[Federal Register Volume 87, Number 242 (Monday, December 19, 2022)]
[Rules and Regulations]
[Pages 77491-77493]
[FR Doc No: 2022-27405]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-0395; Project Identifier MCAI-2021-01048-T;
Amendment 39-22272; AD 2022-25-16]
RIN 2120-AA64

Airworthiness Directives; ATR-GIE Avions de Transport
R[eacute]gional Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: The FAA is superseding Airworthiness Directive (AD) 2018-18-
05, which applied to certain ATR-GIE Avions de Transport
R[eacute]gional Model ATR42-200, -300, and -320 airplanes; and AD 2020-
09-16, which applied to all ATR-GIE Avions de Transport R[eacute]gional
Model ATR42-200, -300, and -320 airplanes. AD 2018-18-05 and AD 2020-
09-16 required revising the existing maintenance or inspection program,
as applicable, to incorporate new or more restrictive airworthiness
limitations. This AD is prompted by a determination that additional new
or more restrictive airworthiness limitations are necessary. This AD
retains the requirements of AD 2020-09-16. This AD also requires
revising the existing maintenance or inspection program, as applicable,
to incorporate additional new or more restrictive maintenance
requirements and airworthiness limitations, as specified in a European
Union Aviation Safety Agency (EASA) AD, which is incorporated by
reference. The FAA is issuing this AD to address the unsafe condition
on these products.

DATES: This AD is effective January 23, 2023.
    The Director of the Federal Register approved the incorporation by
reference of a certain publications listed in this AD as of January 23,
2023.
    The Director of the Federal Register approved the incorporation by
reference of a certain other publication listed in this AD as of June
22, 2020 (85 FR 29596, May 18, 2020).

ADDRESSES:
    AD Docket: You may examine the AD docket at regulations.gov under
Docket No. FAA-2022-0395; or in person at Docket Operations between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD
docket contains this final rule, the mandatory continuing airworthiness
information (MCAI), any comments received, and other information. The
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.
    Material Incorporated by Reference:
     For material incorporated by reference in this AD, contact
EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email [email protected]; website easa.europa.eu. You may
find this material on the EASA website at ad.easa.europa.eu.
     You may view this material at the FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St., Des
Moines, WA. For information on the availability of this material at the
FAA, call<PHONE_NUMBER>. It is also available in the AD docket at
regulations.gov by searching for and locating Docket No. FAA-2022-0395.

FOR FURTHER INFORMATION CONTACT: Shahram Daneshmandi, Aerospace
Engineer, Large Aircraft Section, FAA, International Validation Branch,
2200 South 216th St., Des Moines, WA 98198; telephone<PHONE_NUMBER>;
email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 to supersede AD 2018-18-05, Amendment 39-19384 (83 FR
44463, August 31, 2018) (AD 2018-18-05), which applied to certain ATR-
GIE Avions de Transport R[eacute]gional Model ATR42-200, -300, and -320
airplanes; and AD 2020-09-16, Amendment 39-19912 (85 FR 29596, May 18,
2020) (AD 2020-09-16), which applied to all ATR-GIE Avions de Transport
R[eacute]gional Model ATR42-200, -300, and -320 airplanes. AD 2018-18-
05 and AD 2020-09-16 required revising the existing maintenance or
inspection program, as applicable, to incorporate new or more
restrictive airworthiness limitations. AD 2020-09-16 also specified
that accomplishing the maintenance or inspection program revision
required by paragraph (g) of that AD terminates the requirements of AD
2018-18-05. The FAA issued AD 2018-18-05 and AD 2020-09-16 to prevent
reduced structural integrity of the airplane.
    The NPRM published in the Federal Register on April 6, 2022 (87 FR
19818). The NPRM was prompted by AD 2021-0211, dated September 17,
2021, issued by EASA, which is the Technical Agent for the Member
States of the European Union (EASA AD 2021-0211) to correct an unsafe
condition.
    In the NPRM, the FAA proposed to retain the requirements of AD
2020-09-16. The NPRM also proposed to require revising the existing
maintenance or inspection program, as applicable, to incorporate new or
more restrictive airworthiness limitations, as specified in EASA AD
2021-0211.
    The FAA issued a supplemental notice of proposed rulemaking (SNPRM)
to amend 14 CFR part 39 to supersede AD 2018-18-05 and AD 2020-09-16.
The SNPRM published in the Federal Register on September 23, 2022 (87
FR 58038) (the SNPRM). The SNPRM was prompted by a determination that
additional new or more restrictive airworthiness limitations are
necessary; these limitations are specified in EASA AD 2022-0062, dated
April 8, 2022 (EASA AD 2022-0062) (also referred to as the MCAI), which
superseded EASA AD 2021-0211. In the SNPRM, the FAA proposed to retain
the requirements of AD 2020-09-16. The SNPRM also proposed to require
revising the existing maintenance or inspection program, as applicable,
to incorporate additional new or more restrictive maintenance
requirements and airworthiness limitations, as specified in EASA AD
2022-0062. The FAA is issuing this AD to prevent reduced structural
integrity of the airplane.
    You may examine the MCAI in the AD docket at regulations.gov under
Docket No. FAA-2022-0395.

Discussion of Final Airworthiness Directive

Comments

    The FAA received a comment from the Air Line Pilots Association,
International (ALPA), who supported the SNPRM without change.

Conclusion

    This product has been approved by the aviation authority of another
country and is approved for operation in the United States. Pursuant to
the FAA's bilateral agreement with this State of Design Authority, it
has notified the FAA of the unsafe condition described in the MCAI
referenced above. The FAA reviewed the relevant data, considered the
comment received, and determined that air safety requires adopting the
AD as proposed. Accordingly, the FAA is issuing this AD to address the
unsafe condition on this product. This AD is adopted as proposed in the
SNPRM.

Related Service Information Under 1 CFR Part 51

    EASA AD 2022-0062 describes new or more restrictive maintenance
tasks and airworthiness limitations for airplane structures and
components.
    This AD also requires EASA AD 2019-0256, dated October 17, 2019,
which the Director of the Federal Register approved for incorporation
by reference as of June 22, 2020 (85 FR 29596, May 18, 2020).
    This material is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in ADDRESSES.

Costs of Compliance

    The FAA estimates that this AD affects 26 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:
    The FAA estimates the total cost per operator for the retained
actions from AD 2020-09-16 to be $7,650 (90 work-hours x $85 per work-
hour).
    The FAA has determined that revising the existing maintenance or
inspection program takes an average of 90 work-hours per operator,
although the agency recognizes that this number may vary from operator
to operator. Since operators incorporate maintenance or inspection
program changes for their affected fleet(s), the FAA has determined
that a per-operator estimate is more accurate than a per-airplane
estimate.
    The FAA estimates the total cost per operator for the new actions
to be $7,650 (90 work-hours x $85 per work-hour).

Authority for This Rulemaking

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

Regulatory Findings

    The FAA has determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive 2018-18-05, Amendment 39-19384 (83
FR 44463, August 31, 2018); and AD 2020-09-16, Amendment 39-19912 (85
FR 29596, May 18, 2020); and
0
b. Adding the following new airworthiness directive:

2022-25-16 ATR-GIE Avions de Transport R[eacute]gional: Amendment
39-22272; Docket No. FAA-2022-0395; Project Identifier MCAI-2021-
01048-T

(a) Effective Date

    This airworthiness directive (AD) is effective January 23, 2023.

(b) Affected ADs

    This AD replaces AD 2018-18-05, Amendment 39-19384 (83 FR 44463,
August 31, 2018) (AD 2018-18-05); and AD 2020-09-16, Amendment 39-
19912 (85 FR 29596, May 18, 2020) (AD 2020-09-16).

(c) Applicability

    This AD applies to all ATR-GIE Avions de Transport
R[eacute]gional Model ATR42-200, -300, and -320 airplanes,
certificated in any category.

(d) Subject

    Air Transport Association (ATA) of America Code 05, Time Limits/
Maintenance Checks.

(e) Unsafe Condition

    This AD was prompted by a determination that new or more
restrictive airworthiness limitations are necessary. The FAA is
issuing this AD to prevent reduced structural integrity of the
airplane.

