[Federal Register Volume 85, Number 172 (Thursday, September 3, 2020)]
[Notices]
[Pages 55054-55058]
[FR Doc No: 2020-19451]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89703; File No. SR-FINRA-2020-025]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Security Futures Risk Disclosure
Statement

August 28, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 14, 2020, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
and II below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to amend: (1) Section 8.2 (Position Limits and
Large Trader Reporting) of the Security Futures Risk Disclosure
Statement (``2018 Statement'' or ``Statement'') to reflect the higher
position limits for security futures contracts and changes to the large
trader reporting timeframe adopted by the Commodity Futures Trading
Commission (``CFTC''); \4\ (2) Section 2.7 (Trading Halts) of the 2018
Statement to reflect the updated market-wide circuit breaker benchmark
and thresholds approved by the SEC; \5\ and (3) the introductory
section of the 2018 Statement to reflect that exchanges may now list
security futures on certain debt instruments. FINRA is not proposing
any textual changes to FINRA rules. The National Futures Association
(``NFA'') has proposed parallel amendments to the Statement for its
members.\6\
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    \4\ See Position Limits and Position Accountability for Security
Futures Products, 84 FR 51005 (September 27, 2019) (amending CFTC
Regulation 41.25); see also Ownership and Control Reports, Forms
102/102S, 40/40S, and 71, 78 FR 69178 (November 18, 2013) (amending
CFTC Rule 17.02, among others).
    \5\ See Securities Exchange Act Release No. 67090 (May 31,
2012), 77 FR 33531 (June 6, 2012) (Order Approving File No. SR-
FINRA-2011-054).
    \6\ See Letter from Carol A. Wooding, NFA's Senior Vice
President and General Counsel, to Christopher J. Kirkpatrick, Office
of the Secretariat, CFTC, dated May 29, 2020.
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    The proposed updated Statement (the ``2020 Statement''), reflecting
all cumulative updates, is attached as Exhibit 3a. The proposed
supplement pertaining to changes to the specified paragraphs under
Sections 8.2 and 2.7, and the Introduction, as described herein (the
``2020 Supplement'') is attached as Exhibit 3b.
    The text of the proposed rule change is available on FINRA's
website at http://www.finra.org, at the principal office of FINRA and
at the Commission's Public Reference Room.

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

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

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

1. Purpose
Background
    Subparagraph (A) under Rule 2370(b)(11) (Delivery of Security
Futures Risk Disclosure Statement) requires a member to deliver the
current security futures risk disclosure statement to each customer at
or prior to the time such customer's account is approved for trading
security futures.\7\ Thereafter, the member must distribute each new or
revised security futures risk disclosure statement to each customer
having an account approved for such trading or, in the alternative, not
later than the time a confirmation of a transaction is delivered to
each customer that enters into a security futures transaction. The Rule
requires FINRA to advise members when a new or revised security futures
risk disclosure statement is available.
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    \7\ In general, the Security Futures Risk Disclosure Statement
provides customers with disclosures regarding the characteristics
and potential risks of investing in standardized security futures
contracts traded on regulated U.S. exchanges.
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    The Statement is a uniform statement that was jointly developed by
several self-regulatory organizations (``SROs''), including FINRA and
the NFA, and approved by the SEC in 2002.\8\ Since then, specified
sections of the Statement have undergone updates,\9\ the most recent of
which occurred in 2018, which incorporated all cumulative updates made
since 2002.\10\ The 2018 Statement is currently posted on
FINRA.org.\11\
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    \8\ See Securities Exchange Act Release No. 46862 (November 20,
2002), 67 FR 70993 (November 27, 2002) (Order Approving File No. SR-
NASD-2002-129); see also Securities Exchange Act Release No. 46613
(October 7, 2002), 67 FR 64176 (October 17, 2002) (Notice of Filing
and Effectiveness of File No. SR-NFA-2002-05).
    \9\ See Securities Exchange Act Release No. 62787 (August 27,
2010), 75 FR 53998 (September 2, 2010) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2010-045) (revising
Section 8.1 of the Statement to indicate that price adjustments for
ordinary dividends may be made for a specified class of security
future contracts based on the rules of the exchange and the clearing
organization); see also Securities Exchange Act Release No. 71981
(April 21, 2014), 79 FR 23034 (April 25, 2014) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2014-019) (revising
Section 5.2 of the Statement to list a product with a physical
delivery settlement cycle shorter than three business day, and to
indicate the then normal clearance and settlement cycle for
securities transactions).
    \10\ See Securities Exchange Act Release No. 83407 (June 11,
2018), 83 FR 28045 (June 15, 2018) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2018-024) (updating Sections 5.2
and 6.1 of the Statement, respectively, to reflect that the normal
clearance and settlement cycle for securities transactions is now
two business days, and update the address for the Securities
Investor Protection Corporation (``SIPC'')); see also Securities
Exchange Act Release No. 83825 (August 10, 2018), 83 FR 40819
(August 16, 2018) (Notice of Filing and Immediate Effectiveness of
File No. SR-FINRA-2018-028) (updating Section 6.1 of the Statement
to change the reference to SIPC's cash limit protection from
$100,000 to $250,000).
    \11\ See FINRA's Security Futures Topic Page, https://www.finra.org/rules-guidance/key-topics/security-futures.
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Proposed Updates to the Statement

