Tajikistan''.

PART 742--[AMENDED]

0
15. The authority citation for part 742 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 15, 2012, 77 FR 49699 (August 16, 2012); Notice of
November 1, 2012, 77 FR 66513 (November 5, 2012).

0
16. Section 742.9 is amended by revising paragraph (b)(1)(ii) to read
as follows:

Sec.  742.9  Anti-terrorism: Syria.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Military-related items controlled for national security
reasons to any destination. These are items that contain NS Column 1 in
the Country Chart column of the ``License Requirements'' section in an
ECCN on the CCL and are controlled by equipment or material entries
ending in the number ``18.''
* * * * *

0
17-18. Section 742.10 is amended by revising paragraph (b)(1)(ii) to
read as follows:

Sec.  742.10  Anti-terrorism: Sudan.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Military-related items controlled for national security
reasons to any destination. These are items that contain NS Column 1 in
the Country Chart column of the ``License Requirements'' section in an
ECCN on the CCL and are controlled by equipment or material entries
ending in the number ``18.''
* * * * *

Sec.  742.15  [Amended]

0
19. Section 742.15 is amended by removing the phrase ``Room 2705'' from
paragraph (c)(2)(ii)(A) and adding the phrase ``Room 2099B'' in its
place.

Sec.  742.17  [Amended]

0
20. Section 742.17 is amended by redesignating footnote 1 in paragraph
(a) as footnote 2 in the text of paragraph (a) and in the text of the
footnote.

PART 743--[AMENDED]

0
21. The authority citation for part 743 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

Sec.  743.1  [Amended]

0
22. Section 743.1 is amended in paragraph (g)(1) by removing the phrase
``Room 2705'' and adding the phrase ``Room 2099B'' in its place.

PART 744--[AMENDED]

0
23. The authority citation for part 744 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 15, 2012, 77 FR 49699
(August 16, 2012); Notice of September 11, 2012, 77 FR 56519
(September 12, 2012); Notice of November 1, 2012, 77 FR 66513
(November 5, 2012); Notice of January 17, 2013, 78 FR 4303 (January
22, 2013).

Supplement No. 2 to Part 744--[Amended]

0
24. Supplement No. 2 to Part 744 is amended by correcting the paragraph
designation for (3)(iii) as (3)(ii) and the designation for (3)(ii) as
(3)(iii).

PART 745--[AMENDED]

0
25. The authority citation for part 745 is revised to read as follows:

    Authority: 50 U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3
CFR, 1994 Comp., p. 950; Notice of November 1, 2012, 77 FR 66513
(November 5, 2012).

PART 748--[AMENDED]

0
26. The authority citation for part 748 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 2012, 77
FR 49699 (August 16, 2012).

Sec.  748.1  [Amended]

0
27. Section 748.1 is amended in paragraph (d)(2) by removing the phrase
``Room H2705'' and adding the phrase ``Room 2099B'' in its place.

0
28. Section 748.2 is amended by revising paragraphs (a)(2) and (3) to
read as follows:

Sec.  748.2  Obtaining forms; mailing addresses.

    (a) * * *
    (2) Bureau of Industry and Security, Western Regional Office, U.S.
Department of Commerce, 2302 Martin St., Suite 330, Irvine, CA 92612,
Tel:<PHONE_NUMBER>, Fax:<PHONE_NUMBER>, or
    (3) Bureau of Industry and Security, Western Regional Office,
Northern California Branch, U.S. Department of Commerce, 160 W. Santa
Clara Street, Suite 725, San Jose, CA 95113, Tel:<PHONE_NUMBER> or
(408) 998-8806, Fax:<PHONE_NUMBER>.
* * * * *

Sec.  748.13  [Amended]

0
29. Section 748.13 is amended in paragraph (c)(2) by removing the
phrase ``Room 2705'' and adding the phrase ``Room 2099B'' in its place.

Sec.  748.15  [Amended]

0
30. Section 748.15 is amended in paragraphs (a)(1) and (f)(1)(ii) by
removing the phrase ``Room 2705'' and adding the phrase ``Room 2099B''
in its place.

Supplement No. 4 to Part 748--[Amended]

0
31. Supplement No. 4 to Part 748 is amended in the address column of
the France entry by removing the word ``Codex'' and adding in its place
``Cedex''.

Supplement No. 5 to Part 748--[Amended]

0
32. Supplement No. 5 to Part 748 is amended in paragraph (a)(2)(i) by
removing the phrase ``Room 2705'' and adding the phrase ``Room 2099B''
in its place.

PART 752--[AMENDED]

0
33. The authority citation for part 752 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 2012, 77
FR 49699 (August 16, 2012).

0
34. Section 752.11 is amended by revising paragraph (c)(14) to read as
follows:

Sec.  752.11  Internal Control Programs.

* * * * *
    (c) * * *
    (14) A system for assuring compliance with controls over exports
and reexports for missile-related end-uses and end-users described in
Sec.  744.3 of the EAR; and
* * * * *

Sec.  752.17  [Amended]

0
35. Section 752.17 is amended by removing the phrase ``Room 2705'' and
adding the phrase ``Room 2099B'' in its place.

