[Federal Register: September 28, 2009 (Volume 74, Number 186)]
[Notices]
[Page 49368-49369]
[DOCID:fr28se09-45]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings No. 1

September 17, 2009.
    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:
    Docket Numbers: RP09-1041-000.
    Applicants: CenterPoint Energy-Mississippi River Transmission.
    Description: CenterPoint Energy- Mississippi River Transmission
Corporation submits its Annual Report of Penalty Revenue Credits
covering during the twelve month reporting period ended 7/31/09.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-0079.
    Comment Date: 5 p.m. Eastern Time on Monday, September 28, 2009.

    Docket Numbers: RP09-1042-000.
    Applicants: CenterPoint Energy-Mississippi River Transmission.
    Description: CenterPoint Energy- Mississippi River Transmission
Corporation submits Sixty-Sixth Revised Sheet 5 et al of its FERC Gas
Tariff, Third Revised Volume 1, to be effective 11/1/09.
    Filed Date: 09/14/2009.
    Accession Number: 20090914-0078.
    Comment Date: 5 p.m. Eastern Time on Monday, September 28, 2009.

    Docket Numbers: RP09-1044-000.
    Applicants: Texas Eastern Transmission LP.
    Description: Texas Eastern Transmission, LP submits Second Revised
Sheet No 297A et al FERC Gas Tariff, Seventh Revised Volume No 1.
    Filed Date: 09/15/2009.
    Accession Number: 20090915-0063.
    Comment Date: 5 p.m. Eastern Time on Monday, September 28, 2009.

    Docket Numbers: RP09-1045-000.
    Applicants: Viking Gas Transmission Company.
    Description: Viking Gas Transmission Co submits Fourth Revised
Sheet 98 et al to FERC Gas Tariff, First Revised Volume 1, to be
effective 10/15/09.
    Filed Date: 09/15/2009.
    Accession Number: 20090916-0037.
    Comment Date: 5 p.m. Eastern Time on Monday, September 28, 2009.

    Docket Numbers: RP09-1046-000.

    Applicants: Hardy Storage Company, LLC.
    Description: Hardy Storage Co, LLC submits Third Revised Sheet 13
to FERC Gas Tariff, Original Volume 1, to be effective 11/1/09.
    Filed Date: 09/15/2009.
    Accession Number: 20090916-0036.
    Comment Date: 5 p.m. Eastern Time on Monday, September 28, 2009.

    Docket Numbers: RP09-1047-000.
    Applicants: Dominion Cove Point LNG, LP.
    Description: Report of Distribution of Revenue Credits of Dominion
Cove Point LNG, LP.
    Filed Date: 09/15/2009.
    Accession Number: 20090915-5110.
    Comment Date: 5 p.m. Eastern Time on Monday, September 28, 2009.

    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St. NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please e-mail<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. E9-23352 Filed 9-25-09; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 101 (Friday, May 24, 2019)]
[Notices]
[Pages 24130-24131]
[FR Doc No: 2019-10881]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP19-1224-000.
    Applicants: Equitrans, L.P.
    Description: Compliance filing Notice Regarding Non-Jurisdictional
Gathering Facilities (PEB-743) 5-16-2019.
    Filed Date: 5/16/19.
    Accession Number: 20190516-5070.
    Comments Due: 5 p.m. ET 5/28/19.

    Docket Numbers: RP19-1225-000.
    Applicants: Transcontinental Gas Pipe Line Company, LLC.
    Description: Sec.  4(d) Rate Filing: Priority of Service--
Compliance Filing to be effective 7/1/2019.
    Filed Date: 5/16/19.
    Accession Number: 20190516-5097.
    Comments Due: 5 p.m. ET 5/28/19.

    Docket Numbers: RP15-23-011.
    Applicants: Transwestern Pipeline Company, LLC.

    Description: Compliance filing RP15-23 Compliance with Order on
Reserved Capacity Release Issue to be effective 7/1/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5006.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-1016-001.
    Applicants: Kinder Morgan Louisiana Pipeline LLC.
    Description: Compliance filing Supplemental Compliance Filing
Pursuant to Order No. 587-Y to be effective 8/1/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5000.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-1017-001.
    Applicants: Kinder Morgan Illinois Pipeline LLC.
    Description: Compliance filing Supplemental Compliance Filing
Pursuant to Order No. 587-Y to be effective 8/1/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5001.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-1226-000.
    Applicants: Greylock Pipeline, LLC.
    Description: Compliance filing Revised negotiated rates 2019 to be
effective 3/1/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5022.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-1227-000.
    Applicants: NEXUS Gas Transmission, LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rates--Columbia Gas
860005 5-21-2019 Release to be effective 5/21/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5039.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-1228-000.
    Applicants: Equitrans, L.P.
    Description: Sec.  4(d) Rate Filing: Reservation Charge Credit
Exemptions to be effective 6/17/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5083.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-979-001.
    Applicants: Horizon Pipeline Company, L.L.C.
    Description: Compliance filing Supplemental Compliance Filing
Pursuant Order No. 587-Y to be effective 8/1/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5027.
    Comments Due: 5 p.m. ET 5/29/19.

    Docket Numbers: RP19-980-001.
    Applicants: Natural Gas Pipeline Company of America.
    Description: Compliance filing Supplemental Compliance Filing
Pursuant to Order No. 587-Y to be effective 8/1/2019.
    Filed Date: 5/17/19.
    Accession Number: 20190517-5026.
    Comments Due: 5 p.m. ET 5/29/19.

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

    Dated: May 20, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-10881 Filed 5-23-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 32 (Friday, February 15, 2013)]
[Notices]
[Pages 11245-11249]
[FR Doc No: 2013-03489]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68870; File No. SR-NYSEArca-2012-139]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change To List and Trade First Trust
Preferred Securities and Income ETF Under NYSE Arca Equities Rule 8.600

February 8, 2013.

I. Introduction

    On December 6, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the First
Trust Preferred Securities and Income ETF (``Fund'') under NYSE Arca
Equities Rule 8.600. The proposed rule change was published in the
Federal Register on December 26, 2012.\3\ The Commission received no
comments on the proposal. This order grants approval of the proposed
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 68458 (December 18,
2012), 77 FR 76148 (``Notice'').
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II. Description of the Proposal