A. Section 8.2 (Position Limits and Large Trader Reporting)

    In general, security futures contracts that trade on U.S.-regulated
exchanges are subject to position limits or position accountability
rules, and reporting requirements for large open positions. Section 8.2
of the Statement describes, in general terms, these requirements by
specifying the position limit thresholds, and reporting requirements
for large open positions,\12\ which accord with CFTC Regulation 41.25
(Additional conditions for trading for security futures products.),
governing position limits and position accountability for security
futures products, and Rule 17.02 (Form, manner and time of filing
reports.), pertaining to CFTC Form 102 (Identification of ``Special
Accounts'').\13\ The CFTC has amended these requirements and for that
reason, FINRA is proposing to update Section 8.2 to reflect the current
terms of CFTC Regulation 41.25 and Rule 17.02(b)(2) that increase the
default position limits, modify the criteria for setting a higher
position limit and position accountability level, and adjust the time
during which position limits must be in effect and the time by which
firms must submit Form 102 to the CFTC and the exchange on which the
reportable position exists.\14\
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    \12\ Section 8.2 provides in part: ``Position limits are
required for security futures contracts that overlie a security that
has an average daily trading volume of 20 million shares or fewer.
In the case of a security futures contract overlying a security
index, position limits are required if any one of the securities in
the index has an average daily trading volume of 20 million shares
or fewer. Position limits also apply only to an expiring security
futures contract during its last five trading days. A regulated
exchange must establish position limits on security futures that are
no greater than 13,500 (100 share) contracts, unless the underlying
security meets certain volume and shares outstanding thresholds, in
which case the limit may be increased to 22,500 (100 share)
contracts. For security futures contracts overlying a security or
securities with an average trading volume of more than 20 million
shares, regulated exchanges may adopt position accountability rules.
Under position accountability rules, a trader holding a position in
a security futures contract that exceeds 22,500 contracts (or such
lower limit established by an exchange) must agree to provide
information regarding the position and consent to halt increasing
that position if requested by the exchange.'' With respect to
reporting large open positions, Section 8.2 also indicates that
``brokerage firms must submit identifying information on the account
holding the reportable position on a form referred to as either an
``Identification of Special Accounts Form'' or a ``Form 102'') to
the CFTC and to the exchange on which the reportable position exists
within three business days of which a reportable position is first
established.''
    \13\ 17 CFR 17.02(b)(2).
    \14\ See supra note 4.
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    FINRA is proposing to update the second, third, and fourth
paragraphs under Section 8.2 of the Statement to read as follows
(proposed updates are marked):