(f) Compliance

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

(g) Retained Revision of the Existing Maintenance or Inspection
Program, With New Terminating Action

    This paragraph restates the requirements of paragraph (g) of AD
2020-09-16, with a new terminating action. Except as specified in
paragraph (h) of this AD: Comply with all required actions and
compliance times specified in, and in accordance with, European
Union Aviation Safety Agency (EASA) AD 2019-0256, dated October 17,
2019 (EASA AD 2019-0256). Accomplishing the revision of the existing
maintenance or inspection program required by paragraph (j) of this
AD terminates the requirements of this paragraph.

(h) Retained Exceptions to EASA AD 2019-0256, With No Changes

    This paragraph restates the exceptions specified in paragraph
(h) of AD 2020-09-16, with no changes.
    (1) The requirements specified in paragraphs (1) and (3) of EASA
AD 2019-0256 do not apply to this AD.
    (2) Where paragraph (2) of EASA AD 2019-0256 refers to its
effective date, this AD requires using June 22, 2020 (the effective
date of AD 2020-09-16).
    (3) Paragraph (4) of EASA AD 2019-0256 specifies revising ``the
approved AMP'' within 12 months after its effective date, but

this AD requires revising the existing maintenance or inspection
program, as applicable, to incorporate the ``limitations, tasks and
associated thresholds and intervals'' specified in paragraph (4) of
EASA AD 2019-0256 within 90 days after June 22, 2020 (the effective
date of AD 2020-09-16).
    (4) The initial compliance time for doing the tasks specified in
paragraph (4) of EASA AD 2019-0256 is at the applicable ``associated
thresholds'' specified in paragraph (4) of EASA AD 2019-0256, or
within 90 days after June 22, 2020 (the effective date of AD 2020-
09-16), whichever occurs later.
    (5) The provisions specified in paragraphs (5) and (6) of EASA
AD 2019-0256 do not apply to this AD.
    (6) This AD does not adopt the ``Remarks'' section of EASA AD
2019-0256.

(i) Retained Restrictions on Alternative Actions, Intervals, and
Critical Design Configuration Control Limitations (CDCCLs), With New
Exception

    This paragraph restates the requirements of paragraph (i) of AD
2020-09-16, with a new exception. Except as required by paragraph
(j) of this AD, after the existing maintenance or inspection program
has been revised as required by paragraph (g) of this AD, no
alternative actions (e.g., inspections), intervals, and CDCCLs are
allowed unless they are approved as specified in the provisions of
the ``Ref. Publications'' section of EASA AD 2019-0256.

(j) New Revision of the Existing Maintenance or Inspection Program

    Except as specified in paragraph (k) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2022-0062, dated April 8, 2022 (EASA AD
2022-0062). Accomplishing the revision of the existing maintenance
or inspection program required by this paragraph terminates the
requirements of paragraph (g) of this AD.

(k) Exceptions to EASA AD 2022-0062

    (1) The requirements specified in paragraph (1) and (2) of EASA
AD 2022-0062 do not apply to this AD.
    (2) Paragraph (3) of EASA AD 2022-0062 specifies revising ``the
approved AMP'' within 12 months after its effective date, but this
AD requires revising the existing maintenance or inspection program,
as applicable, within 90 days after the effective date of this AD.
    (3) The initial compliance time for doing the tasks specified in
paragraph (3) of EASA AD 2022-0062 is at the applicable
``limitations'' and ``associated thresholds'' as incorporated by the
requirements of paragraph (3) of EASA AD 2022-0062, or within 90
days after the effective date of this AD, whichever occurs later.
    (4) The provisions specified in paragraphs (4) and (5) of EASA
AD 2022-0062 do not apply to this AD.
    (5) This AD does not adopt the ``Remarks'' section of EASA AD
2022-0062.

(l) New Provisions for Alternative Actions, Intervals, and CDCCLs

    After the existing maintenance or inspection program has been
revised as required by paragraph (j) of this AD, no alternative
actions (e.g., inspections), intervals, and CDCCLs are allowed
unless they are approved as specified in the provisions of the
``Ref. Publications'' section of EASA AD 2022-0062.

(m) Additional AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Validation Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or responsible Flight Standards Office, as
appropriate. If sending information directly to the International
Validation Branch, send it to the attention of the person identified
in paragraph (n) of this AD. Information may be emailed to: [email protected]. Before using any approved AMOC, notify your
appropriate principal inspector, or lacking a principal inspector,
the manager of the responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, International
Validation Branch, FAA; or EASA; or ATR-GIE Avions de Transport
R[eacute]gional's EASA Design Organization Approval (DOA). If
approved by the DOA, the approval must include the DOA-authorized
signature.

(n) Additional Information

    For more information about this AD, contact Shahram Daneshmandi,
Aerospace Engineer, Large Aircraft Section, FAA, International
Validation Branch, 2200 South 216th St., Des Moines, WA 98198;
telephone<PHONE_NUMBER>; email [email protected]

(o) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (3) The following service information was approved for IBR on
January 23, 2023.
    (i) European Union Aviation Safety Agency (EASA) AD 2022-0062,
dated April 8, 2022 (EASA AD 2022-0062).
    (ii) [Reserved]
    (4) The following service information was approved for IBR on
June 22, 2020 (85 FR 29596, May 18, 2020).
    (i) EASA AD 2019-0256, dated October 17, 2019.
    (ii) [Reserved]
    (5) For EASA ADs 2022-0062 and 2019-0256, contact EASA, Konrad-
Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 000;
email [email protected]; website easa.europa.eu. You may find these
EASA ADs on the EASA website at ad.easa.europa.eu.
    (6) You may view this service information at FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St.,
Des Moines, WA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>.
    (7) You may view this material that is incorporated by reference
at the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, email:
[email protected], or go to: www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on December 1, 2022.
Christina Underwood,
Acting Director, Compliance & Airworthiness Division, Aircraft
Certification Service.
[FR Doc. 2022-27405 Filed 12-16-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 14 (Thursday, January 22, 2015)]
[Notices]
[Pages 3294-3299]
[FR Doc No: 2015-00964]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74058; File No. SR-NYSEArca-2014-114]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendments No. 1 and No. 2 and Order Granting Accelerated Approval
of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, to
List and Trade Shares of the iShares Interest Rate Hedged 0-5 Year High
Yield Bond ETF, iShares Interest Rate Hedged 10+ Year Credit Bond ETF,
and the iShares Interest Rate Hedged Emerging Markets Bond ETF Under
NYSE Arca Equities Rule 8.600

January 15, 2015.

I. Introduction

    On September 29, 2014, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the
iShares Interest Rate Hedged 0-5 Year High Yield Bond ETF (``High Yield
Bond Fund''), iShares Interest Rate Hedged 10+ Year Credit Bond ETF
(``Credit Bond Fund''), and the iShares Interest Rate Hedged Emerging
Markets Bond ETF (``Emerging Markets Bond Fund'') (collectively ``the
Funds'') under NYSE Arca Equities Rule 8.600. The proposed rule change
was published for comment in the Federal Register on October 17,
2014.\3\ The Commission received one supporting comment on the
proposal,\4\ and on

November 18, 2014, the Exchange filed Amendment No 1. to the proposed
rule change, which entirely replaced and superseded its proposal as
originally filed.\5\ The Commission designated a longer period for
Commission action.\6\ On January 14, 2015, the Exchange filed Amendment
No. 2 to the proposed rule change.\7\ The Commission is publishing this
notice to solicit comments on Amendments No. 1 and No. 2 from
interested persons, and is approving the proposed rule change, as
modified by Amendment Nos. 1 and 2, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 73342 (Oct. 10,
2014), 79 FR 62492.
    \4\ Letter to SEC from Anonymous Commenter, dated November 7,
2014. Comments regarding the proposed rule change are available on
the Commission's Web site at: http://www.sec.gov/comments/sr-nysearca-2014-114/nysearca2014114.shtml.
    \5\ In Amendment No. 1, the Exchange (1) clarified that there
presently is no sub-adviser to the Funds; (2) specified that US
Treasury futures are a type of interest rate future; (3) provided
more information about the Federal Funds futures the Funds may hold;
(4) clarified the scope of the investment restriction on illiquid
assets; (5) clarified one aspect of the net asset value calculation
process for the Funds; (6) supplemented the information that would
be provided in the disclosed portfolios of the Funds; and (7)
clarified the availability of price information regarding the Funds'
holdings.
    \6\ See Securities Exchange Act Release No. 73659 (Nov. 20,
2014), 79 FR 70607 (Nov. 26, 2014). The Commission designated a
longer period within which to take action on the proposed rule
change to provide more time for it to consider the proposed rule
change, as modified by Amendment No. 1.
    \7\ In Amendment No. 2, the Exchange stated that (1) with
respect to corporate bond issuances, the Adviser expects that under
normal circumstances, each of the Funds will generally seek to
invest in corporate bond issuances that have at least $100,000,000
par amount outstanding in developed countries and at least
$200,000,000 par amount outstanding in emerging market countries;
and (2) with respect to each Fund's investments in fixed-income
securities, no fixed-income security (excluding Treasury Securities,
government-sponsored entity and other exempted securities) will
represent more than 30% of the weight of that Fund's total assets,
and the five highest weighted fixed income securities held by that
Fund (excluding Treasury Securities, government-sponsored entity and
other exempted securities) will not in the aggregate account for
more than 65% of the weight of that Fund's total assets.
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II. Description of Proposed Rule Change

