[Federal Register Volume 80, Number 236 (Wednesday, December 9, 2015)]
[Notices]
[Page 76612]
[FR Doc No: 2015-31032]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. 2015-67]

Petition for Exemption; Summary of Petition Received; Southern
AeroMedical Institute

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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

SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14 of the Code of Federal
Regulations. The purpose of this notice is to improve the public's
awareness of, and participation in, the FAA's exemption process.
Neither publication of this notice nor the inclusion or omission of
information in the summary is intended to affect the legal status of
the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before December 29, 2015.

ADDRESSES: Send comments identified by docket number FAA-2015-3596
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to http://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Brent Hart<PHONE_NUMBER>, Office of
Rulemaking, Federal Aviation Administration, 800 Independence Avenue
SW., Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on December 3, 2015.
James Crotty,
Manager, Aircraft and Airport Division.

Petition for Exemption

    Docket No.: FAA-2015-3596.
    Petitioner: Southern AeroMedical Institute (SAMI).
    Section(s) of 14 CFR Affected: 61.31(g)(2).
    Description of Relief Sought: To further enhance and reinforce the
training objective as to the dangers of cabin depressurization.

[FR Doc. 2015-31032 Filed 12-8-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: June 10, 2010 (Volume 75, Number 111)]
[Proposed Rules]
[Page 32865-32866]
[DOCID:fr10jn10-17]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2010-0119 Airspace Docket No. 10-AAL-6]

Proposed Revision of Class E Airspace; Unalakleet, AK

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to revise Class E airspace at Unalakleet,
AK. The amendment and development of two (each) Standard Instrument
Approach Procedures (SIAPs), and the development of one Obstacle
Departure Procedure (ODP) at the Unalakleet Airport have made this
action necessary to enhance safety and management of Instrument Flight
Rules (IFR) operations.

DATES: Comments must be received on or before July 26, 2010.

ADDRESSES: Send comments on the proposal to the Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-
0001. You must identify the docket number FAA-2010-0299/Airspace Docket
No. 10-AAL-9 at the beginning of your comments. You may also submit
comments on the Internet at http://www.regulations.gov. You may review
the public docket containing the proposal, any comments received, and
any final disposition in person in the Dockets Office between 9 a.m.
and 5 p.m., Monday through Friday, except Federal holidays. The Docket
Office (telephone 1-800-647-5527) is on the plaza level of the
Department of Transportation NASSIF Building at the above address.
    An informal docket may also be examined during normal business
hours at the office of the Manager, Safety, Alaska Flight Service
Operations, Federal Aviation Administration, 222 West 7th Avenue, Box
14, Anchorage, AK 99513-7587.

FOR FURTHER INFORMATION CONTACT: Gary Rolf, Federal Aviation
Administration, 222 West 7th Avenue, Box 14, Anchorage, AK 99513-7587;
telephone number<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>Internet address: http://www.faa.gov/about/
office_org/headquarters_offices/ato/service_units/systemops/fs/
alaskan/rulemaking/.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2010-0119/
Airspace Docket No. 10-AAL-6.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received on or before the specified closing date
for comments will be considered before taking action on the proposed
rule. The proposal contained in this notice may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the closing date
for comments. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://
www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_
amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition, in person in the Federal
Docket Management System Office (see ADDRESSES section for address and
phone number) between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. An informal docket may also be examined during normal
business hours at the office of the Alaska Flight Services Information
Area Group. Persons interested in being placed on a mailing list for
future NPRM's should contact the FAA's Office of Rulemaking, (202) 267-
9677, to request a copy of Advisory Circular No. 11-2A, Notice of
Proposed Rulemaking Distribution System, which describes the
application procedure.

The Proposal

    This action proposes to amend Title 14 Code of Federal Regulations
(14 CFR) part 71 by revising Class E airspace at Unalakleet, AK, to
accommodate a new departure procedure, and new and amended SIAPs at
Unalakleet Airport. This Class E airspace would provide adequate
controlled airspace upward from the surface, and from 700 and 1,200
feet above the surface for the safety and management of IFR operations
at Unalakleet Airport.
    The Class E2 surface areas are published in paragraph 6002 in FAA
Order 7400.9T, Airspace Designations and Reporting Points, signed
August 27, 2009, and effective September 15, 2009, which is
incorporated by reference in 14 CFR 71.1. The Class E airspace areas
designated as 700/1200 foot transition areas are published in paragraph
6005 in FAA Order 7400.9T, Airspace Designations and Reporting Points,
signed August 27, 2009, and effective September 15, 2009, which is
incorporated by reference in 14 CFR 71.1. The Class E airspace
designations listed in this document would be subsequently published in
the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(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. Because this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, will 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 1, 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 1, Section 40103, Sovereignty and use of
airspace. Under that section, the FAA is charged with prescribing
regulations to ensure the safe and efficient use of the navigable
airspace. This regulation is within the scope of that authority because
it proposes to revise airspace at Unalakleet, Alaska, and represents
the FAA's continuing effort to safely and efficiently use the navigable
airspace.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

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

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

    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]

    2. The incorporation by reference in 14 CFR 71.1 of Federal
Aviation Administration Order 7400.9T, Airspace Designations and
Reporting Points, signed August 27, 2009, and effective September 15,
2009, is to be amended as follows:
* * * * *

Paragraph 6002 Class E Airspace Designated as Surface Areas.

* * * * *

AAL AK E2 Unalakleet, AK [Revised]

Unalakleet Airport, AK
    (Lat. 63[deg]53'19'' N., long. 160[deg]47'57'' W.)
Unalakleet Localizer
    (Lat. 63[deg]52'52'' N., long. 160[deg]47'42'' W.)

    Within a 4.2-mile radius of the Unalakleet Airport, AK, and
within 3.2 miles each side of the Unalakleet Localizer front course,
extending from the 4.2-mile radius to 12.6 miles northwest of the
Unalakleet Airport, AK. This Class E airspace area is effective
during the specific dates and times established in advance by Notice
to Airmen. The effective date and time will thereafter be
continuously published in the Supplement Alaska (Airport/Facility
Directory).
* * * * *

Paragraph 6005 Class E Airspace Extending Upward from 700 Feet or
More Above the Surface of the Earth.

* * * * *

AAL AK E5 Unalakleet, AK [Revised]

Unalakleet Airport, AK
    (Lat. 63[deg]53'19'' N., long. 160[deg]47'57'' W.)
Unalakleet Localizer
    (Lat. 63[deg]52'52'' N., long. 160[deg]47'42'' W.)
Unalakleet VOR/DME
    (Lat. 63[deg]52'31'' N., long. 160[deg]41'04'' W.)

    That airspace extending upward from 700 feet above the surface
within a 7.3-mile radius of the Unalakleet Airport, AK, and within
3.8 miles either side of the 289 radial of the Unalakleet VOR/DME,
extending from the 7.3-mile radius to 15.4 miles west of the
Unalakleet VOR/DME, and within 3.6 miles either side of the
Unalakleet Localizer front course, extending from the 7.3-mile
radius to 13.6 miles northwest of the Unalakleet Airport; and that
airspace extending upward from 1,200 feet above the surface within a
74-mile radius of the Unalakleet Airport, AK.

    Issued in Anchorage, AK, on May 28, 2010.
Michael A. Tarr,
Acting Manager, Alaska Flight Services Information Area Group.
[FR Doc. 2010-13990 Filed 6-9-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: October 11, 2007 (Volume 72, Number 196)]
[Notices]
[Page 57927-57928]
[DOCID:fr11oc07-48]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 12856-000; FFP Project 3, LLC]

Notice of Application Accepted for Filing and Soliciting Motions
To Intervene, Protests, and Comments

October 3, 2007.
    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection:
    a. Type of Application: Preliminary Permit.
    b. Project No.: 12856-000.
    c. Date filed: July 25, 2007.
    d. Applicant: FFP Project 3, LLC.
    e. Name of Project: Ironton Light Project.
    f. Location: The project would be located on the Mississippi River
in Plaquemines Parish, Louisiana. The project uses no dam or
impoundment.
    g. Filed Pursuant to: Federal Power Act, 16 U.S.C. 791(a)--825(r).
    h. Applicant Contact: Mr. Dan Irvin, FFP Project 3, LLC, 69 Bridge
Street, Manchester, MA 01944, phone<PHONE_NUMBER>.
    i. FERC Contact: Robert Bell,<PHONE_NUMBER>.
    j. Deadline for filing comments, protests, and motions to
intervene: 60 days from the issuance date of this notice.
    All documents (original and eight copies) should be filed with:
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426. Comments, protests, and interventions may be
filed electronically via the Internet in lieu of paper; see 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings. Please include the project number (P-12856-000) on
any comments or motions filed.
    The Commission's Rules of Practice and Procedure require all
intervenors filing documents with the Commission to serve a copy of
that document on each person in the official service list for the
project. Further, if an intervenor files comments or documents with the
Commission relating to the merits of an issue that may affect the
responsibilities of a particular resource agency, they must also serve
a copy of the document on that resource agency.
    k. Description of Project: The proposed project consists of: (1)
1,750 proposed 20 kilowatt Free Flow generating units having a total
installed capacity of 35 megawatts, (2) a proposed transmission line,
and (3) appurtenant facilities. The FFP Project 3, LLC, project would
have an average annual generation of 153.3 gigawatt-hours and be sold
to a local utility.
    l. Locations of Applications: A copy of the application is
available for inspection and reproduction at the Commission in the
Public Reference Room, located at 888 First Street, NE., Room 2A,
Washington, DC 20426, or by calling<PHONE_NUMBER>. This filing may
also be viewed on the Commission's Web site at http://www.ferc.gov

using the ``eLibrary'' link. Enter the docket number excluding the last
three digits in the docket number field to access the document. For
assistance, call toll-free 1-866-208-3676 or e-mail
<EMAIL_ADDRESS>For TTY, call<PHONE_NUMBER>. A copy is

also available for inspection and reproduction at the address in item h
above.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.