    Position limits are required for security futures contracts
[that overlie] on a security [that has an average daily trading
volume of 20 million shares or fewer. In the case of a security
futures contract overlying a security index, position limits are
required if any one of the securities in the index has an average
daily trading volume of 20 million shares or fewer.] Position limits
also apply only to an expiring security futures contract during its
last [five] three trading days. A regulated exchange must establish
a default position limits on a security futures contract that [are]
is no greater than [13,000] 25,000 [(]100-share[)] contracts (or the
equivalent if the contract size is different than 100 shares),
either net or on the same side of the market, unless the underlying
security [meets certain volume and shares outstanding thresholds]
exceeds 20 million shares of estimated deliverable supply, in which
case the limit may be [increased to 22,500 (100 share) contracts]
set at a level no greater than 12.5 percent of the estimated
deliverable supply of the underlying security, either net or on the
same side of the market.
    For a security futures contract[s overlying] on a security [or
securities] with [an average] a six-month total trading volume of
more than [20 million] 2.5 billion shares and there are more than 40
million shares of estimated deliverable supply, a regulated
exchange[s] may adopt a position accountability rule[s] in lieu of a
position limit, either net or on the same side of the market. Under
position accountability rules, a trader holding a position in a
security futures contract that exceeds [22,500] 25,000 100-share
contracts (or [such lower limit established by an exchange] the
equivalent if the contract size is different than 100 shares) or
such lower level specified under the rules of the exchange, must
agree to provide information regarding the position and consent to
halt increasing that position if requested by the exchange.
    Brokerage firms must also report large open positions held by
one person (or by several persons acting together) to the CFTC as
well as to the exchange on which the positions are held. The CFTC's
reporting requirements are 1,000 contracts for security futures
positions on individual equity securities and 200

contracts for positions on a narrow-based index. However, individual
exchanges may require the reporting of large open positions at
levels less than the levels required by the CFTC. In addition,
brokerage firms must submit identifying information on the account
holding the reportable position (on a form referred to as either an
``Identification of Special Accounts Form'' or a ``Form 102'') to
the CFTC and to the exchange on which the reportable position exists
[within three business days of] no later than the following business
day when a reportable position is first established.
B. Section 2.7 (Trading Halts)
    Section 2.7 of the Statement addresses the impact of a trading halt
on the value of security futures contracts and states that in certain
circumstances, exchanges are required by law to halt trading in
security futures contracts. Currently, Section 2.7 states, in part,
that ``regulated exchanges are required to halt trading in all security
futures contracts for a specified period of time when the Dow Jones
Industrial Average (``DJIA'') experiences one-day declines of 10-, 20-
and 30-percent.'' The SEC has approved proposals by SROs, including
FINRA, to shift the benchmark against which to assess serious market
decline from the DJIA to the S&P 500, and reduce the market decline
thresholds to seven-, 13- and 20-percent.\15\ FINRA is therefore
proposing to update Section 2.7 of the Statement to reflect these
changes by updating the fifth sentence of the first paragraph under
Section 2.7 to read as follows (proposed updates are marked):
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    \15\ See supra note 5.

    In addition, regulated exchanges are required to halt trading in
all security futures contracts for a specified period of time when
the [Dow Jones Industrial Average (``DJIA'')] S&P 500 Index
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experiences one-day declines of 10 seven-, 20 13- and 30 20-percent.

C. Introductory Section to the Statement
    The Statement begins with a brief introductory section
(``Introduction''), stating that the Statement discusses the
characteristics and risks of standardized security futures contracts
traded on regulated U.S. exchanges. The Introduction also describes the
types of securities on which security futures can be based, providing,
in part, that ``[a]t present, regulated exchanges are authorized to
list futures contracts on individual equity securities registered under
the Securities Exchange Act of 1934 (including common stock and certain
exchange-traded funds and American Depositary Receipts), as well as
narrow-based security indices. Futures on other types of securities and
options on security futures contracts may be authorized in the
future.'' The SEC and CFTC adopted SEC Rule 6h-2 \16\ and an amendment
to CFTC Regulation 41.21,\17\ respectively, to permit security futures
to be based on individual debt securities or narrow-based indexes
composed of such securities.\18\ In recognition of this change, FINRA
is proposing to update the second sentence of the first paragraph of
the Introduction to include a reference to debt instruments so that it
reads (proposed updates are marked):
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    \16\ 17 CFR 240.6h-2.
    \17\ 17 CFR 41.21.
    \18\ See Securities Exchange Act Release No. 54106 (July 6,
2006), 71 FR 39534 (July 13, 2006).