A. In General

    The Exchange proposes to list and trade the Shares under NYSE Arca
Equities Rule 8.600, which governs the listing and trading of Managed
Fund Shares on the Exchange. The Shares will be offered by iShares U.S.
ETF Trust (``Trust''),\8\ a registered open-end management investment
company. BlackRock Fund Advisors (``BFA'') will be the investment
adviser for the Funds (the ``Adviser'').\9\ BFA is an indirect wholly-
owned subsidiary of BlackRock, Inc. BlackRock Investments, LLC will be
the principal underwriter and distributor of the Funds' Shares. State
Street Bank and Trust Company will serve as administrator, custodian
and transfer agent for the Funds.
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    \8\ The Trust is registered under the 1940 Act. According to the
Exchange, on December 6, 2013, the Trust filed with the Commission
registration statements on Form N-1A relating to the Funds
(``Registration Statements'') (File Nos. 333-179904 and 811-22649).
In addition, the Commission has issued an order granting certain
exemptive relief to the Trust under the 1940 Act. See Investment
Company Act Release No. 29571 (File No. 812-13601) (``Exemptive
Order'').
    \9\ The Exchange represents that the Adviser is not registered
as a broker-dealer, but is affiliated with multiple broker-dealers.
The Exchange further represents that the Adviser has implemented a
``fire wall'' with respect to its broker-dealer affiliates regarding
access to information concerning the composition of and changes to
the Funds' portfolio. In addition, according to the Exchange, in the
event (a) the Adviser or any sub-adviser becomes, or becomes newly
affiliated with, a broker-dealer, or (b) any new adviser or sub-
adviser is, or becomes affiliated with, a broker-dealer, the Adviser
or any new adviser or sub-adviser, as applicable, will implement a
fire wall with respect to its relevant personnel or its broker-
dealer affiliate regarding access to information concerning the
composition of and changes to the Funds' portfolio, and will be
subject to procedures designed to prevent the use and dissemination
of material, non-public information regarding such portfolio.
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B. The Exchange's Description of the Funds

    The Exchange has made the following representations and statements
in describing the Funds and its investment strategies, including other
portfolio holdings and investment restrictions.\10\
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    \10\ Additional information regarding the Trust, the Funds, and
the Shares, including investment strategies, risks, net asset value
(``NAV'') calculation, creation and redemption procedures, fees,
portfolio holdings disclosure policies, distributions, and taxes,
among other information, is included in the Amendments No. 1, No. 2,
and the Registration Statements, as applicable. See Amendment No. 1,
supra note 5, Amendment No. 2, supra note 7, and Registration
Statements, supra note 8.
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1. Principal Investments of the iShares Interest Rate Hedged 0-5 Year
High Yield Bond ETF
    The High Yield Bond Fund will seek to mitigate the interest rate
risk of a portfolio composed of U.S. dollar-denominated, high yield
corporate bonds with remaining maturities of less than five years. This
Fund will seek to achieve its investment objective by investing, under
normal circumstances,\11\ at least 80% of its net assets in U.S.
dollar-denominated high yield corporate bonds with remaining maturities
of less than five years, in one or more investment companies (exchange-
traded and non-exchange-traded) that principally invest in high yield
bonds, in U.S. Treasury securities (or cash equivalents), and by taking
short positions in U.S. Treasury futures, other interest rate futures
contracts, and interest rate swaps.\12\
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    \11\ The term ``under normal circumstances'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the equity markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption or any similar intervening
circumstance.
    \12\ All Funds will invest only in futures contracts that are
traded on an exchange that is a member of the Intermarket
Surveillance Group (``ISG'') or with which the Exchange has in place
a comprehensive surveillance sharing agreement. Swaps will be
centrally cleared. All derivatives held by the Funds will be
collateralized.
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    The High Yield Bond Fund intends to initially invest a substantial
portion of its assets in one underlying fund, the iShares 0-5 Year High
Yield Corporate Bond ETF (the ``Underlying High Yield Corporate Bond
Fund''). This Fund will attempt to mitigate the interest rate risk
primarily through the use of U.S. Treasury futures contracts and
interest rate swaps. The High Yield Bond Fund may also take short
positions in other interest rate futures contracts, including but not
limited to, Eurodollar and Federal Funds futures.
    BFA will utilize a model-based proprietary investment process to
assemble an investment portfolio composed of (i) long positions in the
Underlying High Yield Corporate Bond Fund, (ii) long positions in U.S.
dollar-denominated high yield corporate bonds, (iii) long positions in
U.S. Treasury securities, and (iv) short positions in U.S. Treasury
futures, other interest rate futures contracts, and interest rate
swaps. The Exchange notes that the short positions are expected to
have, in the aggregate, approximately equivalent duration to the
underlying securities in the Underlying High Yield Corporate Bond Fund
and to the high yield corporate bonds. By taking these short positions,
BFA will seek to mitigate the potential impact of rising interest rates
on the performance of the Underlying High Yield Corporate Bond Fund and
the high yield corporate bonds (conversely also limiting the potential
positive impact of falling interest rates). The short positions will
not be intended to mitigate other factors influencing the price of high
yield bonds, such as credit risk, which may have a greater impact than
rising or falling interest rates. Relative to a long-only investment in
the same high yield bonds, the High Yield Bond Fund's investment
strategy is designed to outperform in a rising interest rate
environment and underperform in a falling interest rate environment.

2. Principal Investments of the iShares Interest Rate Hedged 10+ Year
Credit Bond ETF
    The Credit Bond Fund will seek to mitigate the interest rate risk
of a portfolio composed of investment-grade U.S. corporate bonds and
U.S. dollar-denominated bonds, including those of non-U.S. corporations
and governments, with remaining maturities greater than ten years. This
Fund will seek to achieve its investment objective by investing, under
normal circumstances,\13\ at least 80% of its net assets in investment-
grade U.S. corporate bonds and U.S. dollar-denominated bonds, including
those of non-U.S. corporations and governments, with remaining
maturities greater than ten years, in one or more investment companies
(exchange-traded and non-exchange-traded) that principally invest in
investment-grade bonds, in U.S. Treasury securities (or cash
equivalents), and by taking short positions in U.S. Treasury futures,
other interest rate futures contracts, and interest rate swaps.\14\
---------------------------------------------------------------------------

    \13\ See supra note 11.
    \14\ See supra note 12.
---------------------------------------------------------------------------