0
36. Supplement 2 to Part 752 is amended by revising the heading to read
as follows:

Supplement No. 2 to Part 752-- Instructions for Completing Form BIS-
748P-A, ''Item Annex''

* * * * *

0
37. Supplement 5 to Part 752 is amended by revising the heading to read
as follows:

Supplement No. 5 to Part 752-- Instructions for Completing Form BIS-
748P-B, End-User Appendix

* * * * *

PART 754--[AMENDED]

0
38. The authority citation for part 754 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 30 U.S.C. 185(s), 185(u); 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; E.O. 11912, 41 FR
15825, 3 CFR, 1976 Comp., p. 114; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783; Notice of August 15, 2012, 77 FR 49699 (August
16, 2012).

0
39. Section 754.4 is amended by revising paragraph (d)(3)(ii) to read
as follows:

Sec.  754.4  Unprocessed western red cedar.

* * * * *
    (d) * * *
    (3) * * *
    (ii) The Automated Export System record.
* * * * *

Sec.  754.6  [Amended]

0
40. Section 754.6 is amended in paragraph (c) by removing the phrase
``Room 2705'' and adding the phrase ``Room 2099B'' in its place.

Sec.  754.7  [Amended]

0
41. Section 754.7 is amended in paragraph (d) by removing the phrase
``Room 2705'' and adding the phrase ``Room 2099B'' in its place.

Supplement No. 3 to Part 754--[Amended]

0
42. Supplement No. 3 to Part 754 is amended in paragraph (3) in the
``Public Law 104-58 Sec. 201 Exports of Alaskan North Slope Oil.''
section by removing ``() U.S.C. 1601 et seq.)'' and adding in its place
``(50 U.S.C. 1601 et seq.)''.

PART 756--[AMENDED]

0
43. The authority citation for part 756 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

Sec.  756.1  [Amended]

0
44. Section 756.1 is amended by removing the subject heading to
reserved paragraph (b).

PART 758--[AMENDED]

0
45. The authority citation for part 758 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

0
46. Section 758.2 is amended by revising paragraphs (d)(1) and (2) to
read as follows:

Sec.  758.2  Automated Export System (AES).

* * * * *
    (d) * * *
    (1) For additional information on the AES in general, please
contact: Chief Foreign Trade Division, U.S. Census Bureau, telephone:
(301) 457-2255, facsimile:<PHONE_NUMBER>.
    (2) For information about BIS's Option 4 approval process to use
AES Option 4 for items subject to the EAR, contact: Director, Office of
Enforcement Analysis, Bureau of Industry and Security, telephone: (202)
482-4255, facsimile:<PHONE_NUMBER>.

Sec.  758.4  [Amended]

0
47. Section 758.4 is amended in paragraph (c) by removing the phrase
``Room 2705'' and adding the phrase ``Room 2099B'' in its place.

Sec.  758.5  [Amended]

0
48. Section 758.5 is amended in paragraph (e)(2)(ii) by removing the
phrase ``Room 2705'' and adding the phrase ``Room 2099B'' in its place.

0
49. Section 758.7 is amended by revising the second sentence of
paragraph (b)(6) to read as follows:

Sec.  758.7  Authority of the Office of Export Enforcement, the Bureau
of Industry and Security, Customs offices and Postmasters in clearing
shipments.

* * * * *
    (b) * * *
    (6) * * * In addition to the authority of Customs officers to seize
and detain items, both Customs officials and officials of the Office of
Export Enforcement are authorized to detain any shipment held for
review of the AES record, or if there is no AES record, the bill of
lading or other loading document covering the items about to be
exported, or for physical inspection of the items, whenever such action
is deemed to be necessary to assure compliance with the EAR.
* * * * *

PART 760--[AMENDED]

0
50. The authority citation for part 760 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

Supplement No. 1 to Part 760--[Amended]

0
51. Supplement 1 to Part 760 is amended by removing the year reference
``19----'' and adding in its place ``20----'' in three (3) places in
section 1.

PART 762--[AMENDED]

0
52. The authority citation for part 762 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

Sec.  762.1  [Amended]

0
53. Section 762.1 is amended in paragraph (b) by removing the reference
``Sec.  762.6'' and adding in its place ``Sec.  762.7''.

0
54. Section 762.2 is amended by revising paragraph (b) to read as
follows:

Sec.  762.2  Records to be retained.