    At present, regulated exchanges are authorized to list futures
contracts on individual equity securities registered under the
Securities Exchange Act of 1934 (including common stock and certain
exchange-traded funds and American Depositary Receipts), futures on
certain debt instruments as well as narrow-based security indices.
D. Availability of Updated Statement on FINRA.org
    Currently, the 2018 Statement and its corresponding 2018 Supplement
are posted on FINRA's website.\19\ The preceding updates to the
Statement made in 2010 and 2014 are also posted on the website.\20\ In
accordance with existing guidance, a member could satisfy Rule
2370(b)(11)(A) by redistributing the entire Statement to its security
futures customers or separately distributing each new supplement to
those customers who have already received the Statement.\21\ FINRA
reminds members that they may electronically transmit documents that
they are required to furnish to customers under FINRA rules, including
the 2020 Statement or 2020 Supplement, provided that members adhere to
the standards contained in the SEC's May 1996 and October 1995 released
on electronic delivery,\22\ and as discussed in Notice to Members 98-3.
Members may also transmit the 2020 Statement or 2020 Supplement, as
appropriate, to customers through the use of a hyperlink, provided that
customers have consented to electronic delivery.\23\
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    \19\ See supra note 11.
    \20\ See supra note 11.
    \21\ See Information Notice, September 7, 2010 (August 2010
Supplement to the Security Futures Risk Disclosure Statement); see
also Regulatory Notice 14-24 (May 2014) (stating, a member may
separately distribute new supplements to such customers and that a
member is not required to redistribute the entire Statement or
earlier supplements).
    \22\ See Securities Act Release No. 7288 (May 9, 1996), 61 FR
24644 (May 15, 1996) and Securities Act Release No. 7233 (October 6,
1995), 60 FR 53458 (October 13, 1995). See also Securities Act
Release No. 7856 (April 28, 2000), 65 FR 25843 (May 4, 2000)
(affirming the framework for electronic delivery established in the
1995 and 1996 releases).
    \23\ See supra note 22.
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    As noted above, the Statement is a uniform statement that was
jointly developed by FINRA, the NFA, and several other securities and
futures exchanges. FINRA is proposing to incorporate the updates
proposed herein into the main body of the 2020 Statement and to publish
it on the FINRA website.
    To facilitate a member's compliance with Rule 2370(b)(11)(A) as
articulated in guidance, FINRA is also proposing to encapsulate the
proposed updates to the Statement into the 2020 Supplement that would
show the proposed updates to Sections 8.2 and 2.7, and the
Introduction, as described above. The 2020 Supplement would appear on
FINRA's website as a separate document to continue to afford members
with the flexibility to comply with the requirements of Rule
2370(b)(11)(A) by separately distributing the Supplement to customers
who have already received the 2018 Statement.\24\
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    \24\ FINRA's Security Futures Topic Page includes an ``Archive''
in which the 2002 Security Futures Risk Disclosure Statement (with
the August 2010 and April 2014 supplements appended), and the
separate August 2010 Supplement and April 2014 Supplement currently
sit. In an effort to streamline this topic page, FINRA is proposing
to remove these older materials from the Archive on the basis that
those updates are incorporated into the main body of the Statement.
In their stead, FINRA is proposing to move the 2018 Statement and
the 2018 Supplement to the ``Archive'' section of the Security
Futures Topic Page.
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    FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so FINRA can implement the proposed rule change in
coordination with the parallel changes that the NFA has proposed to the
Statement for its members.\25\ FINRA will announce the implementation
date of the proposed rule change in a Regulatory Notice to be published
no later than 30 days following Commission notice of the filing of the
proposed rule change for immediate effectiveness.
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    \25\ See supra note 6.
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2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\26\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and