    The Exchange proposes to list and trade the Shares of the Fund
pursuant to NYSE Arca Equities Rule 8.600, which governs the listing
and trading of Managed Fund Shares on the Exchange. The Shares will be
offered by First Trust Exchange-Traded Fund III (``Trust''), which is
organized as a Massachusetts business trust and is registered with the
Commission as an open-end management investment company.\4\ The
investment adviser to the Fund is First Trust Advisors L.P.
(``Adviser''). Stonebridge Advisors LLC will serve as investment sub-
adviser to the Fund (``Sub-Adviser'') and will provide day-to-day
portfolio management of the Fund. First Trust Portfolios L.P.
(``Distributor'') will be the principal underwriter and distributor of
the Fund's Shares. Brown Brothers Harriman & Co. will serve as
administrator, custodian, and transfer agent for the Fund. The Exchange
states that each of the Adviser and Sub-Adviser is affiliated with a
broker-dealer and represents that each such Adviser and Sub-Adviser has
implemented a fire wall with respect to its respective broker-dealer
affiliate regarding access to information concerning the composition of
and changes to the Fund's portfolio.\5\
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    \4\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). On September 23, 2011, the Trust filed with the
Commission a registration statement on Form N-1A under the
Securities Act of 1933 and under the 1940 Act relating to the Fund
(File Nos. 333-176976 and 811-22245) (``Registration Statement'').
In addition, the Commission has issued an order granting certain
exemptive relief to the Trust under the 1940 Act. See Investment
Company Act Release No. 30029 (April 10, 2012) (File No. 812-13795)
(``Exemptive Order'').
    \5\ See Commentary .06 to NYSE Arca Equities Rule 8.600. The
Exchange represents that, in the event (a) the Adviser or the Sub-
Adviser becomes newly affiliated with a broker-dealer, or (b) any
new adviser or sub-adviser becomes affiliated with a broker-dealer,
it will implement a fire wall with respect to such broker-dealer
regarding access to information concerning the composition and/or
changes to the portfolio, and will be subject to procedures designed
to prevent the use and dissemination of material, non-public
information regarding such portfolio.
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Description of the Fund

    The Fund's objective will be to provide current income and total
return. Under normal market conditions,\6\ the Fund will invest at
least 80% of its net assets (including investment borrowings) in
preferred securities (``Preferred Securities'') and income-producing
debt securities (``Income Securities'').\7\ The Adviser represents

that initially at least 50% of the Fund's net assets invested in
Preferred Securities and 50% of the Income Securities held by the Fund
will be exchange-listed.\8\ However, the Fund reserves the right to
reduce the percentage of assets that are exchange-listed. Preferred
Securities held by the Fund generally pay fixed or adjustable-rate
distributions to investors and have preference over common stock in the
payment of distributions and the liquidation of a company's assets, but
are generally junior to all forms of the company's debt, including both
senior and subordinated debt. For purposes of the 80% test set forth
above, Income Securities consist of both foreign and domestic debt
instruments, including corporate bonds, high yield bonds, convertible
securities, and contingent convertible capital securities. In addition,
for purposes of the 80% test set forth above, securities of other open-
end funds, closed-end funds, or exchange-traded funds (``ETFs'')
registered under the 1940 Act \9\ that invest primarily in Preferred
Securities or Income Securities will be deemed to be Preferred
Securities or Income Securities, respectively. The Adviser represents
that at least 80% of the Preferred Securities and Income Securities
held by the Fund will have a minimum original principal amount
outstanding of $100 million or more. In addition, the Fund's portfolio
will comprise a minimum of 13 non-affiliated issuers.
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    \6\ The term ``under normal market conditions'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the equity markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar intervening
circumstance.
    \7\ The Exchange states that the risks and potential rewards of
investing in the Fund may at times be similar to the risks and
potential rewards of investing in both equity funds and bond funds.
Certain of the Preferred Securities in which the Fund will invest
will be traditional preferred stocks that issue dividends that
qualify for the dividend received deduction under which
``qualified'' domestic corporations are able to exclude a percentage
of the dividends received from their taxable income. Certain of the
Preferred Securities in which the Fund will invest will be preferred
stock that does not issue dividends that qualify for the dividends
received deduction for eligible investors (``non-DRD preferred
stock'') that do not qualify for the dividends received deduction or
issue qualified dividend income. As described in the Registration
Statement, hybrid preferred securities, another type of Preferred
Securities, are typically junior and fully subordinated liabilities
of an issuer or the beneficiary of a guarantee that is junior and
fully subordinated to the other liabilities of the guarantor.
    \8\ The foreign equity securities, including preferred, hybrid-
preferred, and contingent convertible capital, securities in which
the Fund may invest will be limited to securities that trade in
markets that are members of the Intermarket Surveillance Group
(``ISG''), which includes all U.S. national securities exchanges and
certain foreign exchanges, or are parties to a comprehensive
surveillance sharing agreement with the Exchange.
    \9\ For purposes of this filing, ETFs, which will be listed on a
national securities exchange, include the following: Investment
Company Units (as described in NYSE Arca Equities Rule 5.2(j)(3));
Portfolio Depositary Receipts (as described in NYSE Arca Equities
Rule 8.100); and Managed Fund Shares (as described in NYSE Arca
Equities Rule 8.600). The Fund may invest in the securities of ETFs
in excess of the limits imposed under the 1940 Act pursuant to
exemptive orders obtained by certain ETFs and their sponsors from
the Commission. The Exchange states that the Fund will not invest in
leveraged, inverse, or leveraged inverse ETFs.
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    As stated above, the Fund may invest in a variety of debt
securities, including corporate debt securities.\10\ The broad category
of corporate debt securities includes debt issued by U.S. and non-U.S.
companies of all kinds, including those with small-, mid-, and large-
capitalizations.\11\ Corporate debt may carry fixed or floating rates
of interest.
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    \10\ As described in the Registration Statement, corporate debt
securities are fixed-income securities issued by businesses to
finance their operations. Notes, bonds, debentures, and commercial
paper are the most common types of corporate debt securities, with
the primary difference being their maturities and secured or
unsecured status. Certain debt securities held by the Fund may
include debt instruments that are similar in many respects to
preferred securities.
    \11\ Under normal market conditions, at least 80% of the Fund's
investments in U.S. corporate bonds must have $100 million or more
par amount outstanding to be considered as an eligible investment
and a non-U.S. corporate bond must have $200 million or more par
amount outstanding and significant par value traded to be considered
as an eligible investment. Economic and other conditions may, from
time to time, lead to a decrease in the average par amount
outstanding of bond issuances.
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    Initially, the Fund will invest at least 80% of the Fund's net
assets in Income Securities of issuing firms (``issuers'') that have a
long-term issuer credit rating of investment grade at the time of the
investment. However, the Fund reserves the right to reduce the
percentage of assets invested in investment grade issuers. ``Investment
grade'' is defined as those issuers that have a long-term credit rating
of ``BBB-'' or higher by Standard & Poor's Rating Group, a division of
McGraw Hill Companies, Inc. (``S&P''); ``Baa3'' or higher by Moody's
Investors Service, Inc. (``Moody's''); or a comparable rating by
another nationally recognized statistical rating organization
(``NRSRO''). The Fund may also invest in securities that are unrated by
an NRSRO if such securities are of comparable credit quality.
Comparable credit quality of securities that are unrated by an NRSRO
will be determined by the Sub-Adviser based on fundamental credit
analysis of the unrated issuer and comparable NRSRO-rated peer issuers
of the same industry sector. On a best efforts basis, the Sub-Adviser
will attempt to make a rating determination based on publicly available
data. Factors taken into consideration in determining the comparable
credit quality of the unrated issuer will be company leverage, capital
structure, liquidity, funding, sustainability of cash flows, earnings
quality, market position, and asset quality. In the event that a
security is rated by multiple NRSROs and receives divergent ratings,
the Fund will treat the issuer as being rated in the highest rating
category received from an NRSRO.
    Initially, the Fund may invest up to 20% of the Fund's net assets
in Income Securities issued by below-investment-grade issuers if such
securities have acceptable credit quality and attractive relative
value. However, the Fund reserves the right to increase the percentage
of assets invested in below-investment-grade securities. ``Below
investment grade'' is defined as those issuers that have a long-term
credit rating of ``BBB - or lower by ``S&P,'' ``Baa3'' or lower by
Moody's, or a comparable rating by another NRSRO. The Fund may also
invest in securities that are unrated by an NRSRO if such securities
are of comparable credit quality as determined by the Sub-Adviser.
    The Fund intends to invest at least 25% of its assets in securities
of financial companies. Financial companies include, but are not
limited to, companies involved in activities such as banking, mortgage
finance, consumer finance, specialized finance, investment banking and
brokerage, asset management and custody, corporate lending, insurance
and financial investment, and real estate, including but not limited to
real estate investment trusts.