    n. Competing Preliminary Permit--Anyone desiring to file a
competing application for preliminary permit for a proposed project
must submit the competing application itself, or a notice of intent to
file such an application, to the Commission on or before the specified
comment date for the particular application (see 18 CFR 4.36).
Submission of a timely notice of intent allows an interested person to
file the competing preliminary permit application no later than 30 days
after the specified comment date for the particular application. A
competing preliminary permit application must conform with 18 CFR 4.30
and 4.36.
    o. Competing Development Application--Any qualified development
applicant desiring to file a competing development application must
submit to the Commission, on or before a specified comment date for the
particular application, either a competing development application or a
notice of intent to file such an application. Submission of a timely
notice of intent to file a development application allows an interested
person to file the competing application no later than 120 days after
the specified comment date for the particular application. A competing
license application must conform with 18 CFR 4.30 and 4.36.
    p. Notice of Intent--A notice of intent must specify the exact
name, business address, and telephone number of the prospective
applicant, and must include an unequivocal statement of intent to
submit, if such an application may be filed, either a preliminary
permit application or a development application (specify which type of
application). A notice of intent must be served on the applicant(s)
named in this public notice.
    q. Proposed Scope of Studies under Permit--A preliminary permit, if
issued, does not authorize construction. The term of the proposed
preliminary permit would be 36 months. The work proposed under the
preliminary permit would include economic analysis, preparation of
preliminary engineering plans, and a study of environmental impacts.
Based on the results of these studies, the Applicant would decide
whether to proceed with the preparation of a development application to
construct and operate the project.
    r. Comments, Protests, or Motions to Intervene--Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211,
.214. In determining the appropriate action to take, the Commission
will consider all protests or other comments filed, but only those who
file a motion to intervene in accordance with the Commission's Rules
may become a party to the proceeding. Any comments, protests, or
motions to intervene must be received on or before the specified
comment date for the particular application.
    Comments, protests and interventions may be filed electronically
via the Internet in lieu of paper. See 18 CFR 385.2001(a)(1)(iii) and
the instructions on the Commission's Web site under ``e-filing'' link.
The Commission strongly encourages electronic filing.
    s. Filing and Service of Responsive Documents--Any filings must
bear in all capital letters the title ``COMMENTS'', ``COMPETING
APPLICATION'', ``RECOMMENDATIONS FOR TERMS AND CONDITIONS'',
``PROTEST'', OR ``MOTION TO INTERVENE'', as applicable, and the Project
Number of the particular application to which the filing refers. Any of
the above-named documents must be filed by providing the original and
the number of copies provided by the Commission's regulations to: The
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426. A copy of any motion to intervene must also be
served upon each representative of the Applicant specified in the
particular application.
    t. Agency Comments--Federal, state, and local agencies are invited
to file comments on the described application. A copy of the
application may be obtained by agencies directly from the Applicant. If
an agency does not file comments within the time specified for filing
comments, it will be presumed to have no comments. One copy of an
agency's comments must also be sent to the Applicant's representatives.

Kimberly D. Bose,
Secretary.
[FR Doc. E7-20017 Filed 10-10-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 210 (Thursday, October 29, 2020)]
[Rules and Regulations]
[Pages 68429-68431]
[FR Doc No: 2020-23929]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0625; Product Identifier 2016-SW-007-AD; Amendment
39-21315; AD 2020-22-19]
RIN 2120-AA64

Airworthiness Directives; Various Restricted Category Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
various restricted category helicopters, originally manufactured by
Sikorsky Aircraft Corporation (Sikorsky), Model EH-60A, HH-60L, S-70,
S-70A, S-70C, S-70C(M), S-70C(M1), and UH-60A. This AD requires initial
and recurring inspections of the main rotor (M/R) blade spindle cuff
for a crack. This AD was prompted by multiple reports of a cracked M/R
blade spindle cuff. These actions are intended to prevent an unsafe
condition on these products.

DATES: This AD is effective December 3, 2020.

ADDRESSES: For service information identified in this final rule,
contact your local Sikorsky Field Representative or Sikorsky's Service
Engineering Group at Sikorsky Aircraft Corporation, 124 Quarry Road,
Trumbull, CT 06611; telephone 1-800-946-4337 (1-800-Winged-S); email
<EMAIL_ADDRESS>Operators may also log on to the
Sikorsky 360 website at https://www.sikorsky360.com. You may view the
referenced service information at the FAA, Office of the Regional
Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort
Worth, TX 76177.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0625; 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 AD, any comments received, and other information. The street
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Kristopher Greer, Aerospace Engineer,
Boston ACO Branch, Compliance and Airworthiness Division, FAA, 1200
District Avenue, Burlington, Massachusetts 01803; telephone 781-238-
7799; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to various restricted
category helicopters, originally manufactured by Sikorsky, Model EH-
60A, HH-60L, S-70, S-70A, S-70C, S-70C(M), S-70C(M1), and UH-60A, with
an M/R blade spindle cuff part number 70150-09109-041 installed. The
NPRM published in the Federal Register on July 9, 2020 (85 FR 41221).
    The NPRM was prompted by multiple reports of a cracked M/R blade
spindle cuff. In 2008, Sikorsky reported an M/R blade spindle cuff on a
Model UH-60A helicopter that cracked across the lower inboard bolt
holes. Investigation determined the crack was caused by a non-
conforming hole edge break, specifically a burr, introduced during an
overhaul at a non-Sikorsky overhaul facility. Sikorsky issued Sikorsky
Safety Advisory No. SSA-S70-08-002, dated December 11, 2008 (SSA-S70-
08-002), for Black Hawk Model H-60- and S-70-series helicopters to
inform operators of the incident and recommend compliance with
Sikorsky's preventative maintenance inspections. The safety advisory
also recommended that operators with M/R blades

overhauled by a non-Sikorsky repair facility contact that facility to
verify whether the hole edge radius requirement was met during the
overhaul.
    In 2015, the FAA received an additional report of an M/R blade
spindle cuff on a military model helicopter that cracked. Investigation
from this reporting has revealed no anomalies at the crack initiation
site. In each instance, a crack initiated at a bolt hole and spread to
either an adjacent bolt hole or to the free edge. Due to design
similarity, Model EH-60A, HH-60L, S-70, S-70A, S-70C, S-70C(M), S-
70C(M1), and UH-60A helicopters are all affected by this unsafe
condition.
    Accordingly, the NPRM proposed to require initial and recurring
inspections of the M/R blade spindle cuff for a crack. The proposed
requirements were intended to detect a crack, prevent failure of an M/R
blade spindle cuff, loss of an M/R blade, and loss of control of the
helicopter.

Comments

    The FAA gave the public the opportunity to participate in
developing this final rule, but the FAA did not receive any comments on
the NPRM or on the determination of the cost to the public.

FAA's Determination

    The FAA is issuing this AD after evaluating all known relevant
information and determining that an unsafe condition exists and is
likely to exist or develop on other helicopters of these same type
designs and that air safety and the public interest require adopting
the AD requirements as proposed.

Related Service Information

    The FAA reviewed SSA-S70-08-002. This service information
recommends, for helicopters with M/R blades overhauled by non-Sikorsky
M/R blade repair facilities, contacting the facilities to verify
whether the hole edge radius requirement was met during cuff
replacement. The safety advisory also recommends operators conduct 10
hour/14 day visual inspections and follow the inspection procedures
regarding sudden onset of low frequency vibration or an out of track
condition.
    The FAA also reviewed Sikorsky Technical Manual Preventative
Maintenance Services 10 Hour/14 Day (30 Hour/42 Day) Inspection
Checklist TM 1-70-PMS-1, dated December 1, 2014, for Sikorsky Model S-
70 helicopters. This service information contains procedures for the 10
hour/14 day and 30 hour/42 day inspections.