* * * * *
    (b) Records retention references. Paragraph (a) of this section
describes records that are required to be retained. Other parts,
sections, or supplements of the EAR which require the retention of
records or contain recordkeeping provisions, include, but are not
limited to the following:
    (1) Sec.  732.6, Steps for other requirements;
    (2) Sec.  734.4(g), de minimis calculation (method);
    (3) Part 736, General Prohibitions;
    (4) Sec.  740.1, Introduction (to License Exceptions);
    (5) [RESERVED]
    (6) Sec.  740.10(c), Servicing and replacement of parts and
equipment (RPL);
    (7) [RESERVED]
    (8) Sec.  740.12, Humanitarian donations (GFT);
    (9) Sec.  740.13(f), Technology and software--unrestricted (TSU);
    (10) [RESERVED]
    (11) Sec.  743.1, Wassenaar reports;
    (12) Sec.  743.2, High Performance Computers;
    (13) [RESERVED]
    (14) Sec.  745.1, Annual reports;
    (15) Sec.  745.2, End-use certificates;
    (16) Sec.  746.3 Iraq;
    (17) Part 747, Special Iraq Reconstruction License;
    (18) Sec.  748.1(d)(2), Procedure for requesting authorization to
file paper applications, notifications, or requests;
    (19) Sec.  748.4(b), Disclosure of parties on license applications
and the power of attorney;
    (20) Sec.  748.6, General instructions for license applications;
    (21) Sec.  748.9, Support documents for license applications;
    (22) Sec.  748.10, Import Certificates and End-User Statements;
    (23) Sec.  748.11, Statement by Ultimate Consignee and Purchaser;
    (24) Sec.  748.13, Delivery Verification (DV);
    (25) Sec.  748.14, Exports of firearms;
    (26) Supplement No. 2 to Part 748 paragraph (c)(2), Security
Safeguard Plan requirement;
    (27) Sec.  750.7, Issuance of license and acknowledgment of
conditions;
    (28) Sec.  750.8, Revocation or suspension of license;
    (29) Sec.  750.9, Duplicate licenses;
    (30) Sec.  750.10, Transfer of licenses for export;
    (31) Sec.  752.7, Direct shipment to customers;
    (32) Sec.  752.9, Action on SCL applications;
    (33) Sec.  752.10, Changes to the SCL;
    (34) Sec.  752.11, Internal Control Programs;
    (35) Sec.  752.12, Recordkeeping requirements;
    (36) Sec.  752.13, Inspection of records;
    (37) Sec.  752.14, System reviews;
    (38) Sec.  752.15, Export clearance;
    (39) Sec.  754.2(j)(2), Recordkeeping requirements for deep water
ballast exchange
    (40) Sec.  754.4, Unprocessed western red cedar;
    (41) Sec.  758.1 and Sec.  758.2, Automated Export System record;
    (42) Sec.  758.1(h), Record and proof of agent's authority;
    (43) Sec.  758.3(b), Routed Export Transactions;
    (44) Sec.  758.6, Destination control statements;
    (45) Sec.  760.5, Reporting requirements;
    (46) Sec.  762.2, Records to be retained;
    (47) Sec.  764.2, Violations;
    (48) Sec.  764.5, Voluntary self-disclosure; and
    (49) Sec.  766.10, Subpoenas.
* * * * *

PART 764--[AMENDED]

0
55. The authority citation for part 772 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

Sec.  764.3  [Amended]

0
56. Section 764.3 is amended by:
0
a. Revising the paragraph (a)(1) subject heading to read ``Civil
monetary penalty''; and
0
b. Removing from paragraph (a)(2) the phrase ``Room H 2705'' and adding
the phrase ``Room 2099B'' in its place.

PART 772--[AMENDED]

0
57. The authority citation for part 772 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).

0
58. Section 772.1 is amended by revising the definitions of ``Automated
Export System (AES)'', ``Controlled country'', ``Data Signalling
Rate'', ``General Prohibitions'', ``Missile Technology Control Regime
(MTCR)'', ``Superalloy'', and ``Transfer laser'' to read as follows:

Sec.  772.1  Definitions of terms as used in the Export Administration
Regulations (EAR).

* * * * *
    Automated Export System (AES). AES is a nationwide system
operational at all ports and for all methods of transportation through
which export shipment data required by multiple agencies is filed
electronically to Customs, using the efficiencies of Electronic Data
Interchange (EDI). AES allows the export information to be collected
electronically and edited immediately. For more information about AES,
visit the Bureau of Census Web site at: http://www.customs.ustreas.gov/impoexpo/abaesint.htm.
* * * * *
    Controlled country. Countries designated controlled for national
security purposes under authority delegated to the Secretary of
Commerce by Executive Order 12214 of May 2, 1980 pursuant to section
5(b) of the EAA. The controlled countries are: Albania, Armenia,
Azerbaijan, Belarus, Cambodia, Cuba, the People's Republic of China,
Georgia, Iraq, Kazakhstan, Kyrgyzstan, Laos, Macau, Moldova, Mongolia,
North Korea, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, and
Vietnam. All of the controlled countries except Cuba are listed in
Country Group D:1 of the EAR. Cuba is listed in Country Group E:2. This
definition does not apply to part 768 of the EAR (Foreign
Availability), which provides a dedicated definition.
* * * * *
    ``Data signaling rate.'' (Cat 5) means the rate, as defined in ITU
Recommendation 53-36, taking into account that, for non-binary
modulation, baud and bit per second are not equal. Bits for coding,
checking and synchronization functions are to be included.

    Note: When determining the ``data signaling rate'', servicing
and administrative channels shall be excluded.

    Technical Note: It is the maximum one-way rate, i.e., the
maximum rate in either transmission or reception.