Other Investments of the Fund

    While the Fund, under normal market conditions, will invest at
least 80% of its net assets (including investment borrowings) in
Preferred Securities and Income Securities, the Fund also may invest
the remainder of its assets in other investments, as described below.
    Normally, the Fund may invest up to 15% of its net assets in
securities with maturities of less than one year or cash equivalents,
or it may hold cash. The percentage of the Fund invested in such
holdings will vary and depend on several factors, including market
conditions. For temporary defensive purposes and during periods of high
cash inflows or outflows, the Fund may depart from its principal
investment strategies and invest part or all of its assets in these
securities or it may hold cash. During such periods, the Fund may not
be able to achieve its investment objective. The Fund may adopt a
defensive strategy when the Sub-Adviser or the Adviser believes
securities in which the Fund normally invests have elevated risks due
to political or economic factors and in other extraordinary
circumstances.
    The Fund may also invest in U.S. government securities \12\ or
short-term

debt securities to keep cash on hand fully invested or for temporary
defensive purposes. The use of temporary investments is not a part of
the principal investment strategy of the Fund. Short-term debt
securities are securities from issuers having a long-term debt rating
of at least A by S&P, Moody's, or Fitch, Inc. and having a maturity of
one year or less. Short-term debt securities are defined to include,
without limitation, the following:
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    \12\ U.S. government securities include U.S. Treasury
obligations and securities issued or guaranteed by various agencies
of the U.S. government, or by various instrumentalities which have
been established or sponsored by the U.S. government. U.S. treasury
obligations are backed by the ``full faith and credit'' of the U.S.
government. Securities issued or guaranteed by federal agencies and
U.S. government sponsored instrumentalities may or may not be backed
by the full faith and credit of the U.S. government.
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    (1) U.S. government securities, including bills, notes, and bonds
differing as to maturity and rates of interest, which are either issued
or guaranteed by the U.S. treasury or by U.S. government agencies or
instrumentalities.
    (2) Certificates of deposit issued against funds deposited in a
bank or savings and loan association. Such certificates are for a
definite period of time, earn a specified rate of return, and are
normally negotiable. If such certificates of deposit are non-
negotiable, they will be considered illiquid securities and be subject
to the Fund's 15% restriction on investments in illiquid securities.
    (3) Bankers' acceptances, which are short-term credit instruments
used to finance commercial transactions.
    (4) Repurchase agreements, which involve purchases of debt
securities. In such an action, at the time the Fund purchases the
security, it simultaneously agrees to resell and redeliver the security
to the seller, who also simultaneously agrees to buy back the security
at a fixed price and time.
    (5) Bank time deposits, which are monies kept on deposit with banks
or savings and loan associations for a stated period of time at a fixed
rate of interest.
    (6) Commercial paper, which are short-term unsecured promissory
notes, including variable rate master demand notes issued by
corporations to finance their current operations. Master demand notes
are direct lending arrangements between the Fund and a corporation.
There is no secondary market for the notes, and they will be considered
illiquid securities and be subject to the Fund's 15% restriction on
investments in illiquid securities. However, they are redeemable by the
Fund at any time. The Fund's Sub-Adviser will consider the financial
condition of the corporation (e.g., earning power, cash flow, and other
liquidity ratios) and will continuously monitor the corporation's
ability to meet all of its financial obligations, because the Fund's
liquidity might be impaired if the corporation were unable to pay
principal and interest on demand. The Fund may only invest in
commercial paper rated A-2 or higher by S&P, Prime-2 or higher by
Moody's, or F2 or higher by Fitch, Inc.
    The Fund may also invest in senior loans, second lien loans, loan
participations, payment-in-kind securities, zero coupon bonds, bank
certificates of deposit, fixed-time deposits, bankers' acceptances,
U.S. government securities, or fixed income securities issued by non-
U.S. governments denominated in U.S. dollars.
    The Fund may invest in warrants. Warrants acquired by the Fund
entitle it to buy common stock from the issuer at a specified price and
time. They do not represent ownership of the securities but only the
right to buy them. Warrants are subject to the same market risks as
stocks, but may be more volatile in price. The Fund's investment in
warrants will not entitle it to receive dividends or exercise voting
rights and will become worthless if the warrants cannot be profitably
exercised before their expiration date.
    The Fund may invest in other pooled investment vehicles and
business development companies that are exchange listed and that invest
primarily in securities of the types in which the Fund may invest
directly.
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment),
including (1) non-negotiable certificates of deposit and master demand
notes, (2) Rule 144A securities, and (3) senior loans, second lien
loans, and loan participation interests. The Fund will monitor its
portfolio liquidity on an ongoing basis to determine whether, in light
of current circumstances, an adequate level of liquidity is being
maintained, and will consider taking appropriate steps in order to
maintain adequate liquidity if, through a change in values, net assets,
or other circumstances, more than 15% of the Fund's net assets are held
in illiquid securities. Illiquid securities include securities subject
to contractual or other restrictions on resale and other instruments
that lack readily available markets as determined in accordance with
Commission staff guidance.
    The Fund will be classified as ``non-diversified'' under the 1940
Act and as a result may invest a relatively high percentage of its
assets in a limited number of issuers. The Fund will only be limited as
to the percentage of its assets which may be invested in the securities
of any one issuer by the diversification requirements imposed by the
Internal Revenue Code of 1986, as amended (``Code''). Other than
financial companies, the Fund may not invest 25% or more of the value
of its total assets in securities of issuers in any one industry or
group of industries. This restriction does not apply to obligations
issued or guaranteed by the U.S. government, its agencies, or
instrumentalities. In addition, the Fund intends to qualify annually
and to elect to be treated as a regulated investment company under the
Code.
    Consistent with the Exemptive Order, the Fund will not invest in
options contracts, futures contracts, or swap agreements. The Fund will
not take short positions in securities. The Fund's investments will be
consistent with the Fund's investment objective and will not be used to
enhance leverage.
    The Exchange represents that that the Shares will conform to the
initial and continued listing criteria under NYSE Arca Equities Rule
8.600. The Exchange further represents that, for initial and/or
continued listing, the Fund will be in compliance with Rule 10A-3 under
the Act,\13\ as provided by NYSE Arca Equities Rule 5.3. A minimum of
100,000 Shares will be outstanding at the commencement of trading on
the Exchange. The Exchange will obtain a representation from the issuer
of the Shares that the net asset value (``NAV'') per Share will be
calculated daily and that the NAV and the Disclosed Portfolio will be
made available to all market participants at the same time.
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    \13\ 17 CFR 240.10A-3.
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    Additional information regarding the Trust, the Fund, and the
Shares, including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosure policies,
distributions, and taxes, among other things, is included in the Notice
and Registration Statement.\14\
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    \14\ See Notice and Registration Statement, supra notes 3 and 4,
respectively.
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III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of Section 6 of the
Act \15\ and the rules and regulations thereunder applicable to a
national securities exchange.\16\ In particular, the Commission finds
that the proposal is consistent with Section 6(b)(5) of the Act,\17\
which requires, among other things, that the Exchange's rules be
designed to promote just and equitable principles of trade, to remove

impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Commission notes that the Fund and the Shares must
comply with the requirements of NYSE Arca Equities Rule 8.600 to be
listed and traded on the Exchange.
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    \15\ 15 U.S.C. 78f.
    \16\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\18\ which sets forth Congress' finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last-
sale information for the Shares will be available via the Consolidated
Tape Association (``CTA'') high-speed line. In addition, information
regarding the intra-day value of the Shares (``indicative optimized
portfolio value'' or ``IOPV''), which is the Portfolio Indicative
Value, as defined in NYSE Arca Equities Rule 8.600(c)(3), will be
widely disseminated by one or more major market data vendors at least
every 15 seconds during the Core Trading Session.\19\ On each business
day, before commencement of trading in Shares in the Core Trading
Session on the Exchange, the Fund will disclose on its Web site the
Disclosed Portfolio, as defined in NYSE Arca Equities Rule 8.600(c)(2),
that will form the basis for the Fund's calculation of NAV at the end
of the business day.\20\ The Fund's NAV will be determined as of the
close of trading (normally 4:00 p.m., Eastern Time) on each day the New
York Stock Exchange (``NYSE'') is open for business.\21\ A basket
composition file, which includes the security names and share
quantities required to be delivered in exchange for the Fund's Shares,
together with estimates and actual cash components, will be publicly
disseminated daily prior to the opening of the NYSE via the National
Securities Clearing Corporation. Information regarding market price and
trading volume of the Shares will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services, and information regarding the previous day's
closing price and trading volume information for the Shares will be
published daily in the financial section of newspapers. The intra-day,
closing, and settlement prices of the portfolio securities and other
instruments also will be readily available from the national securities
exchanges trading such securities, automated quotation systems,
published or other public sources, or on-line information services such
as Bloomberg or Reuters. The Fund's Web site will also include a form
of the prospectus for the Fund, information relating to NAV (updated
daily), and other quantitative and trading information.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \19\ According to the Exchange, several major market data
vendors display and/or make widely available IOPVs published on the
CTA or other data feeds.
    \20\ On a daily basis, the Adviser will disclose for each
portfolio security or other financial instrument of the Fund the
following information: Ticker symbol (if applicable); name of
security and financial instrument; number of shares or dollar value
of securities and financial instruments held in the portfolio; and
percentage weighting of the security and financial instrument in the
portfolio.
    \21\ The Exchange states that the price of a non-U.S. security
that is primarily traded on a non-U.S. exchange shall be updated,
using the last sale price, every 15 seconds throughout the trading
day, provided, that upon the closing of such non-U.S. exchange, the
closing price of the security, after being converted to U.S.
dollars, will be used. Furthermore, in calculating the IOPV of the
Fund's Shares, exchange rates may be used throughout the day (9:00
a.m. to 4:15 p.m., Eastern Time) that may differ from those used to
calculate the NAV per Share of the Fund and consequently may result
in differences between the NAV and the IOPV.
---------------------------------------------------------------------------

    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Commission notes that the Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.\22\
In addition, the Exchange will halt trading in the Shares under the
specific circumstances set forth in NYSE Arca Equities Rule
8.600(d)(2)(D) and may halt trading in the Shares if trading is not
occurring in the securities and/or the financial instruments comprising
the Disclosed Portfolio of the Fund, or if other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present.\23\ Further, the Commission notes that the
Reporting Authority that provides the Disclosed Portfolio must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the actual components of the portfolio.\24\ The Exchange
states that it has a general policy prohibiting the distribution of
material, non-public information by its employees. Moreover, the
Exchange states that the Adviser and Sub-Adviser are each affiliated
with a broker-dealer, and represents that each such Adviser and Sub-
Adviser has implemented a fire wall with respect to its respective
broker-dealer affiliate regarding access to information concerning the
composition and/or changes to the Fund's portfolio.\25\ The Exchange
further represents that it is able to obtain information via the ISG
from other exchanges that are ISG members, including all U.S. national
securities exchanges, or with which the Exchange has in place a
comprehensive surveillance sharing agreement.\26\
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    \22\ See NYSE Arca Equities Rule 8.600(d)(1)(B).
    \23\ See NYSE Arca Equities Rules 8.600(d)(2)(C) and
8.600(d)(2)(D). With respect to trading halts, the Exchange may
consider other relevant factors in exercising its discretion to halt
or suspend trading in the Shares of the Fund. Trading in Shares of
the Fund will be halted if the circuit breaker parameters in NYSE
Arca Equities Rule 7.12 have been reached. Trading also may be
halted because of market conditions or for reasons that, in the view
of the Exchange, make trading in the Shares inadvisable.
    \24\ See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii).
    \25\ See supra note 5 and accompanying text. The Commission
notes that an investment adviser to an open-end fund is required to
be registered under the Investment Advisers Act of 1940 (``Advisers
Act''). As a result, the Adviser and its related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act
relating to codes of ethics. This Rule requires investment advisers
to adopt a code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
    \26\ As noted above, the foreign equity securities, including
preferred, hybrid-preferred, and contingent convertible capital,
securities in which the Fund may invest will be limited to
securities that trade in markets that are members of ISG, which
includes all U.S. national securities exchanges and certain foreign
exchanges, or are parties to a comprehensive surveillance sharing
agreement with the Exchange. See supra note 8. In addition, ETFs in
which the Fund may invest will be listed on a national securities
exchange. See supra note 9.
---------------------------------------------------------------------------

    The Exchange represents that the Shares are deemed to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of

equity securities. In support of this proposal, the Exchange has made
representations, including:
    (1) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The Exchange's surveillance procedures applicable to derivative
products, which include Managed Fund Shares, are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and applicable federal
securities laws.
    (4) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit (``ETP'') Holders in an Information Bulletin
of the special characteristics and risks associated with trading the
Shares. Specifically, the Information Bulletin will discuss the
following: (a) The procedures for purchases and redemptions of Shares
in Creation Unit aggregations (and that Shares are not individually
redeemable); (b) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (c) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated IOPV will not be calculated or publicly
disseminated; (d) how information regarding the IOPV is disseminated;
(e) the requirement that ETP Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (f) trading information.
    (5) For initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act,\27\ as provided by NYSE Arca
Equities Rule 5.3.
---------------------------------------------------------------------------