    The Credit Bond Fund intends to initially invest a substantial
portion of its assets in one underlying fund, the iShares 10+ Year
Credit Bond ETF (the ``Underlying Credit Bond Fund''). The Credit Bond
Fund will attempt to mitigate the interest rate risk primarily through
the use of U.S. Treasury futures contracts and interest rate swaps. The
Credit Bond Fund may also invest in other interest rate futures
contracts, including but not limited to, Eurodollar and Federal Funds
futures.
    BFA will utilize a model-based proprietary investment process to
assemble an investment portfolio composed of (i) long positions in the
Underlying Credit Bond Fund, (ii) long positions in U.S. dollar-
denominated investment-grade corporate bonds, (iii) long positions in
U.S. Treasury securities, and (iv) short positions in U.S. Treasury
futures, other interest rate futures contracts, and interest rate
swaps. The short positions are expected to have, in the aggregate,
approximately equivalent duration to the underlying securities in the
Underlying Credit Bond Fund and to the investment-grade corporate
bonds. By taking these short positions, BFA will seek to mitigate the
potential impact of rising interest rates on the performance of the
Underlying Credit Bond Fund and the investment-grade corporate bonds
(conversely also limiting the potential positive impact of falling
interest rates). Further, the short positions are not intended to
mitigate other factors influencing the price of investment-grade bonds,
such as credit risk, which may have a greater impact than rising or
falling interest rates. Relative to a long-only investment in the same
investment-grade bonds, the Credit Bond Fund's investment strategy is
designed to outperform in a rising interest rate environment and
underperform in a falling interest rate environment.
3. Principal Investments of the iShares Interest Rate Hedged Emerging
Markets Bond ETF
    The Emerging Markets Bond Fund will seek to mitigate the interest
rate risk of a portfolio composed of U.S. dollar-denominated, emerging
market bonds. This Fund will seek to achieve its investment objective
by investing, under normal circumstances,\15\ at least 80% of its net
assets in U.S. dollar-denominated emerging market bonds, in one or more
investment companies (exchange-traded and non-exchange-traded) that
principally invest in emerging market bonds, in U.S. Treasury
securities (or cash equivalents), and by taking short positions in U.S.
Treasury futures, other interest rate futures contracts, and interest
rate swaps.\16\
---------------------------------------------------------------------------

    \15\ See supra note 11.
    \16\ See supra note 12.
---------------------------------------------------------------------------

    The Emerging Markets Bond Fund intends to initially invest a
substantial portion of its assets in one underlying fund, the iShares
J.P. Morgan USD Emerging Markets Bond ETF (the ``Underlying Emerging
Markets Bond Fund''). This Fund will attempt to mitigate the interest
rate risk primarily through the use of U.S. Treasury futures contracts
and interest rate swaps. It may also take short positions in other
interest rate futures contracts, including but not limited to,
Eurodollar and Federal Funds futures.
    BFA will utilize a model-based proprietary investment process to
assemble an investment portfolio composed of (i) long positions in the
Underlying Emerging Markets Bond Fund, (ii) long positions in U.S.
dollar-denominated emerging market bonds, (iii) long positions in U.S.
Treasury securities, and (iv) short positions in U.S. Treasury futures,
other interest rate futures contracts, and interest rate swaps. The
short positions are expected to have, in the aggregate, approximately
equivalent duration to the underlying securities in the Underlying
Emerging Markets Bond Fund and to the emerging market bonds. By taking
these short positions, BFA will seek to mitigate the potential impact
of rising interest rates on the performance of the Underlying Emerging
Markets Bond Fund and the emerging market bonds (conversely also
limiting the potential positive impact of falling interest rates).
Further, the short positions are not intended to mitigate other factors
influencing the price of emerging market bonds, such as credit risk,
which may have a greater impact than rising or falling interest rates.
Relative to a long-only investment in the same emerging market bonds,
the Emerging Markets Bond Fund's investment strategy is designed to
outperform in a rising interest rate environment and underperform in a
falling interest rate environment.
4. Other Investments of the Funds
    While each of the Funds, under normal circumstances,\17\ will
invest at least 80% of its net assets in investments as described
above, the Funds may also invest in other certain investments as
described below.
---------------------------------------------------------------------------

    \17\ See supra note 11.
---------------------------------------------------------------------------

    The Funds may invest in repurchase and reverse repurchase
agreements. The Funds may invest in money market instruments. The
instruments in which the Funds may invest include: (i) Shares of money
market funds (including those advised by BFA or otherwise affiliated
with BFA); (ii) obligations issued or guaranteed by the U.S.
government, its agencies or instrumentalities (including government-
sponsored enterprises); (iii) negotiable certificates of deposit
(``CDs''), bankers' acceptances, fixed-time deposits and other
obligations of U.S. and non-U.S. banks (including non-U.S. branches)
and similar institutions; (iv) commercial paper rated, at the date of
purchase, ``Prime-1'' by Moody's[supreg] Investors Service, Inc., ``F-
1'' by Fitch Inc., or ``A-1'' by Standard & Poor's[supreg]
(``S&P[supreg]''), or if unrated, of comparable quality as determined
by BFA; (v) non-convertible corporate debt securities (e.g., bonds and
debentures) with remaining maturities at the date of purchase of not
more than 397 days and that satisfy the rating requirements set forth
in Rule 2a-7 under the 1940 Act; and (vi) short-term U.S. dollar-
denominated obligations of non-U.S. banks (including U.S. branches)
that, in the opinion of BFA, are of comparable quality to obligations
of U.S. banks which may be purchased by the Funds. Any of these
instruments may be purchased on a current or forward-settled basis.
    Each of the Funds also may invest in options that are traded on a
U.S. or non-U.S. exchange and that reference U.S. Treasury securities.
To the extent that

the High Yield Bond Fund, the Credit Bond Fund, or the Emerging Markets
Bond Fund invests in options, not more than 10% of such investment
would be in options whose principal trading market is not a member of
ISG or is a market with which the Exchange does not have a
comprehensive surveillance sharing agreement.
    Each of the Funds may invest in debt securities of non-U.S. issuers
and may invest in privately-issued debt securities.

III. Description of Comment Letter

    As noted above, the Commission received one comment letter from an
anonymous commenter.\18\ The commenter supported the proposal and
stated that the Funds would be a useful tool for individual and small-
institutional investors because it is difficult for many investors to
otherwise achieve what the Funds claim they will deliver. The commenter
also stated that the isolation of credit spread exposure in a liquid
and relatively simple product should be attractive to many types of
investors.
---------------------------------------------------------------------------

    \18\ See supra note 4.
---------------------------------------------------------------------------

IV. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \19\
and the rules and regulations thereunder applicable to a national
securities exchange.\20\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\21\ which
requires, among other things, that the Exchange's rules be designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. The Commission also finds that the proposal to list and trade
the Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii)
of the Act,\22\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f.
    \20\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \21\ 15 U.S.C. 78f(b)(5).
    \22\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    Quotation and last-sale information for the Shares and the shares
of the Underlying High Yield Corporate Bond Fund, Underlying Credit
Bond Fund, the Underlying Emerging Markets Bond Fund, and any other
exchange-traded funds held by any of the Funds will be available via
the Consolidated Tape Association (``CTA'') high-speed line. In
addition, the Indicative Optimized Portfolio Indicative Value
(``IOPV''), which is the Portfolio Indicative Value as defined in NYSE
Arca Equities Rule 8.600(c)(3), will be widely disseminated at least
every fifteen seconds during the NYSE Arca Core Trading Session by one
or more major market data vendors.\23\ On a daily basis, each of the
Funds will disclose for each portfolio security or other financial
instrument the following information on the Funds' Web site: Ticker
symbol, if any; CUSIP number or other identifier, if any; a description
of the holding (including the type of holding, such as the type of
swap); the identity of the security or other asset or instrument
underlying the holding,\24\ if any; for options, the option strike
price; quantity held (as measured by, for example, par value, notional
value or number of shares, contracts or units); maturity date, if any;
coupon rate, if any; market value of the holding; and the percentage
weighting of the holding in the portfolio.\25\ The Web site information
will be publicly available at no charge.
---------------------------------------------------------------------------

    \23\ The Exchange understands that several major market data
vendors display and/or make widely available IOPVs taken from CTA or
other data feeds.
    \24\ Derivatives that reference or allow delivery of more than
one asset, such as U.S. Treasury futures, will name the underlying
asset generically.
    \25\ See supra note 5.
---------------------------------------------------------------------------