* * * * *
    General prohibitions. The 10 prohibitions found in part 736 of the
EAR that prohibit certain exports,

reexports, and other conduct, subject to the EAR, absent a license,
license exception, or determination that no license is required
(``NLR'').
* * * * *
    Missile Technology Control Regime (MTCR). The United States and
other nations in this multilateral control regime have agreed to
guidelines for restricting the export and reexport of dual-use items
that may contribute to the development of missiles. The MTCR Annex
lists missile-related equipment and technology controlled either by the
Department of Commerce's Bureau of Industry and Security--Export
Administration Regulations (15 CFR Parts 730 through 799) or by the
Department of State's Directorate of Defense Trade Controls--
International Traffic in Arms Regulations (22 CFR Parts 120 through
130).
* * * * *
    ``Superalloy''. (Cat 2 and 9)--Nickel-, cobalt-, or iron-base
alloys having strengths superior to any alloys in the AISI 300 series
at temperatures over 922 K (649 [deg]C) under severe environmental and
operating conditions.
* * * * *
    ``Transfer laser''. (Cat 6)--A ``laser'' in which the lasing
species is excited through the transfer of energy by collision of a
non-lasing atom or molecule with a lasing atom or molecule species.
* * * * *

    Dated: February 19, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2013-04158 Filed 2-27-13; 8:45 am]
BILLING CODE 3510-33-P


[Federal Register Volume 88, Number 224 (Wednesday, November 22, 2023)]
[Notices]
[Pages 81449-81454]
[FR Doc No: 2023-25771]

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

[Release No. 34-98964; File No. SR-NYSEARCA-2023-79]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Connectivity Fee Schedule

November 16, 2023.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on November 9, 2023, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') 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 self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend the Connectivity Fee Schedule
regarding colocation services and fees to provide Users with wireless
connectivity to CME Group market data. The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, 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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the Connectivity Fee Schedule (``Fee
Schedule'') regarding colocation services and fees to provide Users \4\
with wireless connectivity to CME Group market data.\5\
---------------------------------------------------------------------------

    \4\ For purposes of the Exchange's colocation services, a
``User'' means any market participant that requests to receive
colocation services directly from the Exchange. See Securities
Exchange Act Release No. 76010 (September 29, 2015), 80 FR 60197
(October 5, 2015) (SR-NYSEArca-2015-82). As specified in the Fee
Schedule, a User that incurs colocation fees for a particular
colocation service pursuant thereto would not be subject to
colocation fees for the same colocation service charged by the
Exchange's affiliates the New York Stock Exchange LLC, NYSE American
LLC, NYSE Chicago, Inc., and NYSE National, Inc. (together, the
``Affiliate SROs''). Each Affiliate SRO has submitted substantially
the same proposed rule change to propose the changes described
herein. See SR-NYSE-2023-44, SR-NYSEAMER-2023-59, SR-NYSECHX-2023-
22, and SR-NYSENAT-2023-26.
    \5\ The Exchange filed a similar proposal in 2021, which it
subsequently withdrew. See Securities Exchange Act Release No. 93810
(December 17, 2021), 86 FR 73026 (December 23, 2021) (SR-NYSE-2021-
67, SR-NYSEAMER-2021-43, SR-NYSEARCA-2021-97, SR-NYSECHX-2021-17,
SR-NYSENAT-2021-23).
---------------------------------------------------------------------------

    The Exchange currently provides Users with wireless connections to
eight market data feeds or combinations of feeds from third-party
markets (the ``Existing Third Party Data''),\6\ and wired connections
to more than 45 market data feeds or combinations of feeds.\7\ The
Exchange proposes to add to the Fee Schedule wireless connections to
CME Group, Inc. (``CME Group'') market data (``CME Group Data'' and,
together with the Existing Third Party Data, the ``Third Party Data'').
Users would be offered the proposed wireless connection to the CME
Group Data through connections into the colocation center in the
Mahwah, New Jersey data center (``MDC'').\8\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release Nos. 76749 (December 23,
2015), 80 FR 81640 (December 30, 2015) (SR-NYSEArca-2015-99); 78377
(July 21, 2016), 81 FR 49327 (July 27, 2016) (SR-NYSEARCA-2016-99);
and 80116 (February 28, 2017), 82 FR 12663 (March 6, 2017) (SR-
NYSEArca-2017-18).
    \7\ See Securities Exchange Act Release No. 80310 (March 24,
2017), 82 FR 15763 (March 30, 2017) (SR-NYSEArca-2016-89).
    \8\ Through its Fixed Income and Data Services (``FIDS'')
(previously ICE Data Services) business, Intercontinental Exchange,
Inc. (``ICE'') operates the MDC. The Exchange and the Affiliate SROs
are indirect subsidiaries of ICE. The proposed service would be
provided by FIDS pursuant to an agreement with a non-ICE entity.
FIDS does not own the wireless network that would be used to provide
the service.
---------------------------------------------------------------------------

    The Exchange expects that the proposed rule change would become

operative in the fourth quarter of 2023, and in any event, no later
than December 31, 2023. The Exchange will announce the date that the
wireless connection to the CME Group Data will be available through a
customer notice.
    To receive CME Group Data, the User would enter into an agreement
with a third party for permission to receive the data, if required. The
User would pay this third party any fees for the data content.
    The Exchange proposes to revise the Fee Schedule to reflect fees
related to the wireless connection to CME Group Data. For each wireless
connection to CME Group Data, a User would be charged a $5,000 non-
recurring initial charge and a monthly recurring charge of $6,000. If a
User were to purchase more than one wireless connection to CME Group
Data, it would pay more than one non-recurring initial charge. Each
proposed wireless connection would include the use of one port for
connectivity to CME Group Data, and a User would not pay a separate fee
for the use of such port.\9\
---------------------------------------------------------------------------