Costs of Compliance

    The FAA estimates that this AD affects 204 helicopters of U.S.
Registry. The FAA estimates that operators may incur the following
costs in order to comply with this AD. Labor costs are estimated at $85
per work-hour.
    Inspecting the M/R blade spindle cuffs takes about 1 work-hour for
an estimated cost of $85 per helicopter and $17,340 for the U.S. fleet.
Replacing an M/R blade spindle cuff takes about 175 work-hours and
required parts cost about $10,000 for a total estimated replacement
cost of $24,875 per M/R blade spindle cuff.

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 helicopters identified in this rulemaking action.

Regulatory Findings

    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.

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2020-22-19 Various Restricted Category Helicopters: Amendment 39-
21315; Docket No. FAA-2020-0625; Product Identifier 2016-SW-007-AD.

(a) Applicability

    This airworthiness directive (AD) applies to various restricted
category helicopters originally manufactured by Sikorsky Aircraft
Corporation, Model EH-60A, HH-60L, S-70, S-70A, S-70C, S-70C(M), S-
70C(M1), and UH-60A helicopters with a main rotor (M/R) blade
spindle cuff part number 70150-09109-041 installed; type certificate
holders include but are not limited to ACE Aeronautics, LLC; BHI H60
Helicopters, LLC; Billings Flying Service Inc.; Carson Helicopters;
Delta Enterprise; High Performance Helicopters Corp.; Northwest
Rotorcraft LLC; Pickering Aviation, Inc.; PJ Helicopters Inc.;
Sikorsky Aircraft Corporation; SixtyHawk TC, LLC; Skydance Blackhawk
Operations, LLC; Timberline Helicopters, Inc.; and Unical Aviation,
Inc.

(b) Unsafe Condition

    This AD defines the unsafe condition as a crack in an M/R blade
spindle cuff. This condition could result in failure of an M/R blade
spindle cuff, loss of an M/R blade, and loss of control of the
helicopter.

(c) Effective Date

    This AD becomes effective December 3, 2020.

(d) Compliance

    You are responsible for performing each action required by this
AD within the specified compliance time unless it has already been
accomplished prior to that time.

(e) Required Actions

    Before further flight, unless already done within the last 10
hours time-in-service (TIS), and thereafter at intervals not to
exceed 10 hours TIS from the last inspection:
    (1) Using 10X or higher power magnification, visually inspect
each M/R blade spindle cuff for a crack. Pay particular attention to
the area around each bolt hole and the upper and lower surfaces of
the leading and trailing edges of each M/R blade spindle cuff.
    (2) If there is a crack, replace the M/R blade spindle cuff
before further flight.

(f) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Boston ACO Branch, FAA, may approve AMOCs for
this AD. Send your proposal to: Kristopher Greer, Aerospace
Engineer, Boston ACO Branch, Compliance and Airworthiness Division,
FAA, 1200 District Avenue, Burlington, Massachusetts 01803;
telephone<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, the FAA suggests
that you notify your principal inspector, or lacking a principal
inspector, the manager of the local flight standards district office
or certificate holding district office before operating any aircraft
complying with this AD through an AMOC.

(g) Additional Information

    Sikorsky Safety Advisory No. SSA-S70-08-002, dated December 11,
2008, and Sikorsky Technical Manual Preventative Maintenance
Services 10 Hour/14 Day (30 Hour/42 Day) Inspection Checklist 1-70-
PMS-1, dated December 1, 2014, which are not incorporated by
reference, contain additional information about the subject of this
AD. For service information identified in this AD, contact your
local Sikorsky Field Representative or Sikorsky's Service
Engineering Group at Sikorsky Aircraft Corporation, 124 Quarry Road,
Trumbull, CT 06611; telephone 1-800-946-4337 (1-800-Winged-S); email
<EMAIL_ADDRESS>Operators may also log on to
the Sikorsky 360 website at https://www.sikorsky360.com. You may
view a copy of the service information at the FAA, Office of the
Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-
321, Fort Worth, TX 76177.
    Joint Aircraft Service Component (JASC) Code: 6220, Main Rotor
Head--Main Rotor Spindle Cuff.

    Issued on October 23, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2020-23929 Filed 10-28-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: May 18, 2010 (Volume 75, Number 95)]
[Proposed Rules]
[Page 27670-27672]
[DOCID:fr18my10-15]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2010-0386; Airspace Docket No. 10-AWA-1]
RIN 2120-AA66

Proposed Revocation of Class C Airspace, Proposed Establishment
of Class D Airspace, and Proposed Modification of Class E Airspace;
Columbus, GA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to revoke the Columbus, GA, Class C
airspace area; establish Class D airspace area to replace the Class C
airspace area; and amend the existing Class E surface area and 700-foot
Class E airspace at Columbus, GA. The FAA is proposing this action
because Columbus Metropolitan Airport no longer meets the criteria
required to qualify for a Class C airspace designation. Reconfiguring
the area would enhance safety and facilitate more efficient use of
airspace within the National Airspace System.

DATES: Comments must be received on or before July 19, 2010.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, M-30, 1200 New Jersey Avenue, SE.,
West Building Ground Floor, Room W12-140, Washington, DC 20590-0001;
telephone:<PHONE_NUMBER>. You must identify FAA Docket No. FAA-2010-
0386 and Airspace Docket No. 10-AWA-1, at the beginning of your
comments. You may also submit comments through the Internet at http://
www.regulations.gov

FOR FURTHER INFORMATION CONTACT: Paul Gallant, Airspace and Rules
Group, Office of System Operations Airspace and AIM, Federal Aviation
Administration, 800 Independence Avenue, SW., Washington, DC 20591;
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA-2010-0386 and Airspace Docket No. 10-AWA-1) and be submitted in
triplicate to the Docket Management Facility (see ADDRESSES section for
address and phone number). You may also submit comments through the
Internet at http://www.regulations.gov
    Commenters wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed,
stamped postcard on which the following statement is made: ``Comments
to Docket Nos. FAA-2010-0386 and Airspace Docket No. 10-AWA-1.'' The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified closing date
for comments will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the closing date
for comments. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at http://
www.faa.gov/regulations_policies/rulemaking/recently_published/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see ADDRESSES section for address and phone number) between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. An
informal docket may also be examined during normal business hours at
the office of the Eastern Service Center, Federal Aviation
Administration, Room 210, 1701 Columbia Ave., College Park, GA 30337.
    Persons interested in being placed on a mailing list for future
NPRMs should contact the FAA's Office of Rulemaking,<PHONE_NUMBER>,
for a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

Background

    Class C airspace areas are designed to improve air safety by
reducing the risk of midair collisions in high volume airport terminal
areas and enhance the management of air traffic operations in that
area. In order for an airport to be considered for designation of Class
C airspace, it must meet the following criteria:
    1. The airport must be served by an operational airport traffic
control tower (ATCT) and a radar approach control; and
    2. One of the following applies:
    (a) An annual instrument operations count of 75,000 at the primary
airport; or
    (b) An annual count of 250,000 enplaned passengers at the primary
airport.
    Both instrument operations and passenger enplanements at Columbus
Metropolitan Airport have declined significantly in recent years.
Passenger enplanement figures for calendar year 2008 (the most recent
validated figures available) totaled 51,288. Instrument operations for
calendar year 2008 were 22,795. These totals are significantly below
the above stated thresholds for Class C airspace designation.
    On February 3, 2010, an informal airspace meeting was held at the
Columbus Metropolitan Airport to describe the proposed airspace changes
and to seek facts and information regarding the proposal. Approximately
24 persons attended the meeting. No objections to the proposal were
expressed at the meeting.

The Proposal

    The FAA is proposing an amendment to Title 14, Code of Federal
Regulations (14 CFR) part 71 to remove the Columbus Metropolitan
Airport Class C airspace area. The FAA is further proposing to
establish a Class D airspace area to replace the Class C airspace area.
The proposed Class D airspace area would be designated as part-time and
would be in effect during the Columbus ATCT hours of operation as
published in the Airport/Facility Directory. During periods when the
ATCT is closed, the Class D airspace area would revert to a Class E
surface area as is currently the case at the airport. This action would
also change the dimensions of the existing Class E surface area by
reducing the radius of the area from a 5-nautical mile (NM) radius to a
4.4-NM radius to match the dimensions of the new Class D airspace area.
In addition, this action would amend part of the description of the
existing Columbus, GA, Class E airspace that extends upward from 700-
feet above the surface by changing the radius of the area around the
Columbus Metropolitan Airport from the current 10-NM radius to a 6.8-NM
radius.
    Class C airspace areas, Class D airspace areas, Class E surface
areas and Class E airspace, extending upward from 700-feet above the
surface, are published in paragraphs 4000, 5000, 6002, and 6005,
respectively, of FAA Order 7400.9T, dated August 27, 2009 and effective
September 15, 2009, which is incorporated by reference in 14 CFR 71.1.
The Class C, D and E airspace area amendments proposed in this document
would be published subsequently in the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this proposed regulation: (1) Is not a ``significant
regulatory action'' under Executive Order 12866; (2) is not a
``significant rule'' under Department of Transportation (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
will only affect air traffic procedures and air navigation, it is
certified that this proposed rule, when promulgated, will 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 amends terminal airspace as required to preserve the safe and
efficient flow of air traffic in the Columbus, GA area.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 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

    1. The authority citation for 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]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal
Aviation Administration Order 7400.9T, Airspace Designations and
Reporting Points, dated August 27, 2009, and effective September 15,
2009, is amended as follows:

Paragraph 4000 Subpart C--Class C Airspace.