    In addition, for each of the Funds, a basket composition file,
which includes the security names and share quantities required to be
delivered in exchange for that Fund's Shares, together with estimates
and actual cash components, will be publicly disseminated daily prior
to the opening of the New York Stock Exchange (``NYSE'') via National
Securities Clearing Corporation. The NAV of each of the Funds will be
determined as of the close of trading (normally 4 p.m., Eastern Time)
on each day the NYSE is open for business.
    Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. Intra-day, closing and settlement prices of
exchange-traded portfolio assets, including investment companies, money
market instruments, futures and options will be available from the
securities exchanges and futures exchanges trading such securities and
futures contracts, respectively; automated quotation systems; published
or other public sources; or on-line information services, such as
Bloomberg or Reuters or any such future service provider. The Funds'
Web site will include a form of the prospectus for the High Yield Bond
Fund, the Credit Bond Fund, and the Emerging Markets Bond Fund and
additional data relating to NAV and other applicable quantitative
information for the Funds.
    The Exchange will obtain a representation from the issuer of the
Shares that, for each Fund, the NAV per Share will be calculated daily
and the NAV and the Disclosed Portfolio will be made available to all
market participants at the same time. Trading in Shares will be halted
if the circuit breaker parameters in NYSE Arca Equities Rule 7.12 have
been reached or because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable,\26\
and trading in the Shares will be subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth additional circumstances under which
trading in the Shares may be halted. The Exchange states that it has a
general policy prohibiting the distribution of material, non-public
information by its employees. Consistent with NYSE Arca Equities Rule
8.600(d)(2)(B)(ii), the Commission notes that the Reporting Authority
must implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the actual components of the Funds' portfolios. In addition,
the Exchange states that the Adviser is affiliated with multiple
broker-dealers and that the Adviser has implemented a fire wall with
respect to its broker-dealer affiliates regarding access to information
concerning the composition and changes to the Funds' portfolios.\27\
The Exchange represents

that trading in the Shares will be subject to the existing trading
surveillances, administered by the Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange, which are designed to
detect violations of Exchange rules and applicable federal securities
laws.\28\ The Exchange further represents that these procedures are
adequate to properly monitor Exchange-trading of the Shares in all
trading sessions and to deter and detect violations of Exchange rules
and federal securities laws applicable to trading on the Exchange.
Moreover, prior to the commencement of trading, the Exchange states
that it will inform its Equity Trading Permit Holders in an Information
Bulletin of the special characteristics and risks associated with
trading the Shares.
---------------------------------------------------------------------------

    \26\ These reasons may include: (1) The extent to which trading
is not occurring in the securities or the financial instruments
composing the Disclosed Portfolio of the Funds; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance
of a fair and orderly market are present. With respect to trading
halts, the Exchange may consider all relevant factors in exercising
its discretion to halt or suspend trading in the Shares.
    \27\ See supra note 9. The Exchange states that an investment
adviser to an open-end fund is required to be registered under the
Investment Advisers Act of 1940 (``Advisers Act''). As a result, the
Adviser and its related personnel are subject to the provisions of
Rule 204A-1 under the Advisers Act relating to codes of ethics. This
Rule requires investment advisers to adopt a code of ethics that
reflects the fiduciary nature of the relationship to clients, as
well as compliance with other applicable securities laws.
Accordingly, procedures designed to prevent the communication and
misuse of non-public information by an investment adviser must be
consistent with Rule 204A-1 under the Advisers Act. In addition,
Rule 206(4)-7 under the Advisers Act makes it unlawful for an
investment adviser to provide investment advice to clients unless
such investment adviser has (i) adopted and implemented written
policies and procedures reasonably designed to prevent violation, by
the investment adviser and its supervised persons, of the Advisers
Act and the Commission rules adopted thereunder; (ii) implemented,
at a minimum, an annual review regarding the adequacy of the
policies and procedures established pursuant to subparagraph (i)
above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
    \28\ The Exchange states that FINRA surveils trading on the
Exchange pursuant to a regulatory services agreement and that the
Exchange is responsible for FINRA's performance under this
regulatory services agreement.
---------------------------------------------------------------------------

    The Commission notes that the Funds and the Shares must comply with
the initial and continued listing criteria in NYSE Arca Equities Rule
8.600 for the Shares to be listed and traded on the Exchange. The
Exchange represents that it deems the Shares to be equity securities,
thus rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. In support of this
proposal, the Exchange has also made the following representations:
    (1) The Shares will be subject to NYSE Arca Equities Rule 8.600,
which sets forth the initial and continued listing criteria applicable
to Managed Fund Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares, exchange-traded equity securities,
futures and options contracts with other markets and other entities
that are members of ISG, and FINRA, on behalf of the Exchange, may
obtain trading information regarding trading in the Shares, exchange-
traded equity securities, futures and options contracts from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares, exchange-trade equity
securities, futures and options contracts from ISG member markets or
markets with which the Exchange has in place a comprehensive
surveillance sharing agreement.
    (4) With respect to its exchange-traded equity securities
investments, the Funds will invest only in equity securities that trade
in markets that are members of the ISG or are parties to a
comprehensive surveillance sharing agreement with the Exchange. To the
extent that any of the Funds invest in options, not more than 10% of
such investment would be in options whose principal trading market is
not a member of ISG or is a market with which the Exchange does not
have a comprehensive surveillance sharing agreement. The Funds will
invest only in futures contracts that are traded on an exchange that is
a member of the ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
    (5) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders in an Information Bulletin of the
special characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss the following: (a)
The procedures for purchases and redemptions of Shares in creation
units (and that Shares are not individually redeemable); (b) NYSE Arca
Equities Rule 9.2(a), which imposes a duty of due diligence on its
Equity Trading Permit Holders to learn the essential facts relating to
every customer prior to trading the Shares; (c) the risks involved in
trading the Shares during the Opening and Late Trading Sessions when an
updated Portfolio Indicative Value will not be calculated or publicly
disseminated; (d) how information regarding the Portfolio Indicative
Value and Disclosed Portfolio is disseminated; (e) the requirement that
Equity Trading Permit Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (f) trading information.
    (6) For initial and continued listing, the Funds will be in
compliance with Rule 10A-3 under the Act,\29\ as provided by NYSE Arca
Equities Rule 5.3.
---------------------------------------------------------------------------

    \29\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (7) Each of the Funds may hold up to an aggregate amount of 15% of
its net assets in illiquid assets (calculated at the time of
investment).
    (8) A minimum of 100,000 Shares for each of the Funds will be
outstanding at the commencement of trading on the Exchange.
    (9) With respect to each Fund's investments in fixed-income
securities, no fixed-income security (excluding Treasury Securities,
government-sponsored-entity securities, and other exempted securities)
will represent more than 30% of the weight of that Fund's total assets,
and the five highest weighted fixed income securities held by such Fund
(excluding Treasury Securities, government-sponsored entity and other
exempted securities) will not in the aggregate account for more than
65% of the weight of that Fund's total assets.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in Amendments No.
1 and No. 2.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendments No. 1 and No. 2, is consistent
with Section 6(b)(5) of the Act \30\ and the rules and regulations
thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

V. Solicitation of Comments on Amendments No. 1 and No. 2

    Interested persons are invited to submit written data, views, and
arguments concerning whether Amendments No. 1 and No. 2 are consistent
with the Act. Comments may be submitted by any of the following
methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2014-114 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-2014-114. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
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. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2014-114 and should
be submitted on or before February 12, 2015.

V. Accelerated Approval of Proposed Rule Change as Modified by
Amendment Nos. 1 and 2

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendments No. 1 and No. 2, prior to the
thirtieth day after the date of publication of notice of the amendments
in the Federal Register. Amendment No. 1 supplements the proposed rule
change by, among other things, supplementing the information that will
be provided regarding the Disclosed Portfolios of the Funds. The
Commission believes that dissemination of this additional information
should aid in the pricing of the Shares. Amendment No. 2 modifies the
proposed rule change by specifying (1) the minimum par amounts
outstanding for the corporate bonds that generally will be held by the
Funds; and (2) portfolio concentration limits for fixed income
securities held by the Funds. This assisted the Commission in
evaluating the liquidity of certain types of potential holdings and the
susceptibility of the Shares to price manipulation. Accordingly, the
Commission finds good cause, pursuant to Section 19(b)(2) of the
Act,\31\ to approve the proposed rule change, as modified by Amendment
Nos. 1 and 2, on an accelerated basis.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\32\ that the proposed rule change as modified by Amendments No. 1
and No. 2 (SR-NYSEArca-2014-114) be, and it hereby is, approved on an
accelerated basis.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
---------------------------------------------------------------------------

    \33\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-00964 Filed 1-21-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: December 21, 2005 (Volume 70, Number 244)]
[Notices]
[Page 75850]
[DOCID:fr21de05-100]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available from: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.

Extension:
    Rule 12a-5; SEC File No. 270-85; OMB Control No. 3235-0079.