    \9\ If a User also connects to Existing Third Party Data, it
would not be able to connect to such Existing Third Party Data using
the same port that it uses for connectivity to CME Group Data.
---------------------------------------------------------------------------

    The Exchange's proposed wireless connectivity to CME Group market
data would not include the entire CME Group market data feed, which
includes market data for approximately 1,200 futures symbols. Wireless
bandwidth capacity is a small fraction of the capacity required to
transport the full CME Group feed. Accordingly, FIDS has consulted with
customers about which of the CME Group symbols they would like to be
available wirelessly and plans to offer connectivity to a subgroup of
symbols based on this customer feedback. The Exchange understands that
Quincy Data LLC (``Quincy''),\10\ a third party that already provides
wireless connectivity to CME Group market data in the MDC, similarly
provides wireless connectivity to a subset of CME Group market data
based on customer demand for particular symbols.\11\
---------------------------------------------------------------------------

    \10\ The Exchange understands that Quincy is an affiliate of
McKay Brothers LLC.
    \11\ The Exchange understands that the third parties that
provide wireless connectivity to CME Group market data to the MDC
and other data centers in New Jersey (as discussed later in this
filing) follow a substantially similar model, offering wireless
connectivity to a selection of market data rather than to entire
feeds.
---------------------------------------------------------------------------

Application and Impact of the Proposed Changes
    The proposed changes would not apply differently to distinct types
or sizes of market participants. Rather, they would apply to all Users
equally.
    As is currently the case, the purchase of any colocation service,
including connectivity to Third Party Data, is completely voluntary and
the Fee Schedule is applied uniformly to all Users.
Competitive Environment
    The Exchange operates in a highly competitive market in which other
vendors offer colocation services as a means to facilitate the trading
and other market activities of those market participants who believe
that colocation enhances the efficiency of their operations. 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.'' \12\
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------

    As explained below in this filing, the Exchange's proposed wireless
connection to CME Group Data would compete with the wireless connection
to CME Group market data provided by Quincy. Third-party vendors such
as Quincy are not at any competitive disadvantage created by the
Exchange.
    The proposed change is not otherwise intended to address any other
issues relating to colocation services or related fees, and the
Exchange is not aware of any problems that Users would have in
complying with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\13\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\14\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in 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
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange further believes
that the proposed rule change is consistent with Section 6(b)(4) of the
Act,\15\ because it provides for the equitable allocation of reasonable
dues, fees, and other charges among its members and issuers and other
persons using its facilities and does not unfairly discriminate between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

The Proposed Change Is Reasonable
    The Exchange believes that the proposed rule change is reasonable.
In considering the reasonableness of proposed services and fees, the
Commission's market-based test considers ``whether the exchange was
subject to significant competitive forces in setting the terms of its
proposal . . . , including the level of any fees.'' \16\ If the
Exchange meets that burden, ``the Commission will find that its
proposal is consistent with the Act unless `there is a substantial
countervailing basis to find that the terms' of the proposal violate
the Act or the rules thereunder.'' \17\ Here, the Exchange is subject
to significant competitive forces in setting the terms on which it
offers its proposal, in particular because substantially similar
substitutes are available, and the Exchange has not placed the third
party vendors at a competitive disadvantage created by the Exchange.
---------------------------------------------------------------------------

    \16\ See Securities Exchange Act Release No. 90209 (October 15,
2020), 85 FR 67044, 67049 (October 21, 2020) (Order Granting
Accelerated Approval to Establish a Wireless Fee Schedule Setting
Forth Available Wireless Bandwidth Connections and Wireless Market
Data Connections) (SR-NYSE-2020-05, SR-NYSEAMER-2020-05, SR-
NYSEArca-2020-08, SR-NYSECHX-2020-02, SR-NYSENAT-2020-03, SR-NYSE-
2020-11, SR-NYSEAMER-2020-10, SR-NYSEArca-2020-15, SR-NYSECHX-2020-
05, SR-NYSENAT-2020-08) (``Wireless Approval Order''), citing
Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR
74770, 74781 (December 9, 2008) (``2008 ArcaBook Approval Order'').
See NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \17\ See Wireless Approval Order, supra note 16, at 67049,
citing 2008 ArcaBook Approval Order, supra note 16, at 74781.
---------------------------------------------------------------------------

Substantially Similar Substitutes Are Available
    The Exchange's proposed wireless connection to CME Group Data would
compete with other methods by which both the Exchange and various third
parties already provide connectivity to CME Group market data to Users.
    Quincy already provides wireless connectivity to CME Group market
data in the MDC. Like the Exchange's

proposed wireless connectivity, Quincy's wireless connectivity to CME
Group market data includes a similarly-sized subset of symbols that
almost completely overlaps with the symbols for which the Exchange
proposes to provide wireless connectivity--presumably because customers
have requested the same symbols of each provider. Specifically, like
the Quincy wireless connection, the Exchange's proposed wireless
connection would include the main futures for equity indices,
government bonds, foreign exchanges, oil, and precious metals.\18\ In
addition, the Exchange's proposed wireless connection would also
include several additional symbols that proposed Users have
specifically requested be included. The Exchange plans to continuously
monitor Users' preferences and their views of the usefulness of the
included symbols, and may adjust them accordingly. The Exchange
believes that the Quincy wireless connection to CME Group market data
is at a same or similar speed as the Exchange's proposed connection,
and at a similar price.\19\
---------------------------------------------------------------------------