equitable principles of trade, and, in general, to protect investors
and the public interest. FINRA believes that updating the Statement to
incorporate into the main body all updates discussed within the
supplement will help to accurately inform customers of the
characteristics and risks of security futures. The proposed updated
Statement would also reflect the circumstances under which regulated
exchanges are required to halt trading in all security futures
contracts and set forth the position limit and accountability rules
that currently apply to transactions in security futures.
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    \26\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. While FINRA recognizes that
there may be a burden associated with the distribution of the proposed
updated Statement or supplement, FINRA believes that any such burden
would be outweighed by the benefit to customers of accurately
disclosing the characteristics and risks of security futures. FINRA
also believes that any burden will be minimal because firms currently
have an existing obligation to deliver each new or updated Statement or
supplement to customers. Firms may electronically transmit documents
that they are required to furnish to customers under FINRA rules,
including the proposed updated Statement or supplement, provided firms
adhere to the standards described above. Firms also may transmit the
proposed updated Statement or supplement to customers through the use
of a hyperlink, provided that customers have consented to electronic
delivery.\27\ Moreover, Rule 2370(b)(11) provides flexibility on when
each updated Statement or supplement must be delivered after a
customer's account is approved for trading security futures. Instead of
having to automatically and immediately distribute an updated Statement
or supplement to every customer having an account approved for trading
security futures, a firm may distribute an updated Statement or
supplement no later than the time a confirmation of a transaction is
delivered to each customer who enters into a security futures
transaction. Accordingly, firms would not be required to distribute the
proposed updated Statement or supplement to customers who have accounts
approved for trading security futures but do not engage in any new
security futures transactions.
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    \27\ See Information Notice, September 7, 2010 (August 2010
Supplement to the Security Futures Risk Disclosure Statement).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \28\ and Rule 19b-
4(f)(6) thereunder.\29\
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    \28\ 15 U.S.C. 78s(b)(3)(A).
    \29\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
FINRA has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \30\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \31\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. FINRA has
requested that the Commission waive the 30-day operative delay so that
FINRA may immediately implement the proposed change in coordination
with the parallel changes that the NFA has proposed to the Statement
for its members. Because the proposal merely updates the Statement with
changes already approved by the CFTC, with respect to position limits
on futures contracts, and the Commission, with respect to trading
halts, the Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest.
Accordingly, the Commission waives the 30-day operative delay and
designates the proposed rule change as operative upon filing.\32\
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    \30\ 17 CFR 240.19b-4(f)(6).
    \31\ 17 CFR 240.19b-4(f)(6)(iii).
    \32\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2020-025 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-FINRA-2020-025. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of FINRA. All comments received
will be posted without change. Persons submitting comments are
cautioned that

we do not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
FINRA-2020-025 and should be submitted on or before September 24, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2020-19451 Filed 9-2-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Proposed Rules]
[Pages 11473-11475]
[FR Doc No: 2016-04542]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-4233; Directorate Identifier 2016-CE-003-AD]
RIN 2120-AA64

Airworthiness Directives; Blanik Limited Gliders

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

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
Blanik Limited Models L-13 Blanik and L-13 AC Blanik gliders (type
certificate previously by LET Aeronautical Works) that would supersede
AD 99-19-33. This proposed AD results from mandatory continuing
airworthiness information (MCAI) originated by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as lack of
distinct color marking of the elevator drive. We are issuing this
proposed AD to require actions to address the unsafe condition on these
products.

DATES: We must receive comments on this proposed AD by April 18, 2016.