    \27\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (6) Initially, at least 50% of the Fund's net assets invested in
Preferred Securities and Income Securities will be exchange-listed.\28\
In addition, at least 80% of the Preferred Securities and Income
Securities held by the Fund will have a minimum original principal
amount outstanding of $100 million or more. Specifically with respect
to corporate bonds, under normal market conditions, at least 80% of the
Fund's investments in U.S. corporate bonds must have $100 million or
more par amount outstanding to be considered as an eligible investment,
and a non-U.S. corporate bond must have $200 million or more par amount
outstanding and significant par value traded to be considered as an
eligible investment. Further, the Fund's portfolio will comprise a
minimum of 13 non-affiliated issuers.
---------------------------------------------------------------------------

    \28\ See supra note 26 and accompanying text.
---------------------------------------------------------------------------

    (7) The Fund will invest at least 80% of its net assets in Income
Securities of issuing firms having a long-term issuer credit rating of
investment grade at the time of investment.
    (8) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities, including non-negotiable certificates of
deposit and master demand notes; Rule 144A securities; and senior
loans, second lien loans, and loan participation interests.
    (9) The Fund will not: (a) Take short positions in securities; and
(b) pursuant to the terms of the Exemptive Order, invest in options
contracts, futures contracts, or swap agreements. In addition, the
Fund's investments will be consistent with its investment objective and
will not be used to enhance leverage.
    (10) A minimum of 100,000 Shares of the Fund will be outstanding at
the commencement of trading on the Exchange.

This approval order is based on all of the Exchange's representations
and description of the Fund, including those set forth above and in the
Notice.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \29\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\30\ that the proposed rule change (SR-NYSEArca-2012-139) be, and
it hereby is, approved.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
---------------------------------------------------------------------------

    \31\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03489 Filed 2-14-13; 8:45 am]
BILLING CODE 8011-01-P


MEMORANDUM
To: 		Docket EPA-HQ-OAR-2023-0072
From: 		U.S. EPA
--------------------------------------------------------------------------------
Subject: 	Impacts of Proposed Actions References
--------------------------------------------------------------------------------

THE FOLLOWING ARE REFERENCES THE U.S. Environmental Protection Agency (EPA) cited in section XIV (Impacts of Proposed Actions) of the preamble of the proposed New Source Performance Standards for Greenhouse Gas Emissions from New, Modified, and Reconstructed Fossil Fuel-Fired Electric Generating Units; Emission Guidelines for Greenhouse Gas Emissions from Existing Fossil Fuel-Fired Electric Generating Units; and Repeal of the Affordable Clean Energy Rule.


[Federal Register: May 22, 2008 (Volume 73, Number 100)]
[Notices]
[Page 29805-29808]
[DOCID:fr22my08-98]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57824; File No. SR-Phlx-2008-35]

Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to FLEX Equity Option Opening Transactions

May 15, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 5, 2008, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Phlx. The
Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A)
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Phlx proposes to amend Phlx Rule 1079 (FLEX Index, Equity and
Currency Options) to establish a pilot program that would reduce from
250 contracts to 150 contracts the minimum value size for an opening
transaction (other than FLEX Quotes responsive to a FLEX Request for
Quotes) \5\ in any

FLEX Equity Option \6\ series in which there is no open interest at the
time a FLEX Request for Quotes (``RFQ'') is submitted (the ``Pilot
Program''). The Exchange also proposes to modify the minimum value size
for an opening transaction in a currently-opened FLEX Equity series
(other than FLEX Quotes responsive to a RFQ) to the lesser of 100
contracts or the number of contracts overlying $1 million in the
underlying securities.
---------------------------------------------------------------------------

    \5\ FLEX Quotes responsive to a FLEX Request for Quote (``RFQ'')
have different parameters that are not changed by this filing. See
Phlx Rule 1079(a)(8)(C).
    \6\ FLEX Equity Options are flexible exchange-traded options
contracts that overlie equity securities. FLEX Equity Options
provide investors with the ability to customize basic option
features including size, expiration date, exercise style, and
certain exercise prices. FLEX Equity Options (as also FLEX index
options) may have expiration dates within five years. See Phlx Rule
1079.
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Phlx, the
Commission's Public Reference Room, and http://www.phlx.com.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to initiate a year and a
half long Pilot Program that would reduce the minimum value size for an
opening transaction (other than FLEX Quotes responsive to a FLEX RFQ)
in any FLEX Equity Option series in which there is no open interest at
the time an RFQ is submitted, and to modify the minimum value size for
an opening transaction in a currently-opened FLEX Equity series (other
than FLEX Quotes responsive to a FLEX RFQ). The proposed clarification
of the criteria for opening FLEX option transactions should provide
members that use FLEX Equity Options greater flexibility in structuring
the terms of such options to better comport with the particular needs
of the members and their customers.
    Currently, Phlx Rule 1079(a)(8)(A) sets the minimum opening
transaction value size in the case of a FLEX Equity Option in a newly
established series as the lesser of (i) 250 contracts or (ii) the
number of contracts overlying $1 million in the underlying
securities.\7\ Under the Pilot Program, the Exchange proposes to reduce
the ``250 contracts'' component to ``150 contracts;'' the $1 million
underlying value component will continue to apply unchanged.\8\ The
proposed Pilot Program would be similar to one that has already been
approved for other options exchanges.\9\
---------------------------------------------------------------------------

    \7\ Under this formula, an opening transaction in a FLEX Equity
series in a stock priced at $40 or more would reach the $1 million
limit before it would reach the contract size limit, i.e., 250
contracts times the multiplier (100) times the stock price ($40)
equals $1 million in underlying value. For a FLEX Equity series in a
stock priced at less than $40, the 250 contract size limit applies.
    \8\ Under this proposed formula, an opening transaction in a
FLEX Equity series in a stock priced at approximately $66.67 or more
would reach the $1 million limit before it would reach the contract
size limit, i.e., 150 contracts times the multiplier (100) times the
stock price ($66.67) equals just over $1 million in underlying
value. For a FLEX Equity series in a stock priced at less than
$66.67, the 150 contract size limit would apply.
    \9\ See Securities Exchange Act Release No. 57429 (March 4,
2008), 73 FR 13058 (March 11, 2008) (SR-CBOE-2006-36) (``CBOE Pilot
Program Order'').
---------------------------------------------------------------------------

    Given that FLEX Equity Option transactions can occur in increments
of 100 or more contracts in subsequent opening transactions,\10\ the
Exchange believes it is reasonable to permit the initial series opening
transaction size to be 150 contracts (or $1 million in underlying
value, whichever is less). The Exchange believes that the proposed
reduction of the minimum value size for opening a series provides FLEX-
participating members and their customers with greater flexibility in
structuring the terms of FLEX Equity Options to better suit the FLEX
traders' particular needs.
---------------------------------------------------------------------------