    \18\ Quincy's symbol list for wireless connectivity to CME Group
data is available at https://www.quincy-data.com/product-page/
under the heading ``2023 Quincy Extreme Data Symbol Set/North
America QED Symbol Set.'' The Exchange understands that the Quincy
wireless connection to CME Group data currently includes 26 symbols.
The Exchange's proposed wireless connection to CME Group data would
contain a similar number of symbols, nearly all of which are
included in the Quincy wireless connection.
    \19\ Because Quincy is not a regulated entity, it is not
obligated to make its latency figures or fees publicly available or
the same for all entities.
---------------------------------------------------------------------------

    Accordingly, the Quincy wireless connection to CME Group market
data would compete with the Exchange's proposed wireless connection,
and would exert significant competitive forces on the Exchange in
setting the terms of its proposal, including the level of the
Exchange's proposed fees.\20\ If the Exchange were to set its proposed
fees too high, Users could respond by instead selecting Quincy's
substantially similar wireless connectivity to CME Group data.\21\
---------------------------------------------------------------------------

    \20\ See 2008 ArcaBook Approval Order, supra note 16, at 74789
and n.295 (recognizing that products need not be identical to be
substitutable).
    \21\ In addition, the Exchange believes that at least two third-
party market participants, in addition to FIDS, offer fiber
connections to CME Group market data in colocation. See Securities
Exchange Act Release No. 81013 (June 23, 2017), 82 FR 29604 (June
29, 2017) (SR-NYSEARCA-2017-62). Unlike the proposed wireless
connectivity, FIDS' fiber connection to CME Group market data
includes the entire CME Group data feed, instead of a subset of
symbols.
---------------------------------------------------------------------------

Third Party Competitors Are Not at a Competitive Disadvantage Created
by the Exchange
    The Exchange does not believe that FIDS would have any competitive
advantage over either the existing third-party provider or any future
providers of wireless connectivity to CME Group market data. The
Exchange's proposed service for connectivity to CME Group Data does not
have any special access to or advantage within the MDC. The Exchange's
proposed wireless connection would lead to a pole, from which a fiber
connection would lead into the MDC. The pole is owned by a third party
and is not on the grounds of the MDC, and the path into the MDC through
a meet-me-room is available to any telecommunications provider. Within
the MDC, the proposed connection would follow the same route as that of
any User, connecting to equipment in colocation and then to any Users
that are customers.
    Further, all distances in the MDC are normalized and Exchange rules
require that the distance from the Patch Panel Point to each User
cabinet in colocation be the same.\22\ Every provider of wireless
connectivity to Users, including FIDS, is connected to the Patch Panel
Point, and the length of the fiber path from the Patch Panel Point to
each User cabinet in colocation is the same.
---------------------------------------------------------------------------

    \22\ See NYSE Rule 3.13(c), NYSE American Rule 3.13E(c), NYSE
Arca Rule 3.13(c), NYSE Chicago Rule 3.13(c), and NYSE National Rule
3.13(c) (Data Center Pole Restrictions--Connectivity to Co-Location
Space). ``Patch Panel Point'' is defined as ``the patch panel where
fiber connections for wireless services connect to the network row
in the space used for co-location in the Data Center.'' Id. The
proposed service would not use the MDC pole, so Rule 3.13(b) would
not apply.
---------------------------------------------------------------------------

    Nor does the Exchange have a competitive advantage over the third-
party competitors offering wireless connectivity to CME Group market
data by virtue of the fact that it owns and operates the MDC's meet-me-
rooms. Users purchasing wireless connectivity to CME Group market
data--like Users of any other colocation service--would require a
circuit connecting out of the MDC, and in most cases, such circuits are
provided by third-party telecommunications service providers that have
installed their equipment in the MDC's two meet-me-rooms
(``Telecoms'').\23\ Currently, 16 Telecoms operate in the meet-me-rooms
and provide a variety of circuit choices. It is in the Exchange's best
interest to set the fees that Telecoms pay to operate in the meet-me-
rooms at a reasonable level \24\ so that market participants, including
Telecoms, will maximize their use of the MDC. By setting the meet-me-
room fees at a reasonable level, the Exchange encourages Telecoms to
participate in the meet-me-rooms and to sell circuits to Users for
connecting into and out of the MDC. These Telecoms then compete with
each other by pricing such circuits at competitive rates. These
competitive rates for circuits help draw in more Users and Hosted
Customers to the MDC, which directly benefits the Exchange by
increasing the customer base to whom the Exchange can sell its
colocation services, which include cabinets, power, ports, and
connectivity to many third-party data feeds, and because having more
Users and Hosted Customers leads, in many cases, to greater
participation on the Exchange. In this way, by setting the meet-me-room
fees at a level attractive to telecommunications firms, the Exchange
spurs demand for all of the services it sells at the MDC, while setting
the meet-me-room fees too high would negatively affect the Exchange's
ability to sell its services at the MDC.\25\ Accordingly, there are
real constraints on the meet-me-room fees the Exchange charges, such
that the Exchange does not have an advantage in terms of costs when
compared to third parties that enter the MDC through the meet-me-rooms
to provide services to compete with the Exchange's services.
---------------------------------------------------------------------------