* * * * *

ASO GA C Columbus Metropolitan Airport, GA [Removed]

* * * * *

Paragraph 5000 Class D Airspace.

* * * * *

ASO GA D Columbus, GA [New]

Columbus Metropolitan Airport, GA
    (Lat. 32[deg]30'59'' N., long. 84[deg]56'20'' W.)

    That airspace extending upward from the surface to and including
2,900 feet MSL within a 4.4-mile radius of the Columbus Metropolitan
Airport; and that airspace within 1 mile each side of the 234[deg]
bearing from the airport extending from the 4.4-mile radius to 5
miles south of the airport. This Class D airspace is effective
during the specific days and times established in advance by a
Notice to Airmen. The effective date and time will thereafter be
continuously published in the Airport/Facility Directory.
* * * * *

Paragraph 6002 Class E Airspace Designated as Surface Areas.

* * * * *

ASO-GA E2 Columbus Metropolitan Airport, GA [Amended]

Columbus Metropolitan Airport
    (Lat. 32[deg]30'59'' N., long. 84[deg]56'20'' W.)

    Within a 4.4-mile radius of Columbus Metropolitan Airport; and
that airspace within 1 mile each side of the 234[deg] bearing from
the airport, extending from the 4.4-mile radius to 5 miles south of
the airport. This Class E airspace area is effective during the
specific dates and times established in advance by a Notice to
Airmen. The effective date and time will thereafter be continuously
published in the Airport/Facility Directory.
* * * * *

Paragraph 6005 Class E Airspace Areas Extending Upward from 700
Feet or More Above the Surface of the Earth.

* * * * *

ASO GA E5 Columbus, GA [Amended]

Columbus Metropolitan Airport, GA
    (Lat. 32[deg]30'59'' N., long. 84[deg]56'20'' W.)
Lawson AAF, GA
    (Lat. 32[deg]20'14'' N., long. 84[deg]59'29'' W.)
Lawson VOR/DME
    (Lat. 32[deg]19'57'' N., long. 84[deg]59'36'' W.)
Lawson LOC
    (Lat. 32[deg]20'43'' N., long. 84[deg]59'55'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.8-mile radius of Columbus Metropolitan Airport; and
within 1 mile each side of the 234[deg] bearing from the airport
extending from the 6.8-mile radius to 7.3-miles south of the
airport; and within a 7.6-mile radius of Lawson AAF; and within 2.5
miles each side of Lawson VOR/DME 340[deg] radial extending from the
7.6-mile radius to 15 miles north of the VOR/DME; and within 4 miles
each side of the Lawson LOC 145[deg] course extending from the 7.6-
mile radius to 10.6 miles southeast of Lawson AAF.

    Issued in Washington, DC, on May 7, 2010.
Edith V. Parish,
Manager, Airspace and Rules Group.
[FR Doc. 2010-11851 Filed 5-17-10; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: September 17, 2009 (Volume 74, Number 179)]
[Rules and Regulations]
[Page 47719-47725]
[DOCID:fr17se09-3]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR parts 230, 240 and 260

[Release Nos. 33-9063; 34-60663; 39-2467; File No. S7-02-09]
RIN 3235-AK26

Extension of Temporary Exemptions for Eligible Credit Default
Swaps To Facilitate Operation of Central Counterparties To Clear and
Settle Credit Default Swaps

AGENCY: Securities and Exchange Commission.

ACTION: Interim final temporary rules; extension.

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

SUMMARY: We are adopting amendments to the expiration dates in our
interim final temporary rules that provide exemptions under the
Securities Act of 1933, the Securities Exchange Act of 1934, and the
Trust Indenture Act of 1939 for certain credit default swaps in order
to facilitate the operation of one or more central counterparties for
those credit default swaps. Under the amendments, the expiration dates
of the interim final temporary rules will be extended to November 30,
2010.

DATES: Effective Date: This rule is effective September 17, 2009, and
the expiration dates for the interim final temporary rules and
amendments published January 22, 2009 (74 FR 3967) is extended from
September 25, 2009 to November 30, 2010.

FOR FURTHER INFORMATION CONTACT: Amy M. Starr, Senior Special Counsel,
or Sebastian Gomez Abero, Attorney, Office of Chief Counsel, Division
of Corporation Finance, at<PHONE_NUMBER>, U.S. Securities and Exchange
Commission, 100 F Street, NE., Washington, DC 20549-3628.

SUPPLEMENTARY INFORMATION: We are adopting amendments to the following
rules: interim final temporary Rule 239T and Rule 146 under the
Securities Act of 1933 (``Securities Act''),\1\ interim final temporary
Rule 12a-0T and Rule 12h-1(h)T under the Securities Exchange Act of
1934 (``Exchange Act''),\2\ and interim final temporary Rule 4d-11T
under the Trust Indenture Act of 1939 (``Trust Indenture Act'').\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 77a et seq.
    \2\ 15 U.S.C. 78a et seq.
    \3\ 15 U.S.C. 77aaa et seq.
---------------------------------------------------------------------------

I. Background

    In January 2009, we adopted interim final temporary Rule 239T and a
temporary amendment to Rule 146 under the Securities Act, interim final

temporary Rules 12a-10T and 12h-1(h)T under the Exchange Act, and
interim final temporary Rule 4d-11T under the Trust Indenture Act
(collectively, the ``Interim Final Temporary Rules'').\4\ We adopted
these rules in connection with temporary exemptive orders we issued to
a clearing agency acting as a central counterparty (``CCP''), which
exempted the CCP from the requirement to register as a clearing agency
under Section 17A of the Exchange Act \5\ solely to perform the
functions of a clearing agency for certain credit default swap
(``CDS'') transactions. The exemptive orders also exempted certain
eligible contract participants \6\ and others from certain Exchange Act
requirements with respect to certain CDS.\7\ Also at that time, we
temporarily exempted any exchange that effects transactions in certain
CDS from the requirements under Sections 5 and 6 of the Exchange Act
\8\ to register as a national securities exchange, and any broker or
dealer that effects transactions on an exchange in certain CDS from the
requirements of Section 5 of the Exchange Act.
---------------------------------------------------------------------------

    \4\ See Exchange Act Release No. 59246 (Jan. 14, 2009).
    \5\ 15 U.S.C. 78q-1.
    \6\ See 7 U.S.C. 1a(12).
    \7\ See Exchange Act Release Nos. 59164 and 59165 (Dec. 24,
2008).
    \8\ 15 U.S.C. 78e and 78f.
---------------------------------------------------------------------------

    The Interim Final Temporary Rules, and the temporary exemptive
orders we provided under the Exchange Act, were intended to facilitate
the operation of one or more CCPs that clear and settle CDS
transactions while enabling us to provide oversight to the CDS
market.\9\ Since the adoption of the interim final rules, only one CCP,
ICE U.S. Trust LLC (``ICE Trust''), has been actively engaged as a CCP
in clearing CDS transactions in the U.S. in accordance with our
exemptions.\10\ As of August 28, 2009, ICE Trust had cleared more than
22,800 CDS transactions with a notional value of $1.9 trillion.\11\ We
believe that the clearing of CDS transactions by ICE Trust has
contributed and we anticipate will continue to contribute to increased
transparency \12\ and the reduction of systemic risk in the CDS
market.\13\
---------------------------------------------------------------------------

    \9\ For a discussion of concerns related to the market in CDS,
and the development of the exemptive orders and interim temporary
rules, see Exchange Act Release No. 59246 (Jan. 14, 2009).
    \10\ See Exchange Act Release No. 59527 (Mar. 6, 2009), 74 FR
10791 (Mar. 12, 2009) (temporary exemption for ICE U.S. Trust LLC).
    \11\ See Historical Daily Volume Report--ICE Trust U.S.,
available at https://www.theice.com/marketdata/reports/
ReportCenter.shtml?reportId=26.
    \12\ See Testimony of Mark Lenczowski, Managing Director and
Assistant General Counsel at JPMorgan Chase & Co., to the Senate
Agriculture Committee (June 4, 2009) (In his testimony, Mr.
Lenczowski indicated, in the context of CDS clearing by ICE Trust,
that ``[c]learing is a highly transparent process. * * *'').
    \13\ As of June 30, 2009, ICE Trust had reduced the notional
amount of CDS open interest, or net exposure, from over $1.3
trillion to $168.5 billion by clearing trades and netting positions.
See, Quarterly Report on Form 10-Q for the quarter ended June 30,
2009 (filed on August 5, 2009). ICE Trust also has a guarantee fund
that provides additional protection in the event of a clearing
participant default. See Exchange Act Release No. 59527, supra Note
10.
---------------------------------------------------------------------------