    \10\ Specifically, for FLEX Equity Options the minimum value
size for a transaction in any currently-opened FLEX series is, as
proposed, the lesser of 100 contracts or the number of contracts
overlying $1 million in the underlying securities; or the lesser of
25 contracts or the remaining size in the case of a closing
transaction. Additionally, the minimum value size for a FLEX Quote
entered in response to a RFQ in FLEX Equity Options is the lesser of
25 contracts or the remaining size in a closing transaction. See
Phlx Rules 1079(a)(8)(B)(ii) and 1079(a)(8)(C)(ii).
---------------------------------------------------------------------------

    The Exchange notes that the opening size requirement for FLEX
Equity Options was originally put in place to limit participation in
FLEX Equity Options to sophisticated, high net worth investors rather
than retail investors.\11\ According to the Chicago Board Options
Exchange, Incorporated (``CBOE''), which has a pilot program that is
similar to the one proposed herein, it received requests from broker-
dealers representing institutional clients that the minimum value size
for opening transactions be reduced.\12\ In proposing the reduction of
the 250 contract component to 150 contracts, CBOE stated in its filing
that it is cognizant of the desire to continue to provide both the
requisite amount of investor protection that the minimum opening size
requirement was originally designed to achieve, as well as the need for
market participants to have the flexibility to serve their customers'
particular investment needs.\13\
---------------------------------------------------------------------------

    \11\ The existing customer base for FLEX Options includes both
institutional investors and high net worth individuals.
    \12\ See CBOE Pilot Program Order, supra note 9, at 73 FR 13059.
    \13\ See id.
---------------------------------------------------------------------------

    The Exchange believes that modifying the minimum opening
transaction value size in this way will further broaden the base of
institutional investors that use FLEX Equity Options to manage their
trading and investment risk, including investors that currently trade
in the over-the-counter market for customized options that can take on
contract characteristics similar to FLEX Options but for which similar
opening size restrictions do not apply. The Exchange believes that
market participants benefit from being able to trade these customized
options in an exchange environment in several ways, including, but not
limited to, enhanced efficiency in initiating and closing out
positions; increased market transparency; and heightened contra-party
creditworthiness due to the role of The Options Clearing Corporation as
issuer and guarantor of FLEX Equity Options.
    Should the Exchange desire to propose an extension, expansion, or
permanent implementation of the Pilot Program, the Exchange would
submit, along with a filing proposing any necessary amendments to the
Pilot Program, a pilot program report.\14\ The report would be
submitted to the Commission at least ninety days prior to the
expiration date of the one-and-a-half year Pilot Program.
---------------------------------------------------------------------------

    \14\ At a minimum the report must provide (i) data and analysis
on the open interest and trading volume in FLEX Equity Options for
which series were opened with a minimum opening size of 150 to 249
contracts and less than $1 million in underlying value; and (ii)
analysis on the types of investors that initiated opening FLEX
Equity Options transactions (i.e., institutional, high net worth, or
retail, if any). The proposed reporting requirements for the instant
proposal are identical to the CBOE Pilot Program. This information
was confirmed pursuant to a telephone conversation between Jurij
Trypupenko, Director and Counsel, Phlx and Marc McKayle, Special
Counsel, Division of Trading and Markets, SEC on May 12, 2008.
---------------------------------------------------------------------------

    Finally, the Exchange is also proposing to modify the minimum value

size for an opening transaction in a currently-opened FLEX Equity
series (other than FLEX Quotes responsive to a FLEX RFQ). Presently,
Phlx Rule 1079(a)(8)(B) sets the minimum transaction value size for an
opening transaction in a currently-opened series at 100 contracts. The
Exchange is proposing to modify the minimum size formula to the lesser
of (i) 100 contracts or (ii) the number of contracts overlying $1
million in the underlying securities. This change would only impact
those FLEX Equity series in which the underlying stock is trading at
more than $100.\15\
---------------------------------------------------------------------------

    \15\ Under this proposed formula, a transaction in a currently-
opened FLEX Equity series in a stock priced at more than $100 would
reach the $1 million limit before it would reach the contract size
limit, i.e., 100 contracts times the multiplier (100) times the
stock price ($100) equals $1 million in underlying value.
---------------------------------------------------------------------------

    The FLEX minimum size requirements for subsequent opening
transactions in a currently-opened series is higher for certain stocks
priced over $100 than the minimum size needed to initially open the
series in similarly priced stocks. The Exchange therefore believes that
this proposal is necessary for there to be consistency between the
minimum size requirements for new series and currently-opened series
when the underlying stock is trading at more than $100.\16\
---------------------------------------------------------------------------

    \16\ For example, a new FLEX Equity series in a stock trading at
$110 could open with an initial transaction size of 91 contracts,
i.e., 91 contracts times the multiplier (100) times the stock price
($110) equals just over $1 million in underlying value. Once the
series is opened, absent the proposed change, any further opening
transactions would require a minimum contract size of 100 contracts,
despite the fact that with the stock price of $110, this would be
valued at $1.1 million, more than the value of the initial opening
transaction.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \17\ in general, and furthers the objectives of Section
6(b)(5) of the Act \18\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by, among other things, lowering from 250 to 150 the minimum
number of contracts required to open a FLEX series and thereby
providing FLEX-participating members and their customers greater
flexibility to trade FLEX Equity Options.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.

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

    No written comments were either solicited or received.

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

    The Exchange has designated the proposed rule change as one that
may take effect upon filing with the Commission pursuant to Section
19(b)(3)(A) of the Act \19\ and Rule 19b-4(f)(6)(iii) thereunder \20\
because it does not: (i) Significantly affect the protection of
investors or the public interest; (ii) impose any significant burden on
competition; and (iii) become operative for 30 days from the date on
which it was filed, or such shorter time as the Commission may
designate.\21\
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its
intent to file a proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has fulfilled this requirement. In particular, the
Commission notes that the proposal was originally designated under
Section 19(b)(2) of the Act (File No. SR-Phlx-2008-29). Following a
conversation with Commission staff, the Phlx withdrew that filing
and submitted the present filing designated for immediate
effectiveness under Section 19(b)(3)(A).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing. Rule
19b-4(f)(6)(iii), however, permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange requested that the
Commission waive the 30-day operative delay and designate the proposed
rule change immediately operative, so the Exchange can implement the
rule change, which is based on a CBOE proposal recently approved by the
Commission, without delay.\22\ The Exchange believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest in that it would provide it with the ability to
trade products that are traded or available on other options exchanges.
---------------------------------------------------------------------------

    \22\ See CBOE Pilot Program Order, supra note 9.
---------------------------------------------------------------------------

    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\23\ Therefore, the Commission designates the proposal to be
operative upon filing.
---------------------------------------------------------------------------