    \23\ Note that in the case of wireless connectivity, a User in
colocation still requires a fiber circuit to transport data. If a
Telecom is used, the data is transmitted wirelessly to the relevant
pole, and then from the pole to the meet-me-room using a fiber
circuit.
    \24\ See Securities Exchange Act Release No. 98000 (July 26,
2023), 88 FR 50244 (August 1, 2023) (SR-NYSEARCA-2023-47) (``MMR
Notice'').
    \25\ See id. at 50247. Importantly, the Exchange is prevented
from making any alteration to its meet-me-room services or fees
without filing a proposal for such changes with the Commission.
---------------------------------------------------------------------------

    If anything, the Exchange is subject to a competitive disadvantage
vis-[agrave]-vis third-party competitors offering wireless connectivity
to CME Group market data. Third-party competitors are not subject to
the Commission's filing requirements, and therefore can freely change
their services and pricing in response to competitive forces. In
contrast, the Exchange's service and pricing would be standardized as
set out in this filing, and the Exchange would be unable to respond to
pricing pressure from its competitors without seeking a formal fee
change in a filing before the Commission.
    In sum, because the Exchange is subject to significant competitive
forces in setting the terms on which it offers its proposal, in
particular because a substantially similar substitute is available, and
the Exchange has not

placed the third-party vendors at a competitive disadvantage created by
the Exchange, the proposed fees for the Exchange's wireless
connectivity to CME Group Data are reasonable.\26\ If the Exchange were
to set its prices for wireless connectivity to CME Group Data at a
level that Users found to be too high, Users could easily choose to
connect to CME Group market data in colocation at the MDC through the
competing Quincy wireless connection, as detailed above.
---------------------------------------------------------------------------

    \26\ See Wireless Approval Order, supra note 16.
---------------------------------------------------------------------------

Additional Considerations
    The Exchange believes that it is reasonable for the proposed
wireless connection to CME Group Data not to transport information for
all of the symbols included in CME Group data feeds to the MDC, but
rather to transport a subset of that data. Wireless bandwidth capacity
is a small fraction of the capacity required to transport the full CME
Group feed. The Exchange believes it is reasonable for FIDS to select
the symbols it will make available for wireless connectivity based on
customer input and demand. The Exchange understands that Quincy
similarly provides wireless connectivity to a subset of CME Group
market data based on customer demand for particular symbols.
    The Exchange believes that it is reasonable that a User that
connects to both CME Group Data and Existing Third Party Data may not
use the same port for connectivity to both, and so would have at least
two ports, because the proposed wireless connection would include the
use of one port for connectivity to CME Group Data, and the
connectivity to the Existing Third Party Data includes the use of one
port for connectivity to Existing Third Party Data. A User would not
pay a separate fee for using such ports.
The Proposed Change Is an Equitable Allocation of Fees and Credits
    The Exchange believes that its proposal equitably allocates its
fees among Users. Without this proposed rule change, Users would have
fewer options for connectivity to CME Group market data. The proposed
change would provide Users with an additional choice with respect to
the form and optimal latency of the connectivity they use to receive
CME Group market data, allowing a User to select the connectivity that
better suits its needs, helping it tailor its colocation operations to
the requirements of its business operations. Users that do not opt to
utilize the Exchange's proposed wireless connection would still be able
to obtain CME Group market data wirelessly using Quincy's wireless
connection.
    The Exchange believes that the proposed change is equitable because
it will result in fees being charged only to Users that voluntarily
select to receive the corresponding services and because those services
will be available to all Users. Furthermore, the Exchange believes that
the services and fees proposed herein are equitably allocated because,
in addition to the services being completely voluntary, they are
available to all Users on an equal basis (i.e., the same products and
services are available to all Users). All Users that voluntarily select
the Exchange's proposed wireless connections to CME Group Data would be
charged the same amount for the same services.
The Proposed Change Is Not Unfairly Discriminatory
    The Exchange believes that the proposed rule change is not unfairly
discriminatory, for the following reasons. Without this proposed rule
change, Users would have fewer options for connectivity to CME Group
Data. The proposed change would provide Users with an additional choice
with respect to the form and optimal latency of the connectivity they
use to receive CME Group market data, allowing a User to select the
connectivity that better suits its needs, helping it tailor its
colocation operations to the requirements of its business operations.
Users that do not opt to utilize the Exchange's proposed wireless
connection would still be able to obtain CME Group market data
wirelessly using Quincy's wireless connection.
    The Exchange believes that it is not unfairly discriminatory to not
transport information for all of the symbols included in CME Group data
feeds to the MDC, but rather to transport a subset of that data. There
is limited bandwidth available on the wireless network to colocation,
and there are a number of CME Group data feeds. Limiting the feeds to
the selection of CME Group market data regarding securities for which
FIDS determines there is demand would allow Users to receive the
relevant CME Group Data over a wireless network.
    The Exchange believes that the proposed change is not unfairly
discriminatory because it will result in fees being charged only to
Users that voluntarily select to receive the corresponding services and
because those services will be available to all Users. Furthermore, the
Exchange believes that the services and fees proposed herein are not
unfairly discriminatory because, in addition to the services being
completely voluntary, they are available to all Users on an equal basis
(i.e., the same products and services are available to all Users). All
Users that voluntarily select wireless connections to CME Group Data
would be charged the same amount for the same services. Users that opt
to use wireless connections to CME Group Data would receive the CME
Group Data that is available to all Users, as all market participants
that contract with CME Group or its affiliate for CME Group Data, as
required, may receive it.
    For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable colocation fees, requirements,
terms, and conditions established from time to time by the Exchange.