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit the
existing collection of information to the Office of Management and
Budget for extension and approval.

Rule 12a-5--Temporary Exemption of Substituted or Additional Securities

    Section 12(a) of the Securities Exchange Act of 1934 (the ``Act'')
generally makes it unlawful for any security to be traded on a national
securities exchange unless such security is registered on the exchange
in accordance with the provisions of the Act and the rules and
regulations thereunder.
    Rule 12a-5 (the ``Rule'') under the Act and Form 26 (the ``Form'')
were adopted by the Commission in 1936 and 1955, respectively, pursuant
to Sections 3(a)(12), 10(b), and 23(a) of the Act. Subject to certain
conditions, Rule 12a-5 affords a temporary exemption (generally for up
to 120 days) from the registration requirements of Section 12(a) of the
Act for a new security when the holders of a security admitted to
trading on a national securities exchange obtain the right (by
operation of law or otherwise) to acquire all or any part of a class of
another or substitute security of the same or another issuer, or an
additional amount of the original security. The purpose of the
exemption is to avoid an interruption of exchange trading to afford
time for the issuer of the new security to list and register it, or for
the exchange to apply for unlisted trading privileges.
    Under paragraph (d) of Rule 12a-5, after an exchange has taken
action to admit any security to trading pursuant to the provisions of
the Rule, the exchange is required to file with the Commission a
notification on Form 26. Form 26 provides the Commission with certain
information regarding a security admitted to trading on an exchange
pursuant to Rule 12a-5, including: (1) The name of the exchange, (2)
the name of the issuer, (3) a description of the security, (4) the
date(s) on which the security was or will be admitted to when-issued
and/or regular trading, and (5) a brief description of the transaction
pursuant to which the security was or will be issued.
    The Commission generally oversees the national securities
exchanges. This mission requires that, under Section 12(a) of the Act
specifically, the Commission receive notification of any securities
that are permitted to trade on an exchange pursuant to the temporary
exemption under Rule 12a-5. Without the Rule and the Form, the
Commission would be unable fully to implement these statutory
responsibilities.
    There are currently eight national securities exchanges subject to
Rule 12a-5. While the Commission staff estimates that there could be as
many as 40 Forms 26 filed annually, the reporting burdens are not
typically spread evenly among the exchanges.\1\ For purposes of this
analysis of burden, however, the staff has assumed that each exchange
files an equal number (five) of Form 26 notifications. Each
notification requires approximately 20 minutes to complete. Each
respondent's compliance burden, then, in a given year would be
approximately 100 minutes (20 minutes/report x 5 reports = 100
minutes), which translates to just over 13 hours in the aggregate for
all respondents (8 respondents x 100 minutes/respondent = 800 minutes,
or 13\1/3\ hours).
---------------------------------------------------------------------------

    \1\ In fact, some exchanges do not file any notifications on
Form 26 with the Commission in a given year.
---------------------------------------------------------------------------

    Based on the most recent available information, the Commission
staff estimates that the cost to respondents of completing a
notification on Form 26 is, on average, $14.35 per response. The staff
estimates that the total annual related reporting cost per respondent
is $71.75 (5 responses/respondent x $14.35 cost/response), for a total
annual related cost to all respondents of $574 ($71.75 cost/respondent
x 8 respondents).
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the Commission's estimate
of the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
    Direct your written comments to R. Corey Booth, Director/Chief
Information Officer, Office of Information Technology, Securities and
Exchange Commission, Station Place, 100 F Street, NE., Washington, DC
20549.

    Dated: December 14, 2005.
Jonathan G. Katz,
Secretary.
 [FR Doc. E5-7591 Filed 12-20-05; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: December 5, 2007 (Volume 72, Number 233)]
[Notices]
[Page 68610-68613]
[DOCID:fr05de07-78]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56855; File No. SR-CBOE-2006-90]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Approving Proposed Rule Change as Modified by
Amendment No. 1 Thereto to List and Trade Delayed Start Option Series

November 28, 2007.

I. Introduction

    On November 7, 2006, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or ``Exchange''), filed with the Securities and
Exchange Commission (``Commission'') pursuant to section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to list and trade Delayed Start
Option SeriesTM (``DSOs'') on any security index that has
been approved for trading on the Exchange. On September 5, 2007, the
Exchange filed Amendment No. 1 to the proposed rule change. The
proposed rule change, as amended, was published for comment in the
Federal Register on September 17, 2007.\3\ The Commission received no
comments on the proposal. This order approves the proposed rule change,
as amended, and designates

DSOs as ``standardized options'' pursuant to Rule 9b-1 under the
Act.\4\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56378 (September 10,
2007), 72 FR 52944 (September 17, 2007) (``Notice'').
    \4\ 17 CFR 240.9b-1.
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange is proposing to introduce for trading a new type of
security index option product called DSOs. DSOs would possess all of
the characteristics of existing index options with one variation: at
the commencement of trading of a particular DSO, and until a
predetermined date (the ``strike setting date''), there would be no set
exercise price. Instead, prior to the opening of a particular DSO
series, a pre-established methodology would be applied to determine the
strike price of the DSO, and the strike price would then be fixed on
the strike setting date according to that formula. The Exchange notes
that DSOs, which address the dependence of an index option's vega
(volatility exposure) on the relationship between the option's strike
price and the underlying index level, are designed as a tool to allow
customers to manage risk associated with the volatility of a particular
index.\5\
---------------------------------------------------------------------------

    \5\ See Notice, supra note 3, at 52945.
---------------------------------------------------------------------------

    Product Description. DSOs would be identical to other option series
that currently trade except that the exercise price for a DSO would be
fixed based on the closing value of the underlying index on a
predetermined strike setting date prior to expiration. The particular
strike setting date would be specified at the time the DSO is initially
opened for trading and would be no sooner than one month, and no later
than twelve months, after the series' opening. The particular
expiration date would also be specified at the time the DSO is
initially opened for trading and would be no later than what is
currently permitted under CBOE rules.\6\
---------------------------------------------------------------------------

    \6\ Presently, the longest term for an option series expiration
is thirty-nine months from the listing date. See CBOE Rule 5.8(a)
and proposed CBOE Rule 24.9(d)(2).
---------------------------------------------------------------------------

    Initially, CBOE proposes to establish the strike setting dates for
all series of DSOs at three months prior to the option's expiration
date. However, as proposed, CBOE would have the ability to issue series
of DSOs with more or less time than three months between the strike
setting date and expiration date. Accordingly, the particular strike
setting date and the expiration date, and thus the corresponding length
of the interval between the strike setting date and expiration, would
be set prior to issuance of each particular series. No changes to any
terms of an existing DSO series could be made once a series commences
trading.
    Establishment of Strike Price. On the strike setting date, the DSO
would be assigned a strike price, which would be at-the-money, in-the-
money, or out-of-the-money, according to the pre-established terms of
the particular DSO series. A DSO's exercise price would be fixed based
on the closing value of the underlying index on the strike setting
date, rounded to the nearest one-eighth (.125) value, or such smaller
value as the Exchange may designate at the time the DSO is listed,
provided that the value cannot be smaller than 0.01.\7\ For example,
using a one-eighth interval, if the S&P 500[supreg] Index (``SPX'')
closes at 1004.12 on the strike setting date, an at-the-money DSO would
be assigned a strike price of 1004.125. After the strike setting date,
the DSO would trade the same as other options until expiration.
---------------------------------------------------------------------------

    \7\ Because of system limitations, the Exchange currently plans
to round DSO exercise prices to the nearest .125. However, should
the system functionality permit it in the future, the Exchange wants
the flexibility to be able to determine to round DSO exercise prices
to a smaller value, provided that the particular increment would be
designated at the time the DSO is listed and that it would not be
any smaller than 0.01.
---------------------------------------------------------------------------