    \23\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2008-35 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2008-35. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in

the Commission's Public Reference Room, 100 F Street, NE., Washington,
DC 20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of the filing also will be available for inspection and
copying at the principal office of the Phlx. All comments received will
be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-Phlx-2008-35 and should be submitted on
or before June 12, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-11428 Filed 5-21-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 80, Number 21 (Monday, February 2, 2015)]
[Notices]
[Pages 5600-5602]
[FR Doc No: 2015-01863]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74145; File No. SR-Phlx-2015-09]

 Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Regarding
the Short Term Option Series Program

January 27, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that, on January 21, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange is filing with the Commission a proposal to amend Rule
1012 (Series of Options Open for Trading) to introduce finer $.50
strike price intervals in non-index Short Term Options with strike
prices less than $100.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of this proposed rule change is to amend Rule 1012
governing the Short Term Option (``STO'') \3\ Series Program to
introduce finer strike price intervals for certain STOs. In particular,
the Exchange proposes to amend Commentary .11(e) to Rule 1012 to extend
$0.50 strike price intervals in non-index options to STOs with strike
prices less than $100 instead of the current $75. This proposed change
is intended to eliminate gapped strikes between $75 and $100 that
result from conflicting strike price parameters under the STO Series
Program and the $2.50 Strike Price Program, as described in more detail
below.
---------------------------------------------------------------------------

    \3\ STOs, also known as ``weekly options'' as well as ``Short
Term Options'', are series in an options class that are approved for
listing and trading on the Exchange in which the series are opened
for trading on any Thursday or Friday that is a business day and
that expire on the Friday of the next business week. If a Thursday
or Friday is not a business day, the series may be opened (or shall
expire) on the first business day immediately prior to that Thursday
or Friday, respectively. STOs are listed and traded pursuant to the
STO Series Program. For STO Series Program rules regarding non-index
options, see Rule 1000(b)(44) and Commentary .11 to Rule 1012. For
STO Series Program rules regarding index options, see Rule
1000A(b)(16) and Rule 1101A(b)(vi).
---------------------------------------------------------------------------

    This is a competitive filing that is based on a recent STO proposal
of the International Securities Exchange, LLC (``ISE'').\4\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 73999 (January 6,
2015), 80 FR 1559 (January 12, 2015) (SR-ISE-2014-52) (order
approving).
---------------------------------------------------------------------------

    Under the Exchange's rules, the Exchange may list STOs in up to
fifty option classes in addition to option classes that are selected by
other securities exchanges that employ a similar program under their
respective rules.\5\ On any Thursday or Friday that is a business day,
the Exchange may list STO series in designated option classes that
expire at the close of business on each of the next five Fridays that
are business days and are not Fridays in which monthly or quarterly
options expire.\6\ These STO series trade in $0.50, $1, or $2.50 or
greater strike price intervals depending on the strike price and
whether the option trades in dollar increments in the related monthly
expiration.\7\ Specifically, STOs in non-index option classes admitted
to the STO Series Program currently trade in: (1) $0.50 or greater
intervals for strike prices less than $75, or for option classes that
trade in one dollar increments in the related monthly expiration
option; (2) $1 or greater intervals for strike prices that are between
$75 and $150; and (3) $2.50 or greater intervals for strike prices
above $150.\8\
---------------------------------------------------------------------------

    \5\ See Commentary .11(a) to Rule 1012.
    \6\ See Commentary .11 to Rule 1012.
    \7\ See Commentary .11(e) to Rule 1012.
    \8\ Id.
---------------------------------------------------------------------------

    The Exchange also operates a $2.50 Strike Price Program that
permits the Exchange to select up to sixty options classes on
individual stocks to trade in $2.50 strike price intervals, in addition
to option classes selected by other securities exchanges that employ a
similar program under their respective rules.\9\ Monthly expiration
options in classes admitted to the $2.50 Strike

Price Program trade in $2.50 intervals where the strike price is (1)
greater than $25 but less than $50; or (2) between $50 and $100 if the
strikes are no more than $10 from the closing price of the underlying
stock in its primary market on the preceding day.\10\ These strike
price parameters conflict with strike prices allowed for STOs as dollar
strikes between $75 and $100 otherwise allowed under the STO Series
Program may be within $0.50 of strikes listed pursuant to the $2.50
Strike Price Program. In order to remedy this conflict, the Exchange
proposes to extend the $0.50 strike price intervals currently allowed
for STOs with strike prices less than $75 to STOs with strike prices
less than $100.
---------------------------------------------------------------------------

    \9\ See Commentary .05(b) to Rule 1012.
    \10\ Id. For a definition of ``primary market'', see Rule
1000(b)31.
---------------------------------------------------------------------------

    With this proposed change, STOs in non-index option classes will
trade in: (1) $0.50 or greater intervals for strike prices less than
$100, or for option classes that trade in one dollar increments in the
related monthly expiration option; (2) $1 or greater intervals for
strike prices that are between $100 and $150; and (3) $2.50 or greater
intervals for strike prices above $150.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder, including the
requirements of Section 6(b) of the Act.\11\ In particular, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \12\ requirements that the rules of an exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and to perfect the mechanism for a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    During the month prior to expiration, the Exchange is permitted to
list related monthly option contracts in the narrower strike price
intervals available for STO series.\13\ After transitioning to short
term strike price intervals, however, monthly options that trade in
$2.50 intervals between $50 and $100 under the $2.50 Strike Price
Program, trade with dollar strikes between $75 and $150. Due to the
overlap of $1 and $2.50 intervals, the Exchange cannot list certain
dollar strikes between $75 and $100 that conflict with the prior $2.50
strikes. For example, if the Exchange initially listed monthly options
on ABC with $75, $77.50, and $80 strikes, the Exchange could list the
$76 and $79 strikes when these transition to short term intervals. The
Exchange would not be permitted to list the $77 and $78 strikes,
however, as these are $0.50 away from the $77.50 strike already listed
on the Exchange. This creates gapped strikes between $75 and $100,
where investors are not able to trade otherwise allowable dollar
strikes on the Exchange. Similarly, these conflicting strike price
parameters create issues for investors who want to roll their positions
from monthly to weekly expirations. In the example above, for instance,
an investor that purchased a monthly ABC option with a $77.50 strike
price would not be able to roll that position into a later short term
expiration with the same strike price as that strike is unavailable
under current STO Series Program rules. Permitting $0.50 intervals for
STOs up to $100 would remedy both of these issues as strikes allowed
under the $2.50 Strike Price Program would not conflict with the finer
$0.50 strike price interval.
---------------------------------------------------------------------------

    \13\ See Commentary .05(a)(vii) to Rule 1012.
---------------------------------------------------------------------------

    The STO Series Program has been well-received by market
participants and the Exchange believes that introducing finer strike
price intervals for STOs with strike prices between $75 and $100, and
thereby eliminating the gapped strikes described above, will benefit
these market participants by giving them more flexibility to closely
tailor their investment and hedging decisions.
    With regard to the impact of this proposal on system capacity, the
Exchange has analyzed its capacity and represents that it and the
Options Price Reporting Authority (``OPRA'') have the necessary systems
capacity to handle any potential additional traffic associated with
this proposed rule change. The Exchange believes that its members will
not have a capacity issue as a result of this proposal. The Exchange
also represents that it does not believe this expansion will cause
fragmentation of liquidity.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. To the contrary, the
Exchange believes that the proposed rule change will result in
additional investment options and opportunities to achieve the
investment objectives of market participants seeking efficient trading
and hedging vehicles, to the benefit of investors, market participants,
and the marketplace in general.