    We also granted exemptive orders to four other CCPs to clear CDS,
two of which were approved in July 2009.\14\ The Chicago Mercantile
Exchange, to whom we granted an exemptive order in March 2009, has
indicated that it continues to work with buy and sell participants in
the CDS market to promote its CCP.\15\ ICE Clear Europe Limited (``ICE
Europe'') and Eurex Clearing AG (``Eurex'') have begun clearing CDS
transactions in Europe.\16\
---------------------------------------------------------------------------

    \14\ See Exchange Act Release No. 60373 (July 23, 2009)
(temporary exemption for Eurex Clearing AG); Exchange Act Release
No. 60372 (July 23, 2009) (temporary exemption for ICE Clear Europe
Limited); Exchange Act Release No. 59578 (Mar. 13, 2009) (temporary
exemption for Chicago Mercantile Exchange Inc.); and Exchange Act
Release No. 59164 (Dec. 24, 2008) (temporary exemption for LIFFE A&M
and LCH.Clearnet Ltd.). LIFFE A&M and LCH.Clearnet Ltd., to whom we
granted exemptive orders in December 2008, indicated that they will
suspend their plans to clear CDS. See, Alastair Marsh, NYSE Liffe
and LCH.Clearnet close CDS clearing service (Aug. 12, 2009),
available at http://www.risk.net/public/showPage.html?page=867491.
    \15\ See Christine Birkner, CDS Clearing Battle (Buy Side vs.
Sell Side), Futures (July 1, 2009) (``A spokesperson for CME Group
says, `We continue to work with buy and sell participants to
demonstrate the value of our offering.' '').
    \16\ See Press Release, IntercontinentalExchange, ICE Clear
Europe Clears Euro 51 Billion in Third Week of European CDS
Processing; Announces New CDS Clearing Member (Aug. 17, 2009),
available at http://ir.theice.com/
releasedetail.cfm?ReleaseID=403509. See also, Press Release, Eurex
Clearing AG, Eurex Credit Clear Clears First Single Name CDS
Worldwide (Aug. 28, 2009), available at http://
www.eurexclearing.com/about/press/press_647_en.html.
---------------------------------------------------------------------------

    Since the adoption of the Interim Final Temporary Rules, a number
of legislative initiatives relating to the regulation of derivatives,
including CDS, have been introduced by members of Congress and
recommended by the United States Department of the Treasury
(``Treasury'').\17\ Congress has not yet taken definitive action with
respect to any of the legislative initiatives or the Treasury
proposals. Separately, in July 2009, the Committee on Payment and
Settlement Systems (``CPSS'') and the Technical Committee of the
International Organization of Securities Commissions (``IOSCO'')
established a working group to review the application of the CPSS-IOSCO
Recommendations for Central Counterparties (``Recommendations'') with
respect to OTC derivatives.\18\ The Recommendations set out standards
for risk management of CCPs. The working group plans to identify key
issues that can arise when a CCP provides central clearing services for
OTC derivatives transactions.\19\
---------------------------------------------------------------------------

    \17\ See, e.g., Derivatives Trading Integrity Act of 2009 (S.
272) (introduced by Senator Tom Harkin in January 2009); The
Derivatives Markets Transparency and Accountability Act (H.R. 977)
(introduced by Representative Collin Peterson in February 2009);
Authorizing the Regulation of Swaps Act (S. 961) (introduced by
Senator Carl Levin and Senator Susan Collins in May 2009);
Treasury's framework for regulatory reform (released in June 2009);
Derivative Trading Accountability and Disclosure Act (H.R. 3300)
(introduced by Representative Michael McMahon in July 2009);
Description of Principles for OTC Derivatives Legislation (announced
by Representative Barney Frank and Representative Collin Peterson in
July 2009); Senator Charles Schumer's announcement that he is
drafting a bill establishing central trade repositories for OTC
derivatives markets (August 2009); and Over-the-Counter Derivatives
Markets Act of 2009 (prepared by Treasury and sent to Congress in
August 2009).
    \18\ See Press Release, Bank for International Settlements,
CPSS-IOSCO working group on the review of the ``Recommendations for
Central Counterparties'' (July 20, 2009), available at http: //
www.bis.org/press/p090720.htm.
    \19\ ``Where necessary, the working group will propose guidance
on how CCPs for OTC derivatives may meet the standards set out by
the recommendations and will identify any areas in which the
recommendations might be strengthened or expanded to better address
risks associated with the central clearing of OTC derivatives.
Participants in the working group include representatives of the
central banks that are members of the CPSS, representatives of the
securities regulators that are members of the IOSCO Technical
Committee, and representatives of the International Monetary Fund
and the World Bank.'' Id.
---------------------------------------------------------------------------

    At the time of adoption of the Interim Final Temporary Rules, we
requested comment on various aspects of the rule provisions. We
received a total of 15 letters, only two of which commented
specifically on the interim temporary final rules. Those two letters
generally supported allowing CCPs to clear and settle CDS transactions
in accordance with the terms of the Interim Final Temporary Rules; but
neither of the commenters specifically addressed the duration of the
Interim Final Temporary Rules and temporary amendments.\20\ The other
commenters raised issues not directly related to this rulemaking.\21\
---------------------------------------------------------------------------

    \20\ See letters from the Yale Law School Capital Markets and
Financial Instruments Clinic (March 23, 2009) and from IDX Capital
(March 23, 2009).
    \21\ The public comments we received are available for
inspection in the Commission's Public Reference Room at 100 F St.,
NE., Washington, DC 20549 in File No. S7-02-09. They are also
available online at http://www.sec.gov/comments/s7-02-09/
s70209.shtml.

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

    The Interim Final Temporary Rules expire on September 25, 2009. We
have determined that it is necessary and appropriate to extend the
expiration date of the Interim Final Temporary Rules to November 30,
2010.\22\
---------------------------------------------------------------------------

    \22\ See Section III, infra, for a discussion of why the
extension of time is necessary.
---------------------------------------------------------------------------

II. Discussion of the Final Temporary Rules

    We are adopting amendments to the Interim Final Temporary Rules to
extend the expiration date of each of the rules to November 30, 2010.
We are not making any other changes to the Interim Final Temporary
Rules.

A. Securities Act Rule 239T and Rule 146

    Securities Act Rule 239T exempts from all provisions of the
Securities Act, except the anti-fraud provisions of Section 17(a),
certain CDS (``eligible CDS'') \23\ that are offered and sold only to
``eligible contract participants,'' \24\ and that are being or will be
issued or cleared by a CCP satisfying the conditions set forth in the
CCP exemptions, or registered as a clearing agency under Section 17A of
the Exchange Act (``Registered or Exempt CCP''). Hence, under
Securities Act Rule 239T, the offer and sale of eligible CDS are exempt
from the registration requirements of the Securities Act if the
eligible CDS is or will be issued or cleared by a Registered or Exempt
CCP, and offered and sold only to an eligible contract participant.
Communications used in connection with such offers and sales are not
subject to Section 12(a)(2) liability under the Securities Act.
Securities Act Rule 239T assures the availability of information to
buyers and sellers of CDS due to certain information conditions in the
CCP exemptive orders.\25\
---------------------------------------------------------------------------

    \23\ See 17 CFR 230.239T(d).
    \24\ For purposes of Securities Act Rule 239T, ``eligible
contract participant'' has the same meaning as in Section 1a(12) of
the Commodity Exchange Act (the ``CEA''), as in effect on the date
of adoption of Rule 239T, except that the term does not include a
person who is an ``eligible contract participant'' pursuant to
Section 1a(12)(C) of the CEA. 17 CFR 230.239T(a)(2).
    \25\ We note that among the conditions of the exemptions, or
representations in the exemptive requests on which we are relying,
from clearing registration are that: (1) Information is available
about the terms of the CDS, the creditworthiness of the CCP or any
guarantor, and the clearing and settlement process for the CDS; and
(2) the reference entity, the issuer of the reference security, or
the reference security is one of the following: an entity reporting
under the Exchange Act, providing Securities Act Rule 144A(d)(4)
information, or about which financial information is otherwise
publicly available; a foreign private issuer that has securities
listed outside the United States and has its principal trading
market outside the United States; a foreign sovereign debt security;
an asset-backed security, as defined in Regulation AB [17 CFR
229.1100], issued in a registered transaction with publicly
available distribution reports; an asset-backed security issued or
guaranteed by Fannie Mae, Freddie Mac or the Government National
Mortgage Association; or indexes in which 80 percent or more of the
index's weight is comprised of these reference entities or reference
securities. See, e.g., Exchange Act Release No. 59527, supra Note
10.
---------------------------------------------------------------------------