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

    The Exchange believes that the proposal will not impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of Section 6(b)(8) of the Act.\27\
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    \27\ 15 U.S.C. 78f(b)(8).
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    The proposed change would not affect competition among national
securities exchanges or among members of the Exchange, but rather
between FIDS and its commercial competitors. The proposed wireless
connection would provide Users with an alternative means of
connectivity to CME Group Data. The proposed change would provide Users
with an additional choice with respect to the form and optimal latency
of the connectivity they use to receive CME Group market data, allowing
a User to select the connectivity that better suits its needs, helping
it tailor its colocation operations to the requirements of its business
operations.
    Users that do not opt to utilize the Exchange's proposed wireless
connection would still be able to obtain CME Group market data
wirelessly using Quincy's wireless connection. The Exchange's proposed
wireless connection and the existing Quincy wireless connection to CME
Group market data are sufficiently similar substitutes and thus provide
market participants with choices to meet their wireless connectivity
needs.
    In addition, the Exchange does not believe that FIDS would have any
competitive advantage over either the existing third-party provider or
any future providers of wireless connectivity to CME Group market data.
The

Exchange's proposed service for connectivity to CME Group Data does not
have any special access to or advantage within the MDC. The Exchange's
proposed wireless connection would lead to a pole, from which a fiber
connection would lead into the MDC. The pole is owned by a third party
and is not on the grounds of the MDC, and the path into the MDC through
a meet-me-room is the same path followed by any Telecom. Within the
MDC, the proposed connection would follow the same route as that of any
User, connecting to equipment in colocation and then to any Users that
are customers.
    Further, all distances in the MDC are normalized and Exchange rules
require that the distance from the Patch Panel Point to each User
cabinet in colocation be the same.\28\ Every provider of wireless
connectivity to Users, including FIDS, is connected to the Patch Panel
Point, and the length of the fiber path from the Patch Panel Point to
each User cabinet in colocation is the same.
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    \28\ See supra note 22.
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    Nor does the Exchange have a competitive advantage over the third-
party competitors offering wireless connectivity to CME Group market
data by virtue of the fact that it owns and operates the MDC's meet-me-
rooms. Users purchasing wireless connectivity to CME Group market
data--like Users of any other colocation service--would require a
circuit connecting out of the MDC, and in most cases, such circuits are
provided by third-party Telecoms that have installed their equipment in
the MDC's two meet-me-rooms.\29\ Currently, 16 Telecoms operate in the
meet-me-rooms and provide a variety of circuit choices. It is in the
Exchange's best interest to set the fees that Telecoms pay to operate
in the meet-me-rooms at a reasonable level \30\ so that market
participants, including Telecoms, will maximize their use of the MDC.
By setting the meet-me-room fees at a reasonable level, the Exchange
encourages Telecoms to participate in the meet-me-rooms and to sell
circuits to Users for connecting into and out of the MDC. These
Telecoms then compete with each other by pricing such circuits at
competitive rates. These competitive rates for circuits help draw in
more Users and Hosted Customers to the MDC, which directly benefits the
Exchange by increasing the customer base to whom the Exchange can sell
its colocation services, which include cabinets, power, ports, and
connectivity to many third-party data feeds, and because having more
Users and Hosted Customers leads, in many cases, to greater
participation on the Exchange. In this way, by setting the meet-me-room
fees at a level attractive to telecommunications firms, the Exchange
spurs demand for all of the services it sells at the MDC, while setting
the meet-me-room fees too high would negatively affect the Exchange's
ability to sell its services at the MDC.\31\ Accordingly, there are
real constraints on the meet-me-room fees the Exchange charges, such
that the Exchange does not have an advantage in terms of costs when
compared to third parties that enter the MDC through the meet-me-rooms
to provide services to compete with the Exchange's services.
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    \29\ See supra note 23.
    \30\ See MMR Notice, supra note 24.
    \31\ See supra note 25.
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    If anything, the Exchange is subject to a competitive disadvantage
vis-[agrave]-vis third party competitors offering wireless connectivity
to CME Group market data. Third-party competitors are not subject to
the Commission's filing requirements, and therefore can freely change
their services and pricing in response to competitive forces. In
contrast, the Exchange's service and pricing would be standardized as
set out in this filing, and the Exchange would be unable to respond to
pricing pressure from its competitors without seeking a formal fee
change in a filing before the Commission.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \32\ and Rule 19b-4(f)(6) thereunder.\33\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \32\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \33\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \34\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\35\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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    \34\ 17 CFR 240.19b-4(f)(6).
    \35\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of such 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 shall institute proceedings under
Section 19(b)(2)(B) \36\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \36\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
file number SR-NYSEARCA-2023-79 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-NYSEARCA-2023-79. 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 (https://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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSEARCA-2023-79 and should
be submitted on or before December 13, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
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    \37\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25771 Filed 11-21-23; 8:45 am]
BILLING CODE 8011-01-P