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

    No written comments were either solicited or received.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6)
thereunder.\15\
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange stated that waiver of this requirement will ensure
fair competition among exchanges by allowing the Exchange to open
additional series of individual stocks and ETF options in $.50 strike
price intervals up to $100 in the same manner as ISE. For this reason,
the Commission believes that the proposed rule change presents no novel
issues and that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest; and will allow the
Exchange to remain competitive with other exchanges. Therefore, the
Commission designates the proposed rule change to be operative upon
filing.\16\
---------------------------------------------------------------------------

    \16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the

public interest, for the protection of investors, or otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2015-09 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-Phlx-2015-09. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2015-09 and should be
submitted on or before February 23, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-01863 Filed 1-30-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 47 (Friday, March 12, 2021)]
[Rules and Regulations]
[Pages 13985-13987]
[FR Doc No: 2021-05143]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-1107; Project Identifier 2019-SW-049-AD; Amendment
39-21444; AD 2021-05-01]
RIN 2120-AA64

Airworthiness Directives; Airbus Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for all
Airbus Helicopters Model SA330J helicopters. This AD was prompted by
report of failure of a second stage planet gear of the main gear box
(MGB). This AD requires replacement of the MGB particle detector
assembly with an improved, elongated MGB particle detector assembly, as
specified in a European Union Aviation Safety Agency (EASA) AD, which
is incorporated by reference. The FAA is issuing this AD to address the
unsafe condition on these products.

DATES: This AD is effective April 16, 2021.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of April 16,
2021.

ADDRESSES: For material incorporated by reference (IBR) in this AD,
contact the EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany;
phone: +49 221 8999 000; email<EMAIL_ADDRESS>internet:
www.easa.europa.eu. You may find this material on the EASA website at
https://ad.easa.europa.eu. You may view this material at the FAA,
Office of the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy.,
Room 6N-321, Fort Worth, TX 76177. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>. It is also available in
the AD docket on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2020-1107.

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-
1107; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, any comments received, and other information. The
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Mahmood G. Shah, Aviation Safety
Engineer, Fort Worth ACO Branch, FAA, 10101 Hillwood Pkwy., Fort Worth,
TX 76177; phone:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2019-0108, dated May 17, 2019 (EASA
AD 2019-0108) (also referred to as the Mandatory Continuing
Airworthiness Information, or the MCAI), to correct an unsafe condition
for all Airbus Helicopters Model SA330J helicopters.
    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to all Airbus Helicopters
Model SA330J helicopters. The NPRM published in the Federal Register on
December 4, 2020 (85 FR 78277). The NPRM was prompted by a report of
failure of a second stage planet gear of the MGB on a Model EC225
helicopter. Following a review of design similarities, it was
determined that such an event might also occur on Model SA330J
helicopters. The NPRM proposed to require replacement of the MGB
particle detector assembly with an improved, elongated MGB particle
detector assembly, as specified in an EASA AD.
    The FAA is issuing this AD to address failure of a second stage
planet gear of the MGB, which could lead to loss of control of the
helicopter. See the MCAI for additional background information.

Comments

    The FAA gave the public the opportunity to participate in
developing this final rule. The FAA received no comments on the NPRM or
on the determination of the cost to the public.

Conclusion

    The FAA reviewed the relevant data and determined that air safety
and the public interest require adopting this final rule as proposed,
except for minor editorial changes. The FAA has determined that these
minor changes:
     Are consistent with the intent that was proposed in the
NPRM for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    EASA AD 2019-0108 describes procedures for replacement of the MGB
particle detector assembly with an improved, elongated MGB particle
detector assembly. This material is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Costs of Compliance

    The FAA estimates that this AD affects 15 helicopters of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
                          Labor cost                              Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
4 work-hours x $85 per hour = $340...........................          $6,795           $7,135         $107,025
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

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

Regulatory Findings

    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:

2021-05-01 Airbus Helicopters: Amendment 39-21444; Docket No. FAA-
2020-1107; Project Identifier 2019-SW-049-AD.

(a) Effective Date

    This airworthiness directive (AD) is effective April 16, 2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all Airbus Helicopters Model SA330J
helicopters, certificated in any category.

(d) Subject

    Joint Aircraft System Component (JASC) Code 6320, Main rotor
gearbox.

(e) Reason

    This AD was prompted by a report of failure of a second stage
planet gear of the main gear box (MGB). The FAA is issuing this AD
to address failure of a second stage planet gear of the MGB, which
could lead to loss of control of the helicopter.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, European Union Aviation Safety Agency (EASA) AD
2019-0108, dated May 17, 2019 (EASA AD 2019-0108).

(h) Exceptions to EASA AD 2019-0108

    (1) Where EASA AD 2019-0108 refers to its effective date, this
AD requires using the effective date of this AD.
    (2) The ``Remarks'' section of EASA AD 2019-0108 does not apply
to this AD.
    (3) Where EASA AD 2019-0108 refers to flight hours (FH), this AD
requires using hours time-in-service.
    (4) Although the service information referenced in EASA 2019-
0108 specifies to discard certain parts, this AD does not include
that requirement.

(i) Special Flight Permit

    Special flight permits may be issued in accordance with 14 CFR
21.197 and 21.199 to operate the helicopter to a location where the
helicopter can be modified (if the operator elects to do so),
provided that no passengers are onboard.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Strategic Policy Rotorcraft Section, FAA, has
the authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the manager of the Strategic Policy Rotorcraft Section,
send it to: Manager, Strategic Policy Rotorcraft Section, FAA, 10101
Hillwood Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>.
Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    For more information about this AD, contact Mahmood G. Shah,
Aviation Safety Engineer, Fort Worth ACO Branch, FAA, 10101 Hillwood
Pkwy., Fort Worth, TX 76177; phone:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
(l) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) European Union Aviation Safety Agency (EASA) AD 2019-0108,
dated May 17, 2019.
    (ii) [Reserved]
    (3) For EASA AD 2019-0108, contact the EASA, Konrad-Adenauer-
Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email:
<EMAIL_ADDRESS>internet: www.easa.europa.eu. You may find this
EASA AD on the EASA website at https://ad.easa.europa.eu.
    (4) You may view this service information at the FAA, Office of
the Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room
6N-321, Fort Worth, TX 76177. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>. This material may be
found in the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-
2020-1107.

    (5) You may view this material that is incorporated by reference
at the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, email
<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on February 17, 2021.
Gaetano A. Sciortino,
Deputy Director for Strategic Initiatives, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2021-05143 Filed 3-11-21; 8:45 am]
BILLING CODE 4910-13-P