    As we noted in January 2009, absent this exemption, the Securities
Act may require registration of the offer and sale of eligible CDS that
are or will be issued or cleared by a Registered or Exempt CCP. Without
also exempting the offers and sales of the eligible CDS by a Registered
or Exempt CCP from the registration requirements of the Securities Act
and the Exchange Act and the provisions of the Trust Indenture Act, we
believe that the CCPs would not be able to operate in the manner
contemplated by the Exchange Act exemptive orders. In addition, the
Securities Act, Exchange Act and Trust Indenture Act exemptions are
intended to encourage market participants to clear their CDS through
the CCPs.
    Securities Act Rule 239T also provides that any offer or sale of an
eligible CDS that is or will be issued or cleared by a Registered or
Exempt CCP by or on behalf of the issuer of a security, an affiliate of
such issuer, or an underwriter, if such security is delivered in
settlement or whose value is used to determine the amount of the
settlement obligation, will constitute a ``contract for sale of,''
``sale of,'' ``offer for sale,'' or ``offer to sell'' such security
under Section 2(a)(3) of the Securities Act.\26\ This provision is
intended to ensure that an eligible CDS that is or will be issued or
cleared by a Registered or Exempt CCP cannot be used by an issuer,
affiliate of an issuer or underwriter to circumvent the registration
requirements of Section 5 with respect to an issuer's security for such
eligible CDS.\27\ As a result, a transaction by such persons in an
eligible CDS that is or will be issued or cleared by a Registered or
Exempt CCP having such securities of the issuer also is a transaction
in the issuer's securities that must be registered under the Securities
Act, unless an exemption from registration is available.
---------------------------------------------------------------------------

    \26\ 17 CRF 230.239T(c).
    \27\ This provision is similar to the condition in the
Securities Act exemption in Rule 238 for standardized options [17
CFR 230.238] and in Securities Act Section 2(a)(3) [15 U.S.C.
77b(a)(3)] relating to security futures products.
---------------------------------------------------------------------------

    We also adopted on an interim final temporary basis an amendment to
Securities Act Rule 146. Under the temporary amendment to Rule 146,
eligible contract participants that are sold eligible CDS in reliance
on interim final temporary Securities Act Rule 239T are defined as
``qualified purchasers'' under Section 18(b)(3) of the Securities Act
and thereby such eligible CDS that are or will be issued or cleared by
a Registered or Exempt CCP are considered ``covered securities'' under
Section 18 of the Securities Act and exempt from state blue sky
laws.\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 230.146(c)T. State securities regulation of covered
securities generally is limited under Section 18(b). Under Section
18(b)(3), covered securities are securities offered and sold to
qualified purchasers, as defined by the Commission.
---------------------------------------------------------------------------

B. Exchange Act Rule 12a-10T and Rule 12h-1(h)T

    In January 2009, we also adopted two Interim Final Temporary Rules
relating to Exchange Act registration of eligible CDS that are or have
been issued or cleared by a Registered or Exempt CCP. Exchange Act Rule
12a-10T exempts eligible CDS that are or have been issued or cleared by
a Registered or Exempt CCP from the provisions of Section 12(a) of the
Exchange Act under certain conditions.\29\ Exchange Act Rule 12h-1(h)T
exempts eligible CDS that are or have been issued or cleared by a
Registered or Exempt CCP from the provisions of Section 12(g) of the
Exchange Act under certain conditions.\30\
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78l(a).
    \30\ 17 CFR 240.12h-1(h)T; 15 U.S.C. 78l(g).
---------------------------------------------------------------------------

C. Trust Indenture Act Rule 4d-11T

    We also adopted a rule under Section 304(d) of the Trust Indenture
Act that exempts any eligible CDS, as defined in Securities Act Rule
239T and offered and sold in reliance on Securities Act Rule 239T, from
having to comply with the provisions of the Trust Indenture Act.\31\
---------------------------------------------------------------------------

    \31\ Rule 4d-11T. The Trust Indenture Act applies to debt
securities sold through the use of the mails or interstate commerce.
Section 304 of the Trust Indenture Act exempts from the Act a number
of securities and transactions. Section 304(a) of the Trust
Indenture Act exempts securities that are exempt under Securities
Act Section 3(a), but does not exempt from the Trust Indenture Act
securities that are exempt by Commission rule. Accordingly, while
Securities Act Rule 239T exempts the offer and sale of eligible CDS
satisfying certain conditions from all the provisions of the
Securities Act (other than Section 17(a)), the Trust Indenture Act
would continue to apply.
---------------------------------------------------------------------------

III. Amendment of Expiration Date of Interim Final Temporary Rules

    In January 2009, we adopted the interim final rules on a temporary
basis until September 25, 2009 because we anticipated that this date
would provide us with adequate time to evaluate the availability of the
exemptions applicable to CDS CCPs and non-excluded CDS, and whether any
conditions or provisions of such

exemptions should be modified. At the time we adopted the Interim Final
Temporary Rules, we indicated that we could act to extend the
expiration date of such rules.\32\
---------------------------------------------------------------------------

    \32\ See Section III of Exchange Act Release No. 59246 (Jan. 14,
2009).
---------------------------------------------------------------------------

    We have now determined that it is necessary to extend the
expiration date of the Interim Final Temporary Rules for the following
reasons. First, we adopted the interim final rules to foster the
development of CCPs by providing exemptions from certain regulatory
provisions that might otherwise prevent them from engaging in such
activities in the manner contemplated by the exemptive orders. To date,
there has been only one CCP (ICE Trust) that has begun to clear and
settle CDS transactions in the U.S. and two CCPs (ICE Europe and Eurex)
that have begun to clear and settle CDS transactions in Europe.
Extending the expiration date of our Interim Final Temporary Rules
would not only allow ICE Trust, ICE Europe and Eurex to continue to
clear and settle CDS transactions, it would also enable other CCPs to
start clearing and settling CDS transactions in the manner contemplated
by the exemptive orders. Competition among CCPs clearing CDS
transactions could give participants more choice for their trading
needs and may reduce clearing fees.\33\ In addition, the extension
would give us more time to evaluate the rule and assess its effect on
the CDS market and the market participants. As reflected in the CPSS-
IOSCO Recommendations, our fellow regulators around the world are also
thinking about how to address the risks associated with the central
clearing of OTC derivatives, and this remains an open and current topic
of discussion for all securities regulators. Finally, Treasury has
delivered financial regulatory reform proposals to Congress, and
several bills to regulate derivatives and the derivatives markets have
been introduced in Congress.
---------------------------------------------------------------------------

    \33\ See Harrington and Leising, supra note 15 (quoting Theo
Lubke, an official with the Federal Reserve Bank of New York
responsible for the central bank's efforts to curb risk in the CDS
market, as stating that ``A competitive [CCP clearing] environment,
at least in the short run, is beneficial. We don't want the first
mover to be the winner just because they're the first mover. We
would like to see real choice in the market for a period of time to
determine which is the better mousetrap.''). See also, Financial
Services: Cost of Trading Going Down, Survey Finds, Europolitics
(July 17, 2009) (citing European Commissioner Charlie McCreevy, ``I
particularly welcome the [European Commission] study's findings
concerning the decreases in costs for trading and clearing and to
some extent also for settlement services since 2006. This confirms
the positive impact on competition of the Markets in Financial
Instruments Directive and the code of conduct on clearing and
settlement.'').
---------------------------------------------------------------------------

    Absent an exemption, the offer and sale of eligible CDS that are or
will be issued or cleared by a Registered or Exempt CCP may have to be
registered under the Securities Act, the eligible CDS that have been so
issued or cleared may have to be registered as a class under the
Exchange Act, and the provisions of the Trust Indenture Act may need to
be complied with. We believe that the Interim Final Temporary Rules
have facilitated and anticipate that they will continue to facilitate
the use by eligible contract participants of CDS CCPs. Absent an
extension of the expiration date of the interim final rules, we believe
that the CCPs would not be able to operate in the manner contemplated
by the exemptive orders. We note that the expiration dates of certain
of these exemptive orders currently extend until April 23, 2010. We
are, therefore, adopting amendments to each of the interim final rules
to extend the expiration date of the rules to November 30, 2010.
Extending the expiration dates for this length of time will allow us to
continue to monitor the development and operation of CCPs in the CDS
market under the current, evolving regulatory and legislative
environment.

