[Federal Register Volume 78, Number 161 (Tuesday, August 20, 2013)]
[Proposed Rules]
[Pages 51123-51126]
[FR Doc No: 2013-20309]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2013-0734; Directorate Identifier 2012-SW-080-AD]
RIN 2120-AA64

Airworthiness Directives; Bell Helicopter Textron

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to supersede an existing airworthiness directive
(AD) for Bell Helicopter Textron (Bell) Model 222, 222B, 222U, 230, and
430 helicopters. The existing AD currently requires inspecting parts of
the main rotor hydraulic servo actuator (servo actuator) for certain
conditions and

replacing any unairworthy parts before further flight. Since we issued
the AD, a new stainless steel piston rod has been manufactured. We
propose requiring the installation of a servo actuator assembly with
this piston rod and setting an interval for the next overhaul at 10,000
hours time-in-service (TIS) or 10 years, whichever comes first. The
proposed actions are intended to detect pitting or penetration of the
base metal of the piston rod that could lead to the piston rod's
failure, the servo actuator's failure, and the loss of helicopter
control.

DATES: We must receive comments on this proposed AD by October 21,
2013.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Docket: Go to http://www.regulations.gov. Follow the online instructions for sending your
comments electronically.
     Fax:<PHONE_NUMBER>.
     Mail: Send comments to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.
     Hand Delivery: Deliver to the ``Mail'' address between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov or in person at the Docket Operations Office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this proposed AD, the foreign
authority's AD, the economic evaluation, any comments received and
other information. The street address for the Docket Operations Office
(telephone<PHONE_NUMBER>) is in the ADDRESSES section. Comments will be
available in the AD docket shortly after receipt.
    For service information identified in this proposed AD, contact
Bell Helicopter Textron, 12,800 Rue de l'Avenir, Mirabel, Quebec
J7J1R4; telephone<PHONE_NUMBER> or<PHONE_NUMBER>; fax<PHONE_NUMBER>;
or at http://www.bellcustomer.com/files/. You may review service
information at the FAA, Office of the Regional Counsel, Southwest
Region, 2601 Meacham Blvd., Room 663, Fort Worth, Texas 76137.

FOR FURTHER INFORMATION CONTACT: Matt Wilbanks, Aviation Safety
Engineer, Rotorcraft Certification Office, Rotorcraft Directorate, FAA,
2601 Meacham Blvd., Fort Worth, Texas 76137; telephone<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to participate in this rulemaking by submitting
written comments, data, or views. We also invite comments relating to
the economic, environmental, energy, or federalism impacts that might
result from adopting the proposals in this document. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. To
ensure the docket does not contain duplicate comments, commenters
should send only one copy of written comments, or if comments are filed
electronically, commenters should submit only one time.
    We will file in the docket all comments that we receive, as well as
a report summarizing each substantive public contact with FAA personnel
concerning this proposed rulemaking. Before acting on this proposal, we
will consider all comments we receive on or before the closing date for
comments. We will consider comments filed after the comment period has
closed if it is possible to do so without incurring expense or delay.
We may change this proposal in light of the comments we receive.

Discussion

    On November 24, 2010, we published AD 2010-19-51, Amendment 39-
16523 (75 FR 71540), for Bell Model 222, 222B, 222U, 230, and 430
helicopters. AD 2010-19-51 requires inspecting parts of the servo
actuator for certain conditions and replacing any unairworthy parts
before further flight. AD 2010-19-51 was prompted by a collective servo
actuator malfunction. A subsequent investigation revealed that the
output piston rod assembly had fractured at the threaded end because of
corrosion cracking. The investigation also showed a nonconforming grind
relief on a separate piston rod. The actions of AD 2010-19-51 were
intended to detect corrosion or a nonconforming piston rod that, if not
corrected, could result in the failure of the piston rod, failure of
the servo actuator, and subsequent loss of the helicopter.

Actions Since Existing AD Was Issued

    Since we issued AD 2010-19-51 (75 FR 71540, November 24, 2010),
Transport Canada Civil Aviation (TCCA), which is the aviation authority
for Canada, issued Canadian AD No. CF-2010-29R1, dated July 26, 2012,
to correct an unsafe condition for Bell Model 222, 222B, 222U, 230, and
430 helicopters with servo actuator part number (P/N) 222-382-001-107.
TCCA AD No. CF-2010-29R1 supersedes AD No. CF-2010-29, dated August 26,
2010. The original TCCA AD required a one-time inspection of the servo
actuator for corrosion or a crack, and if needed, repair of the servo
actuator. AD No. CF-2010-29 also set intervals for a required overhaul
of the servo actuator, depending on the primer or plating on the piston
rod.
    TCCA's subsequent AD No. CF-2010-29R1 requires an inspection of the
servo actuator and either overhauling or replacing the piston rod with
a stainless steel piston rod. Replacement of the piston rod extends the
overhaul interval of the servo actuator to 10,000 hours TIS or 10
years, whichever comes first. AD No. CF-2010-29R1 allows different
compliance times for overhaul or replacement of the piston rod,
depending on the condition of the piston rod when inspected.