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

and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Blanik Limited, 2nd Floor Beaux Lane House, Mercer Street Lower, Dublin
2, Republic of Ireland; phone: +420 733 662 194; email:
<EMAIL_ADDRESS>Internet: http://www.blanik.aero/%EF%BB%BFcustomer_support. You may review this referenced service
information at the FAA, Small Airplane Directorate, 901 Locust, Kansas
City, Missouri 64106. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-
4233; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this proposed AD, the regulatory evaluation, any comments
received, and other information. The street address for the Docket
Office (telephone<PHONE_NUMBER>) is in the ADDRESSES section. Comments
will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Jim Rutherford, Aerospace Engineer,
FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City,
Missouri 64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2016-4233;
Directorate Identifier 2016-CE-003-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD because of those comments.
    We will post all comments we receive, without change, to http://regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    On November 8, 1999, we issued AD 99-19-33, Amendment 39-11320 (64
FR 50440; September 17, 1999) (``99-19-33''). That AD required actions
intended to address an unsafe condition on BLANIK LIMITED Models L-13
Blanik gliders and was based on mandatory continuing airworthiness
information (MCAI) originated by the Civil Aviation Authority, which is
the aviation authority for the Czech Republic. That MCAI (AD CAA-AD-4-
099/98, dated December 30, 1998) was issued to correct an unsafe
condition for EVECTOR, spol. s.r.o. Models L 13 SEH VIVAT and L 13 SDM
VIVAT gliders and BLANIK LIMITED Models L-13 Blanik and L-13 AC Blanik
gliders. The MCAI states:

    Colour marking of elevator drive is not inspected or re-painted
during sailplane operation. The elevator drive is asymmetrical and
improper installation causes significant elevator deflection
changes.

    You may examine the MCAI on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-
4233.
    A review of records since issuance of AD 99-19-33 revealed that the
FAA inadvertently did not address this MCAI for the EVECTOR, spol.
s.r.o. Models L 13 SEH VIVAT and L 13 SDM VIVAT gliders and the BLANIK
LIMITED Model L-13 AC Blanik gliders. This proposed AD would supersede
AD 99-19-13 to add the BLANIK LIMITED Model L-13 AC Blanik gliders to
the applicability of the AD.
    The FAA will address the EVECTOR, spol. s.r.o. Models L 13 SEH
VIVAT and L 13 SDM VIVAT gliders in another AD action.

Related Service Information Under 1 CFR Part 51

    LET Aeronautical Works has issued LET Mandatory Bulletin MB No.:
L13/082a, dated December 10, 1998. The service information describes
procedures for painting the left arm of the elevator drive. This
service information is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section of this NPRM.

FAA's Determination and Requirements of the Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with this State of Design Authority, they
have notified us of the unsafe condition described in the MCAI and
service information referenced above. We are proposing this AD because
we evaluated all information and determined the unsafe condition exists
and is likely to exist or develop on other products of the same type
design.

Costs of Compliance

    We estimate that this proposed AD will affect 124 products of U.S.
registry. We also estimate that it would take about 1 work-hour per
product to comply with the basic requirements of this proposed AD. The
average labor rate is $85 per work-hour. Required parts would cost
about $10 per product.
    Based on these figures, we estimate the cost of the proposed AD on
U.S. operators to be $11,780, or $95 per product.

Authority for This Rulemaking

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

Regulatory Findings

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

    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 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 removing Amendment 39-11320 (64 FR
50440; September 17, 1999), and adding the following new AD:

Blanik Limited: Docket No. FAA-2016-4233; Directorate Identifier
2016-CE-003-AD.

(a) Comments Due Date

    We must receive comments by April 18, 2016.

(b) Affected ADs

    This AD replaces AD 99-19-33, Amendment 39-11320 (64 FR 50440;
September 17, 1999) (``AD 99-19-33'').

(c) Applicability

    This AD applies to BLANIK LIMITED Models L-13 Blanik and L-13 AC
Blanik gliders (type certificate previously by LET Aeronautical
Works), all serial numbers, certificated in any category.

(d) Subject

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

(e) Reason

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) originated by an aviation authority of another
country to identify and correct an unsafe condition on an aviation
product. The MCAI describes the unsafe condition as lack of distinct
color marking of the elevator drive. We are issuing this AD to
prevent inadvertent backward installation of the elevator drive,
which could cause significant elevator deflection changes and lead
to loss of control.