    An in- or out-of-the money DSO would trade in the exact same manner
as an at-the-money DSO, except that the strike price would be set to a
predetermined level either in- or out-of-the-money on the strike
setting date (e.g., 5% in-the-money, or 5% out-of-the-money). For
example, if the Exchange determines to list a 5% out-of-the-money DSO
on the SPX, and the SPX closes at 1000 on the strike setting date, the
strike price would be established at 1050. The amount by which the
strike price of an in- or out-of-the money DSO series would be set in-
or out-of-the-money on the strike setting date would be announced prior
to the inception of trading of that particular series and could not
change thereafter.
    Exercise Style. All DSOs would feature European-style exercise
until the strike setting date (i.e., the option contract could not be
exercised during this period). After the strike setting date, the DSO
would be subject to the exercise style (i.e., American or European) of
the particular index option class. The period during which exercise is
restricted would therefore depend upon the particular DSO's strike
setting date, expiration date, and expiration style. For instance, in
the case of a DSO that is subject to American-style exercise, is issued
with a nine-month expiration, and has a strike setting date fixed at
three-months prior to expiration, then the period of non-exercise would
be six months.\8\
---------------------------------------------------------------------------

    \8\ Similarly, a DSO that is subject to European-style exercise
with a nine-month expiration and a strike setting date fixed at
three months prior to expiration would have a nine-month period of
non-exercisability. The strike setting interval would be publicly
announced prior to the inception of trading of a particular DSO
series. No changes to any terms of existing DSO series could be made
once the series trades (with the exception of the establishment of
the exercise price).
---------------------------------------------------------------------------

    Trading Increments, Margin, and Trading Symbols. The Exchange
proposes to list DSO puts to correspond with each DSO call in a
particular index option class. As with all other options, the premium
quotation would be stated in decimals, and one point would equal $100.
The minimum tick for options trading below $3.00 would be 0.05 ($5.00)
and for all other series, 0.10 ($10.00).
    DSOs in any particular index option class would be treated the same
as any other options on the same index for the purpose of determining
customer margin.\9\ Therefore, a buyer of DSOs would have to pay the
premium in full, while a seller would have to put up the entire
premium, plus 15% of the underlying value for a broad-based index
option, or the premium plus 20% for a narrow-based or micro narrow-
based index option.
---------------------------------------------------------------------------

    \9\ See CBOE Rule 12.3. However, the Exchange does not initially
plan to permit spread margining between DSO and non-DSO options for
the time period between the initial listing of a DSO and its strike
setting date. The Exchange intends to consider what spread margin
would be appropriate and address the subject under a separate rule
filing.
---------------------------------------------------------------------------

    Prior to the strike setting date, margin on any DSO would be based
on the then-current level of the underlying index. For example, a DSO
whose strike price would be set at-the-money would be margined as an
at-the-money option in the same index option class prior to the strike
setting date, because prior to the strike setting date the DSO's price
would be directly related to the price of an at-the-money option. Prior
to the strike setting date, in- and out-of-the-money DSOs would be
margined the same as any other in- and out-of-the-money options in the
same index option class.
    Prior to the strike setting date, DSOs would be distinguished from
existing options by a unique root symbol and a special strike price
code designating an at-the-money, in-the-money, or out-of-the-money
option. The Exchange intends to trade the DSO series under separate
symbols from other option series on the same index option class. The
exact exercise price, and a unique DSO strike price code, would be
fixed on the strike setting date pursuant to the method established at
the time the

option series was originally opened for trading. The strike price code
would specify the exact strike price of the particular DSO option
series (rounded to the nearest eighth or smaller increment, if
applicable).
    Position and Exercise Limits. Positions in any DSO would be subject
to the same rules governing position and exercise limits upon other
options in the same index option class and, for purposes of determining
position limits, DSO positions would be aggregated with positions in
other series of the same option class.\10\ Similarly, members and
member organizations trading in DSOs would continue to be subject to
the same reporting requirements and margin and clearing firm
requirements as provided under Interpretations and Policies .03 and .04
to CBOE Rule 24.4.
---------------------------------------------------------------------------

    \10\ See CBOE Rules 4.11, 4.12, 24.4, 24.4A, and 24.4B. In
addition, the Exchange is proposing to clarify in Rule 24.4B
(Position Limits for Options on Micro Narrow-Based Indexes as
Defined Under Rule 24.2(d)) that position in Short Term Option
Series and Quarterly Options, together with DSO positions, shall be
aggregated with positions in options contracts in the same class.
---------------------------------------------------------------------------

    Pricing of a DSO. Similar to other index options, the pricing of an
at-the-money DSO, for example, would reflect the price of the
underlying index, implied volatility, interest rates, time to
expiration, and strike price. Therefore, the price for a DSO would
generally approximate the concurrent price for a similar option, with
one significant deviation: whereas other options are priced based on
current levels of implied volatility, a DSO is priced using an
expectation of implied volatility levels at the time the strike price
is set, which is generally derived from the current level of implied
volatility. The dependence of a particular DSO's price on expected
implied volatility is what the Exchange believes would make DSOs useful
to market participants that are interested in volatility trading.
    Customer Suitability. Although the Exchange believes that DSOs may
be suitable for all types of investors, the Exchange has proposed to
limit the trading of DSOs to investors with prior options trading
experience.\11\ Also, prior to the commencement of trading of DSOs, the
Exchange would make available on its Web site all information necessary
to inform members and customers of the addition of new DSO series to a
particular option class.
---------------------------------------------------------------------------

    \11\ See Notice, supra note 3, at 52947. See also Proposed CBOE
Rule 9.9, Interpretations and Policies .01.
---------------------------------------------------------------------------

    Surveillance. The Exchange represents that it has in place
appropriate surveillance procedures to monitor trading activity in DSOs
and intends to monitor trading activity in DSOs like any other option
series listed in that same index option class.\12\
---------------------------------------------------------------------------

    \12\ See Notice, supra note 3, at 52948.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\13\ In particular, the Commission finds that the proposed
rule change is consistent with section 6(b)(5) of the Act,\14\ which,
among other things, requires that the rules of a national securities
exchange be designed to promote just and equitable principles of trade,
to foster cooperation and coordination with persons engaged in
regulating 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.
---------------------------------------------------------------------------

    \13\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that options similar to CBOE's proposed DSOs
currently trade in the over-the-counter market. The introduction of
CBOE's proposed DSOs will provide investors with an exchange-traded
product to manage the risk associated with changes in volatility of a
particular security index, thereby providing additional investment
options to investors in the context of a transparent exchange-traded
market for these products.
    In addition, DSOs will be subject to CBOE's rules applicable to
other standardized options. For example, positions in a DSO will be
subject to CBOE's rules governing position and exercise limits and, for
the purposes of determining position limits, DSO positions will be
aggregated with positions in other series of the same option class.
Similarly, CBOE members and member organizations trading in DSOs will
be subject to the reporting requirements and clearing firm requirements
provided under CBOE rules. Further, DSOs in any particular index option
class will be treated the same as any other options on the same index
for the purpose of determining customer margin.
    The Commission notes that the Exchange has represented that it has
surveillance procedures in place that are adequate to monitor trading
in DSOs. In particular, the Exchange will monitor trading activity in
DSOs as it does for other option series listed in the same index option
class. Further, the Exchange will limit trading of DSOs to investors
with prior options trading experience, and will provide information
about DSOs on its Web site, including information that describes the
terms and operation of DSOs.
    Accordingly, the Commission finds that the proposed rule change is
consistent with the requirements of the Act and the rules and
regulations thereunder, and should promote just and equitable
principles of trade while protecting investors and the public interest.