IV. Certain Administrative Law Matters

    Section 553(b) of the Administrative Procedure Act (``APA'') \34\
generally requires an agency to publish notice of a proposed rule
making in the Federal Register. This requirement does not apply,
however, if the agency ``for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \35\ The Commission
finds good cause to act immediately to extend the expiration date of
the Interim Final Temporary Rules. When we adopted the rules in January
of this year, we sought sufficient time to evaluate the appropriateness
of the exemptions and the role of CCPs in the CDS market. Since that
time, we have granted orders to four additional CDS CCPs exempting them
from the requirement to register as a clearing agency under Section 17A
of the Exchange Act. Two of these orders were granted as recently as
July 2009, and one CCP has started to clear CDS transactions in the
U.S. and two have begun clearing CDS in Europe. In addition, there have
been a number of recent and still developing legislative and regulatory
initiatives relating to the regulation of derivatives, including CDS.
Finally, we note that commenters had an opportunity to comment on the
length of the temporary rules in January of this year and that this
extension is of a limited duration. Therefore, we believe there is good
cause to extend the exemption until November 30, 2010 and find that
notice and solicitation of comment on the extension to be
impracticable, unnecessary, or contrary to the public interest.\36\
---------------------------------------------------------------------------

    \34\ 5 U.S.C. 553(b).
    \35\ 5 U.S.C. 553(b)(B).
    \36\ This finding also satisfies the requirements of 5 U.S.C.
808(2), allowing the rule amendment to become effective
notwithstanding the requirement of 5 U.S.C. 801 (if a Federal agency
finds that notice and public comment are ``impractical, unnecessary
or contrary to the public interest,'' a rule ``shall take effect at
such time as the Federal agency promulgating the rule determines'').
---------------------------------------------------------------------------

    The APA also generally requires that an agency publish an adopted
rule in the Federal Register 30 days before it becomes effective.\37\
However, this requirement does not apply if the agency finds good cause
not to delay the effective date.\38\ For similar reasons to those
explained above, the Commission finds good cause not to delay the
effective date.
---------------------------------------------------------------------------

    \37\ 5 U.S.C. 553(d).
    \38\ 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------

V. Paperwork Reduction Act

    The Interim Final Temporary Rules do not impose any new
``collections of information'' within the meaning of the Paperwork
Reduction Act of 1995 (``PRA''),\39\ nor do they create any new filing,
reporting, recordkeeping, or disclosure reporting requirements for a
CCP that is or will be issuing or clearing eligible CDS. Accordingly,
we did not submit the Interim Final Temporary Rules to the Office of
Management and Budget for review in accordance with the PRA.\40\ We
requested comment on whether our conclusion that there are no
collections of information is correct, and we did not receive any
comment. The extension of the expiration dates does not change our
analysis.
---------------------------------------------------------------------------

    \39\ 44 U.S.C. 3501 et seq.
    \40\ 44 U.S.C. 3507(d) and 5 CFR 1320.11.
---------------------------------------------------------------------------

VI. Cost-Benefit Analysis

    In January 2009, we adopted the Interim Final Temporary Rules under
the Securities Act, the Exchange Act and the Trust Indenture Act that
exempt eligible CDS that are or will be issued or cleared by a
Registered or Exempt CCP and offered and sold only to eligible contract
participants from all provisions of the Securities Act, other than the
Section 17(a) anti-fraud provision, as well as from the registration
requirements under Section

12 of the Exchange Act and from the provisions of the Trust Indenture
Act. The Interim Final Temporary Rules were intended to facilitate the
operation of one or more CCPs to act as a clearing agency in the CDS
market to reduce some of the risks in the CDS market. Today, we are
adopting amendments to such rules to extend their expiration date to
November 30, 2010.
    Since the adoption of the Interim Final Temporary Rules, one CCP
(ICE Trust) has been actively engaged as a CCP in clearing CDS
transactions in the U.S. in accordance with terms of the exemptive
orders, and two other CCPs (ICE Europe and Eurex) have begun clearing
CDS transactions in Europe. In addition, a number of legislative
initiatives relating to the regulation of derivatives, including CDS,
have been introduced by members of Congress and recommended by the
United States Department of the Treasury.\41\ Extending the expiration
dates of the Interim Final Temporary Rules for this length of time will
allow us to continue to monitor the development and operation of CCPs
in the CDS market under the current, evolving regulatory and
legislative environment.
---------------------------------------------------------------------------

    \41\ See Section I, supra, for additional discussion of
developments in this area since the adoption of the Interim Final
Temporary Rules.
---------------------------------------------------------------------------

    A CDS is a bilateral contract between two parties, known as
counterparties. The value of this financial contract is based on
underlying obligations of a single entity, or on a particular security
or other debt obligation, or an index of several such entities,
securities, or obligations. The obligation of a seller to make payment
under a CDS contract is triggered by a default or other credit event as
to such entity or entities or such security or securities. Investors
may use CDS for a variety of reasons, including to offset or insure
against risk in their fixed-income portfolios, to take synthetic
positions in bonds or in segments of the debt market as represented by
an index, or to capitalize on the volatility in credit spreads during
times of economic uncertainty. In recent years, CDS market volumes have
rapidly increased.\42\ This growth has coincided with a significant
rise in the types and number of entities participating in the CDS
market.\43\
---------------------------------------------------------------------------

    \42\ See Semiannual OTC derivatives statistics at end-December
2008, Bank for International Settlements (``BIS''), available at
http://www.bis.org/statistics/otcder/dt1920a.pdf.
    \43\ CDSs were initially created to meet the demand of banking
institutions looking to hedge and diversify the credit risk
attendant with their lending activities. However, other financial
institutions such as insurance companies, pension funds, securities
firms and hedge funds have entered the CDS market.
---------------------------------------------------------------------------

    In a CCP arrangement, both parties entering a CDS novate their
trades to the CCP, and the CCP stands in as the counterparty to all
parties of the CDS it clears. Through this novation process, the
counterparty risk of a CDS is effectively concentrated in the CCP.

A. Benefits

    We are extending the termination date of the Interim Final
Temporary Rules that provide exemptions from certain provisions of the
Securities Act, the Exchange Act and the Trust Indenture Act, subject
to certain conditions described in the CCP exemptive orders and in the
exemptions themselves to further facilitate the operation of CCPs in
the CDS market. The conditions and representations in the CCP exemptive
orders and exemptions require that information be available about the
terms of the CDS, the creditworthiness of the CCP or any guarantor, and
the clearing and settlement process for the CDS. Additionally, the
conditions require that financial information about the reference
entity, the issuer of the reference security, or the reference security
be publicly available. We believe that the Interim Final Temporary
Rules and the exemptions under the Exchange Act, have facilitated and
we anticipate will continue to facilitate the operation of CCPs \44\
while enabling us to provide oversight to the non-excluded CDS
market.\45\ We believe that the operation of at least one CCP over the
last six months in accordance with our exemptions has increased
transparency,\46\ increased available information about exposures to
particular reference entities or reference securities,\47\ and reduced
risks to participants in the market for CCP-cleared CDS.\48\ Not
extending the termination date could cause significant disruptions in
this market. Therefore, we believe this extension provides important
benefits.
---------------------------------------------------------------------------

    \44\ See Karen Brettell, Banks to submit 95 pct of eligible CDS
for clearing (Sep. 1, 2009), available at http://www.reuters.com/
article/euRegulatoryNews/
idUSN0150814420090901?pageNumber=1&virtualBrandChannel=10522.
    \45\ See e.g., Exchange Act Release No. 59527, supra Note 10
(our exemptions require that the CCPs provide us with, among other
things, access to conduct on-site inspections of facilities, records
and personnel).
    \46\ See Testimony of Mark Lenczowski, supra Note 12.
    \47\ See e.g., Exchange Act Release No. 59527, supra Note 26.
    \48\ See IntercontinentalExchange, supra Note 13.
---------------------------------------------------------------------------

    Absent an exemption, the offer and sale of eligible CDS that are
and will be issued or cleared by a Registered or Exempt CCP would have
to be registered under the Securities Act, the eligible CDS that are or
have been issued or cleared by a Registered or Exempt CCP would have to
be registered as a class under the Exchange Act, and the provisions of
the Trust Indenture Act would apply. We believe that the Interim Final
Temporary Rules exempting the registration of eligible CDS issued or
cleared by a Registered or Exempt CCP under certain conditions have
facilitated and we anticipate will continue to facilitate the use by
eligible contract participants of CDS CCPs. Without also exempting the
offers and sales of eligible CDS issued or cleared by a Registered or
Exempt CCP from the registration requirements of the Securities Act and
the Exchange Act and the provisions of the Trust Indenture Act, we
believe that the CCPs would not be able to operate in the manner
contemplated by the exemptive orders.
    The interim final temporary exemptions treat eligible CDS issued or
cleared by a Registered or Exempt CCP under the Securities Act and the
Exchange Act in the same manner as certain other types of derivative
contracts, such as security futures products and standardized
options.\49\ A Registered or Exempt CCP issuing or clearing eligible
CDS benefits from the temporary exemptions because it does not have to
file registration statements with us covering the offer and sale of the
eligible CDS. The registration form most applicable to a CCP is a Form
S-20, which is the form that is used by options clearing houses that do
not qualify for our exemption in Securities Act Rule 238 \50\ from
registering the offer and sale of standardized options. If a CCP is not
required to register the offer and sale of eligible CDS (on Form S-20,
for example), it would not have to incur the costs of such
registration, including legal and accounting costs. Some of these
costs, of course, such as the costs of obtaining audited financial
statements, may still be incurred as a result of the operations of the
entity as a CCP and the regulatory oversight of the central
counterparty operations. In addition, if any of the CCPs are entities
that are subject to the periodic reporting requirements of the Exchange
Act, the cost of filing a registration statement covering the eligible
CDS would be lessened further as the information regarding the CCP
already would be prepared. The availability of exemptions under the
Securities Act, the Exchange