(f) Actions and Compliance

    Unless already done, do the following actions in paragraphs
(f)(1) and (f)(2) of this AD, including all subparagraphs:
    (1) Model L-13 Blanik gliders:
    (i) Within the next 3 calendar months after November 8, 1999
(the effective date retained from AD 99-19-33), paint the elevator
drive mechanism using a contrasting color (such as red) following
the procedures in LET Mandatory Bulletin MB No.: L13/082a, dated
December 10, 1998.
    (ii) As of November 8, 1999 (the effective date retained from AD
99-19-33), only install an elevator bellcrank that has been painted
as specified in paragraph (f)(1)(i) of this AD and that has been
properly oriented to make sure it is not being installed backward.
    (2) Model L-13 AC Blanik gliders:
    (i) Within the next 3 calendar months after the effective date
of this AD, paint the elevator drive mechanism using a contrasting
color (such as red) following the procedures in LET Mandatory
Bulletin MB No.: L13/082a, dated December 10, 1998.
    (ii) As of the effective date of this AD, only install an
elevator bellcrank that has been painted as specified in paragraph
(f)(2)(i) of this AD and that has been properly oriented to make
sure it is not being installed backward.

 (g) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Standards Office, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. Send
information to ATTN: Jim Rutherford, Aerospace Engineer, FAA, Small
Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri
64106; telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>Before using any approved AMOC on any
airplane to which the AMOC applies, notify your appropriate
principal inspector (PI) in the FAA Flight Standards District Office
(FSDO), or lacking a PI, your local FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.

(h) Related Information

    Refer to MCAI Civil Aviation Authority AD CAA-AD-4-099/98, dated
December 30, 1998, for related information. You may examine the MCAI
on the Internet at http://www.regulations.gov by searching for and
locating Docket No. FAA-2016-4233. For service information related
to this AD, contact Blanik Limited, 2nd Floor Beaux Lane House,
Mercer Street Lower, Dublin 2, Republic of Ireland; phone: +420 733
662 194; email<EMAIL_ADDRESS>Internet: http://www.blanik.aero/%EF%BB%BFcustomer_support. You may review this referenced service
information at the FAA, Small Airplane Directorate, 901 Locust,
Kansas City, Missouri 64106. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.

    Issued in Kansas City, Missouri, on February 24, 2016.
Robert P. Busto,
Acting Manager, Small Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2016-04542 Filed 3-3-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 55 (Friday, March 21, 2014)]
[Rules and Regulations]
[Pages 15676-15677]
[FR Doc No: 2014-05896]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2014-0094; Airspace Docket No. 14-ANM-1]
RIN 2120-AA66

Amendment of VOR Federal Airway V-626, Utah

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; technical amendment.

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SUMMARY: This action makes an editorial change to the legal description
of VHF Omnidirectional Range (VOR) Federal airway V-626 to reverse the
order of

points listed in the route description. This action is simply to comply
with the standard format for describing routes. The existing alignment
of the airway is not affected by this action.

DATES: Effective Dates: 0901 UTC, May 29, 2014. The Director of the
Federal Register approves this incorporation by reference action under
1 CFR part 51, subject to the annual revision of FAA Order 7400.9 and
publication of conforming amendments.

FOR FURTHER INFORMATION CONTACT: Colby Abbott, Airspace Policy and
Regulations Group, Office of Airspace Services, Federal Aviation
Administration, 800 Independence Avenue SW., Washington, DC 20591;
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    Current format guidelines for airway and route legal descriptions
require that the order of points in a description be listed from
``west-to-east'' or from ``south-to-north,'' as applicable. The
description for V-626 lists the points from ``east-to-west.'' This rule
simply reverses the order of the points to a ``west-to-east'' format
for standardization.