FAA's Determination

    These helicopters have been approved by the aviation authority of
Canada and are approved for operation in the United States. Pursuant to
our bilateral agreement with Canada, TCCA, its technical
representative, has notified us of the unsafe condition described in
its AD. We are proposing this AD because we evaluated all known
relevant information and determined that an unsafe condition is likely
to exist or develop on other products of the same type design.

Related Service Information

    We reviewed Bell Alert Service Bulletin (ASB) 222-11-111 for Model
222 and 222B helicopters, ASB 222U-11-82 for Model 222U helicopters,
ASB 230-11-43 for Model 230 helicopters, and ASB 430-11-46 for Model
430 helicopters, all Revision A and all dated June 22, 2012. The ASBs
contain, and require compliance with, Woodward HRT Service Bulletin
141600-67-03, dated February 14, 2012, to upgrade the servo actuator by
replacing the piston rod and then re-identifying the servo actuator
dash number with ``-111FM.'' The compliance time for upgrading the
servo actuator varies depending on the color and amount of corrosion
found and type of plating on the piston rod. The Bell ASBs also provide
an alternative inspection and procedure for servo actuator P/N 222-382-
001-107 which have not reached certain hours TIS and where the servo
actuator cannot be upgraded.
    TCCA classified these ASBs as mandatory and issued AD No. CF-2010-
29R1, dated July 26, 2012, to

ensure the continued airworthiness of these helicopters.

Proposed AD Requirements

    This proposed AD would supersede AD 2010-19-51, Amendment 39-16523
(75 FR 71540, November 24, 2010) and would require within 5 hours time-
in-service (TIS), inspecting servo actuator, P/N 222-382-001-107, using
a 10X or higher power magnifying glass to determine whether the piston
rod has any pitting or penetration of the base metal.
    If the piston rod has pitting or penetration of the base metal, the
proposed AD would require, before further flight, replacing the servo
actuator with servo actuator P/N 222-382-001-111 or P/N 222-382-001-
111FM. Thereafter, the proposed AD would require overhauling servo
actuator P/N 222-382-001-111 or P/N 222-382-001-111FM at intervals not
to exceed 10 years or 10,000 hours TIS, whichever comes first.

Differences Between the Proposed AD and the TCCA AD

    This proposed AD differs from the TCCA AD as follows:
    The TCCA AD sets three different timelines or time-in-service
requirements for the overhaul or upgrade of the applicable servo
actuators, depending on the damage and type of material applied to
protect the piston rod.
    We would require replacing, before further flight, the piston rod
if it has pitting or any penetration of the base metal.
    The TCCA AD requires returning parts to the manufacturer, and this
proposed AD would not.

Costs of Compliance

    We estimate that this proposed AD would affect 146 helicopters of
U.S. Registry and that labor costs average $85 an hour. Based on these
estimates, we expect the following costs:
     Inspecting the servo actuators would require 4 work-hours
for a labor cost of $340 per helicopter, and $49,640 for the U.S.
fleet.
     Overhauling the servo actuators would require 8 work-hours
for a labor cost of $680. Parts would cost $11,900 for a total cost of
$12,580 per helicopter.
     Replacing the servo actuators would require 8 hours work-
hours for a labor cost of $680. Parts would cost $35,700 for a total
cost of $36,380 per helicopter.

Authority for This Rulemaking

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

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed, I certify this proposed regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979);
    3. Will not affect intrastate aviation in Alaska to the extent that
it justifies making a regulatory distinction; and
    4. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared an economic evaluation of the estimated costs to comply
with this proposed AD and placed it in the AD docket.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by removing Amendment 39-16523, 75 FR
71540, and adding the following new airworthiness directive (AD):

Bell Helicopter Textron: Docket No. FAA-2013-0734; Directorate
Identifier 2012-SW-080-AD.