Act, and the Trust Indenture Act also would mean that CCPs would not
incur the costs of preparing disclosure documents describing eligible
CDS and from preparing indentures and arranging for the services of a
trustee.
---------------------------------------------------------------------------

    \49\ See, e.g., Securities Act Section 3(a)(14) [15 U.S.C.
77c(a)(14)], Securities Act Rule 238 [17 CFR 230.238]; Exchange Act
Section 12(a) [15 U.S.C. 78l], and Exchange Act Rule 12h-1(d) and
(e) [17 CFR 240.12h-1(d) and (e)].
    \50\ 17 CFR 230.238.
---------------------------------------------------------------------------

B. Costs

    The Interim Final Temporary Rules exempting offers and sales of
eligible CDS that are or will be issued or cleared by a Registered or
Exempt CCP have facilitated and we anticipate will continue to
facilitate the use by eligible contract participants of CDS CCPs that
are the subject of exemptive orders at some costs to the CCP or
investors.
    Absent an exemption, a CCP may have to file a registration
statement covering the offer and sale of the eligible CDS, may have to
satisfy the applicable provisions of the Trust Indenture Act, and may
have to register the class of eligible CDS that it has issued or
cleared under the Exchange Act, which would provide investors with
civil remedies in addition to antifraud remedies. While a CCP
registration statement covering eligible CDS (or the offer and sale of
such eligible CDS) may provide certain information about the CCP, CDS
contract terms, and the identification of reference entities or
reference securities, it would not necessarily provide the type of
information necessary to assess the credit risk of the reference entity
or reference security. Further, while a CCP registration statement
would provide information to the CDS market participants, as well as to
the market as a whole, a condition of the clearing agency exemption in
the exemptive orders is that the CCPs make their audited financial
statements and other information about themselves publicly available.
    We recognize that a consequence of the exemptions has been and will
continue to be the unavailability of certain remedies under the
Securities Act and the Exchange Act and certain protections under the
Trust Indenture Act. While an investor would be able to pursue an
antifraud action in connection with the purchase and sale of eligible
CDS under Exchange Act Section 10(b),\51\ it would not be able to
pursue civil remedies under Sections 11 or 12 of the Securities
Act.\52\ We could still pursue an antifraud action in the offer and
sale of eligible CDS issued or cleared by a CCP.\53\ We believe that
the incremental costs from the extension of the expiration date of the
Interim Final Temporary Rules will be minimal because the amendments
are merely an extension of such Interim Final Temporary Rules and such
extension will not affect the information and remedies available to
investors as a result of the Interim Final Temporary Rules.
---------------------------------------------------------------------------

    \51\ 15 U.S.C. 78j(b).
    \52\ 15 U.S.C. 77k and 77l.
    \53\ See 15 U.S.C. 77q and 15 U.S.C. 78j(b).
---------------------------------------------------------------------------

VII. Consideration of Impact on the Economy, Burden on Competition and
Promotion of Efficiency, Competition and Capital Formation

    Section 23(a)(2) of the Exchange Act \54\ requires us, when
adopting rules under the Exchange Act, to consider the impact that any
new rule would have on competition. Section 23(a)(2) prohibits us from
adopting any rule that would impose a burden on competition not
necessary or appropriate in furtherance of the purposes of the Exchange
Act. In addition, Section 2(b) \55\ of the Securities Act and Section
3(f) \56\ of the Exchange Act require us, when engaging in rulemaking
where we are required to consider or determine whether an action is
necessary or appropriate in the public interest, to also consider
whether the action will promote efficiency, competition, and capital
formation.
---------------------------------------------------------------------------

    \54\ 15 U.S.C. 78w(a)(2).
    \55\ 15 U.S.C. 77b(b).
    \56\ 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    The Interim Final Temporary Rules we are extending today exempt
eligible CDS issued or cleared by a Registered or Exempt CCP from all
provisions of the Securities Act, other than the Section 17(a)
antifraud provision, as well as from the registration requirements
under Section 12 of the Exchange Act and the provisions of the Trust
Indenture Act. Because these interim final temporary exemptions are
available to any Registered or Exempt CCP offering and selling eligible
CDS, we do not believe that the exemptions impose a burden on
competition. Although only one CCP is currently clearing and settling
CDS in the U.S., we believe the extension will increase the opportunity
for other CCPs to compete in the marketplace. We also believe that the
ability to settle CDS through CCPs has improved and we anticipate will
continue to improve the transparency of the CDS market and provide
greater assurance to participants as to the capacity of the eligible
CDS counterparty to perform its obligations under the eligible CDS. ICE
Trust, for example, makes available on its Web site information about
open interests, or net exposure, volume and pricing of CDS
transactions. We believe that increased transparency in the CDS market
could help to decrease further market turmoil and thereby facilitate
the capital formation process.

VIII. Regulatory Flexibility Act Certification

    The Commission certified pursuant to 5 U.S.C. 605(b) that the
Interim Final Temporary Rules would not have a significant economic
impact on a substantial number of small entities. The Interim Final
Temporary Rules exempt eligible CDS that are or will be issued or
cleared by a Registered or Exempt CCP. None of the entities that are
eligible to meet the requirements of the exemption from registration
under Section 17A is a small entity. We received no comments on the
certification.

IX. Statutory Authority and Text of the Rules and Amendments

    The amendments described in this release are being adopted under
the authority set forth in Sections 18, 19 and 28 of the Securities
Act; Sections 12(h), 23(a) and 36 of the Exchange Act; and Section
304(d) of the Trust Indenture Act.

List of Subjects in 17 CFR Parts 230, 240 and 260

    Reporting and recordkeeping requirements, Securities.

Text of the Rules and Amendments

0
Accordingly, we are temporarily amending 17 CFR parts 230, 240, and 260
as follows and the expiration date for the interim final temporary
rules published January 22, 2009 (74 FR 3967) is extended from
September 25, 2009, to November 30, 2010.

PART 230--GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933

0
1. The authority citation for Part 230 continues to read, in part, as
follows:

    Authority:  15 U.S.C. 77b, 77c, 77d, 77f, 77g, 77h, 77j, 77r,
77s, 77z-3, 77sss, 78c, 78d, 78j, 78l, 78m, 78n, 78o, 78t, 78w,
78ll(d), 78mm, 80a-8, 80a-24, 80a-28, 80a-29, 80a-30, and 80a-37,
unless otherwise noted.
* * * * *

Sec. Sec.  230.146 and 230.239   [Amended]

0
2. In Sec.  230.146(c)T, in the last sentence, remove the words
``September 25, 2009'' and add, in their place, the words ``November
30, 2010''.

0
3. In Sec.  230.239T(e), remove the words ``September 25, 2009'' and
add, in their place, the words ``November 30, 2010''.

PART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF
1934

0
4. The authority citation for Part 240 continues to read, in part, as
follows:

    Authority:  15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77z-3,
77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i,
78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n, 78o, 78p, 78q, 78s, 78u-5,
78w, 78x, 78ll, 78mm, 80a-20, 80a-23, 80a-29, 80a-37, 80b-3, 80b-4,
80b-11, and 7201 et seq.; and 18 U.S.C. 1350, unless otherwise
noted.
* * * * *

Sec. Sec.  240.12a-10T and 240.12h-1   [Amended]

0
5. In Sec.  240.12a-10T(b), remove the words ``September 25, 2009'' and
add, in their place, the words ``November 30, 2010''.
0
6. In Sec.  240.12h-1(h)T, in the last sentence, remove the words
``September 25, 2009'' and add, in their place, the words ``November
30, 2010''.

PART 260--GENERAL RULES AND REGULATIONS, TRUST INDENTURE ACT OF
1939

0
7. The authority citation for Part 260 continues to read as follows:

    Authority:  15 U.S.C. 77eee, 77ggg, 77nnn, 77sss, 78ll(d), 80b-
3, 80b-4, and 80b-11.

Sec.  260.4d-11T  [Amended]

0
8. Section 260.4d-11T is amended by removing the words ``September 25,
2009'' and adding, in their place, the words ``November 30, 2010'' in
the last sentence.

    September 14, 2009.

    By the Commission.

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-22389 Filed 9-16-09; 8:45 am]

BILLING CODE 8010-01-P