The Rule

    This action amends Title 14 Code of Federal Regulations (14 CFR)
part 71 by reversing the order of points listed in the legal
description of VOR Federal airway V-626. This is only an editorial
change to comply with the standard route description format. The change
does not alter the current alignment of V-626 and the airway track is
correct on aeronautical charts.
    Since this action merely involves an editorial change in the legal
description of VOR Federal airway V-626 to standardize the format, and
does not involve a change in the dimensions or operating requirements
of the affected route, I find that notice and public procedures under 5
U.S.C. 553(b) are unnecessary.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this regulation: (1) Is not a ``significant regulatory
action'' under Executive Order 12866; (2) is not a ``significant rule''
under DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a Regulatory Evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that only affects air traffic procedures and air navigation, it is
certified that this rule, when promulgated, does not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of the
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it is merely an editorial change of the legal description of V-626
to comply with existing administrative format procedures.
    Domestic VOR Federal Airways are published in paragraph 6010(a) of
FAA Order 7400.9X, dated August 7, 2013, and effective September 15,
2013, which is incorporated by reference in 14 CFR 71.1. The VOR
Federal airway listed in this document will be published subsequently
in the Order.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1E, Environmental Impacts: Policies and Procedures,
paragraph 311a. This airspace action consists of editorial changes only
and is not expected to cause any potentially significant environmental
impacts, and no extraordinary circumstances exist that warrant
preparation of an environmental assessment.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

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

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

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

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

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of the Federal
Aviation Administration Order 7400.9X, Airspace Designations and
Reporting Points, dated August 7, 2013, and effective September 15,
2013, is amended as follows:

Paragraph 6010(a) Domestic VOR Federal airways.
* * * * *

V-626 [Amended]

    From INT Fairfield, UT, 126[deg] and Myton, UT, 264[deg]
radials; to Myton.

    Issued in Washington, DC, on March 11, 2014.
Gary A. Norek,
Manager, Airspace Policy and Regulations Group.
[FR Doc. 2014-05896 Filed 3-20-14; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 239 (Monday, December 14, 2015)]
[Notices]
[Pages 77336-77337]
[FR Doc No: 2015-31392]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP15-91-000]

East Tennessee Natural Gas, LLC; Revised Notice of Schedule for
Environmental Review of the Loudon Expansion Project

    This notice identifies the Federal Energy Regulatory Commission
(Commission or FERC) staff's revised schedule for the completion of the
environmental assessment (EA) for East Tennessee Natural Gas, LLC's
Loudon Expansion Project. The previous notice of schedule, issued on
October 28, 2015, identified December 21, 2015 as the EA issuance date.
Staff has revised the schedule for issuance of the EA.

Schedule for Environmental Review

Issuance of EA--December 28, 2015
90-day Federal Authorization Decision Deadline--March 27, 2016

    If a schedule change becomes necessary, additional notice will be
provided so that the relevant agencies are kept informed of the
project's progress.

Additional Information

    In order to receive notification of the issuance of the EA and to
keep track of all formal issuances and submittals in specific dockets,
the Commission offers a free service called eSubscription. Go to
www.ferc.gov/docs-filing/esubscription.asp.

    Dated: December 8, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-31392 Filed 12-11-15; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 199 (Monday, October 15, 2018)]
[Notices]
[Page 52039]
[FR Doc No: 2018-22296]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84383; File No. SR-NYSEArca-2018-60]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To List and Trade Shares of the First Trust Long Duration
Opportunities ETF Under NYSE Arca Rule 8.600-E

October 9, 2018.
    On August 17, 2018, NYSE Arca, Inc. (``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
shares of the First Trust Long Duration Opportunities ETF pursuant to
NYSE Arca Rule 8.600-E. The proposed rule change was published for
comment in the Federal Register on August 30, 2018.\3\ The Commission
has received no comment letters on the proposed rule change.
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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. 83936 (August 24,
2018), 83 FR 44312.
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    Section 19(b)(2) of the Act \4\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding, or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
45th day after publication of the notice for this proposed rule change
is October 14, 2018. The Commission is extending this 45-day time
period.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period
within which to take action on the proposed rule change so that it has
sufficient time to consider the proposed rule change. Accordingly, the
Commission, pursuant to Section 19(b)(2) of the Act,\5\ designates
November 28, 2018 as the date by which the Commission shall either
approve or disapprove, or institute proceedings to determine whether to
disapprove, the proposed rule change (File No. SR-NYSEArca-2018-60).
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    \5\ Id.
    \6\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22296 Filed 10-12-18; 8:45 am]
 BILLING CODE 8011-01-P