IV. Designation of DSOs as Standardized Options Pursuant to Rule 19b-1

    Rule 9b-1 under the Act establishes a disclosure framework for
standardized options that are traded on a national securities exchange
and cleared through a registered clearing agency.\15\ Under this
framework, the exchange on which a standardized option is listed and
traded must prepare an Options Disclosure Document (``ODD'') that,
among other things, identifies the issuer and describes the uses,
mechanics, and risks of options trading, in language that can be easily
understood by the general investing public. The ODD is treated as a
substitute for the traditional prospectus. A broker-dealer must provide
a copy of the ODD to each customer at or before approving the
customer's account for trading any standardized option.\16\ Any
amendment to the ODD must be distributed to each customer whose account
is approved for trading the options class for which the ODD
relates.\17\
---------------------------------------------------------------------------

    \15\ ``Standardized options'' are defined in Rule 9b-1(a)(4) as
``options contracts trading on a national securities exchange, an
automated quotation system of a registered securities association,
or a foreign securities exchange which relate to options classes the
terms of which are limited to specific expiration dates and exercise
prices, or such other securities as the Commission may, by order,
designate.'' 17 CFR 240.9b-1(a)(4).
    \16\ See 17 CFR 240.9b-1(d)(1).
    \17\ See 17 CFR 240.9b-1(d)(2).
---------------------------------------------------------------------------

    Pursuant to Rule 9b-1 under the Act, use of the ODD is limited to
``standardized options'' for which there is an effective registration
statement on Form S-20 under the Securities Act of 1933 (``Securities
Act'') or that are otherwise exempt from registration.\18\

Pursuant to Rule 9b-1(a)(4), the Commission may, by order, designate as
``standardized options'' securities that do not otherwise meet the
definition of ``standardized options'' but which ``the Commission
believes should be included within the [options] disclosure
framework.'' \19\ The Commission has used this authority in the past,
for example, in connection with the listing and trading of Index
Participations,\20\ FLEX options,\21\ credit default options,\22\ and
credit default basket options.\23\ CBOE has requested that the
Commission designate DSOs as standardized options so that the ODD may
be used for DSOs.\24\
---------------------------------------------------------------------------

    \18\ See 17 CFR 240.9b-1(b)(1) and (c)(8). See also 17 CFR
230.238 (``Rule 238''). Rule 238 under the Securities Act provides
an exemption from the Securities Act for any standardized option, as
defined by Rule 9b-1(a)(4) under the Act, with limited exceptions.
Rule 238 does not exempt standardized options from the anti-fraud
provisions of Section 17 of the Securities Act, 15 U.S.C. 77q. Also,
offers and sales of standardized options by or on behalf of the
issuer of the underlying security or securities, an affiliate of the
issuer, or an underwriter, will constitute an offer or sale of the
underlying security or securities as defined in Section 2(a)(3) of
the Securities Act, 15 U.S.C. 77b(a)(3). See also Securities Act
Release No. 8171 (December 23, 2002), 68 FR 188 (January 2, 2003)
(Exemption for Standardized Options From Provisions of the
Securities Act of 1933 and From Registration Requirements of the
Exchange Act of 1934).
    \19\ See Securities Exchange Act Release No. 19055 (September
16, 1982), 47 FR 41950, 41954 (September 23, 1982).
    \20\ See Securities Exchange Act Release No. 26709 (April 11,
1989), 54 FR 15280 (April 17, 1989) (SR-Phlx-88-07; SR-Amex-88-10;
SR-CBOE-88-09).
    \21\ See Securities Exchange Act Nos. 31910 (February 23, 1993),
58 FR 12056 (March 2, 1993) (SR-CBOE-92-17; SR-OCC-92-33; ODD 93-1)
(order designating FLEX index options as standardized options under
Rule 9b-1); and 36841 (February 14, 1996), 61 FR 6666 (February 21,
1996) (SR-CBOE-95-43 and SR-PSE-95-24) and 37336 (June 19, 1996), 61
FR 33558 (June 27, 1996) (SR-Amex-95-57) (orders approving the
listing and trading of FLEX equity options, and designating them as
standardized options pursuant to Rule 9b-1 under the Act).
    \22\ See Securities Exchange Act Release No. 55871 (June 6,
2007), 72 FR 32372 (June 12, 2007) (SR-CBOE-2006-84).
    \23\ See Securities Exchange Act Release No. 56275 (August 17,
2007), 72 FR 47097 (August 22, 2007) (SR-CBOE-2007-26).
    \24\ See Notice, supra note 3, at 52947.
---------------------------------------------------------------------------

    The Commission hereby designates DSOs, as separately defined in the
Options Clearing Corporation's (``OCC'') proposal,\25\ as standardized
options for purposes of Rule 9b-1 under the Act. DSOs do not meet the
definition of standardized options because they do not have a specific
exercise price. Whereas the exercise price of a conventional
standardized option is determined when the option series is first
listed for trading, the exercise price for a DSO would not be
determined until the strike setting date. Instead, prior to the listing
of the particular DSO series, the Exchange will specify a formula to
determine the strike price of the DSO on the pre-determined strike
setting date according to the terms of the formula.\26\ No changes to
any terms of existing DSO series could be made once the series begins
trading.
---------------------------------------------------------------------------

    \25\ The OCC has filed with the Commission a proposed rule
change to enable it to clear and settle DSOs proposed to be listed
by CBOE (the ``OCC Proposal''). See Securities Exchange Act Release
No. 56856 (November 28, 2007) (SR-OCC-2007-13) (order noticing and
granting accelerated approval). The OCC Proposal defines the term
``delayed start option'' to mean ``an option that at the
commencement of trading does not have an exercise price but instead
has an exercise price setting formula pursuant to which the exercise
price will be fixed on the exercise price setting date for the
series of delayed start option.'' This definition of DSOs is being
added to Article 1, Section 1 of the OCC's By-Laws.
    \26\ Prior to the opening of the particular DSO series, the
Exchange will announce the strike setting date as well as the
expiration date of the DSO.
---------------------------------------------------------------------------

    Aside from the determination of the exercise price, DSOs resemble
standardized options in other significant respects. DSOs have an
underlying security index and a specific expiration date. Like other
standardized options, they also have standardized terms pertaining to
the rights and obligations of holders and writers. The fact that DSOs
lack a specified exercise price at the commencement of trading does not
detract from their character as options. Compared with FLEX options,
which the Commission has also declared to be ``standardized options,''
\27\ the terms of DSOs would be even more standardized in that a strike
price formula, settlement, expiration date, and exercise style would be
fixed by the Exchange for each DSO series. In addition, similar to
DSOs, credit default options and credit default basket options, which
were recently designated by the Commission as ``standardized options,''
also have many characteristics of standardized options, except for
exercise price.\28\
---------------------------------------------------------------------------

    \27\ See supra note 21 (citing the applicable orders regarding
FLEX equity and index options).
    \28\ See supra notes 22 and 23 (citing the approval orders for
credit default options and credit default basket options,
respectively).
---------------------------------------------------------------------------

    The Commission also believes that the fact that the OCC, the
clearing agency for standardized options, is willing to serve as issuer
of DSOs supports the view that adding DSOs to the standardized option
disclosure framework is reasonable.\29\
---------------------------------------------------------------------------

    \29\ The Commission notes that CBOE presently intends to offer
DSOs in early 2008, and has represented that they will not introduce
DSOs before the supplement to the ODD has been submitted to the
Commission pursuant to Rule 9b-1 under the Act. Telephone
conversation between Richard Holley III, Senior Special Counsel,
Division of Trading and Markets, Commission, and Jennifer M. Lamie,
Assistant General Counsel, CBOE, on November 16, 2007.
---------------------------------------------------------------------------

    Therefore, the Commission herein designates DSOs, such as those
proposed by CBOE, as standardized options for purposes of Rule 9b-1
under the Act.\30\
---------------------------------------------------------------------------

    \30\ 17 CFR 240.9b-1.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\31\ that the proposed rule change (SR-CBOE-2006-90) as modified by
Amendment No. 1 thereto, be, and hereby is, approved.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    It is further ordered, pursuant to Rule 9b-1(a)(4) under the
Act,\32\ that DSOs, as defined in proposed rule change SR-OCC-2007-13,
are hereby designated as standardized options.
---------------------------------------------------------------------------

    \32\ 17 CFR 240.9b-1(a)(4).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
---------------------------------------------------------------------------

    \33\ 17 CFR 200.30-3(a)(12) and 17 CFR 200.30-3(a)(51).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23533 Filed 12-4-07; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 212 (Friday, November 3, 2023)]
[Notices]
[Page 75585]
[FR Doc No: 2023-24258]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER24-201-000]

Karbone Energy LLC; Supplemental Notice That Initial Market-Based
Rate Filing Includes Request for Blanket Section 204 Authorization

    This is a supplemental notice in the above-referenced proceeding of
Karbone Energy LLC's application for market-based rate authority, with
an accompanying rate tariff, noting that such application includes a
request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is November 16, 2023.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically may mail similar pleadings to
the Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Hand delivered submissions in docketed
proceedings should be delivered to Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at [email protected] or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes. For
public inquiries and assistance with making filings such as
interventions, comments, or requests for rehearing, the public is
encouraged to contact OPP at<PHONE_NUMBER> or [email protected].

    Dated: October 27, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-24258 Filed 11-2-23; 8:45 am]
BILLING CODE 6717-01-P