(a) Applicability

    This AD applies to Bell Helicopter Textron Canada (Bell) Model
222, 222B, 222U, 230, and 430 helicopters, with a main rotor
hydraulic servo actuator (servo actuator), part number (P/N) 222-
382-001-107, installed, certificated in any category.

(b) Unsafe Condition

    This AD defines the unsafe condition as pitting or any other
penetration of the base metal on the output piston rod assembly.
This condition could lead to failure of the piston rod, failure of
the servo actuator, and subsequent loss of helicopter control.

(c) Affected ADs

    This AD supersedes AD 2010-19-51, Amendment 39-16523 (75 FR
71540, November 24, 2010).

(d) Comments Due Date

    We must receive comments by October 21, 2013.

(e) Compliance

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

(f) Required Actions

    (1) Within 5 hours time-in-service (TIS), inspect servo
actuator, P/N 222-382-001-107, using a 10X or higher power
magnifying glass to determine whether the piston rod has any pitting
or penetration of the base metal.
    (2) If the piston rod has pitting or any penetration of the base
metal, replace with servo actuator P/N 222-382-001-111 or P/N 222-
382-001-111FM, before further flight. Thereafter, overhaul servo
actuator P/N 222-382-001-111 or P/N 222-382-001-111FM at intervals
not to exceed 10 years or 10,000 hours TIS, whichever comes first.

 (g) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Safety Management Group, FAA, may approve AMOCs
for this AD. Send your proposal to: Matt Wilbanks, Aviation Safety
Engineer, Rotorcraft Certification Office, Rotorcraft Directorate,
FAA, 2601 Meacham Blvd., Fort Worth, Texas 76137; telephone (817)
222-5110; email<EMAIL_ADDRESS>    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, we suggest that you
notify your principal inspector, or lacking a principal inspector,
the manager of the local flight standards district office or
certificate holding district office before operating any aircraft
complying with this AD through an AMOC.

(h) Additional Information

    (1) The subject of this AD is addressed in Transport Canada
Civil Aviation AD No. CF-2010-29R1, dated July 26, 2012. A copy of
this document is available for review in Docket No. FAA-2013-0734 on
the Internet at http://www.regulations.gov.
    (2) Bell Alert Service Bulletin (ASB) No. 222-11-111 for Model
222 and 222B helicopters, ASB No. 222U-11-82 for Model 222U
helicopters, ASB No. 230-11-43 for Model 230 helicopters, and ASB
No. 430-11-46 for Model 430 helicopters, all Revision A and all
dated June 22, 2012, contain information to replace and overhaul the
servo actuator. You may review service information at the FAA,
Office of the Regional Counsel, Southwest Region, 2601 Meacham
Blvd., Room 663, Fort Worth, Texas 76137.

(i) Subject

    Joint Aircraft Service Component (JASC) Code: 6730, Rotorcraft
Servo System.

    Issued in Fort Worth, Texas, on August 12, 2013.
Kim Smith,
Directorate Manager, Rotorcraft Directorate, Aircraft Certification
Service.
[FR Doc. 2013-20309 Filed 8-19-13; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 155 (Tuesday, August 11, 2020)]
[Notices]
[Pages 48591-48593]
[FR Doc No: 2020-17455]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89480; File No. SR-NYSEArca-2020-69]

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

August 5, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on July 30, 2020, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE Arca Options Fee Schedule
(``Fee Schedule'') to extend the waiver of certain Floor-based fixed
fees through August 2020. The Exchange proposes to implement the fee
change effective July 30, 2020. The proposed rule change is available
on the Exchange's website at www.nyse.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of this filing is to modify the Fee Schedule to extend
the waiver of certain Floor-based fixed fees through August 2020 for
market participants that have been unable to resume their Floor
operations to a certain capacity level, as discussed below. The
Exchange proposes to implement the fee change effective July 30, 2020.
    On March 18, 2020, the Exchange announced that it would temporarily
close the Trading Floor, effective Monday, March 23, 2020, as a
precautionary measure to prevent the potential spread of COVID-19.
Following the temporary closure of the Trading Floor, the Exchange
waived certain Floor-based fixed fees for April and May 2020 (the ``fee
waiver'').\4\ Although the Trading Floor partially reopened on May 4,
2020 and Floor-based open outcry activity is supported, certain
participants have been unable to resume pre-Floor closure levels of
operations. As a result, the Exchange extended the fee waiver through
June and July 2020, but only for Floor Broker firms that were unable to
operate at more than 50% of their March 2020 on-Floor staffing levels
and for Market Maker firms that have vacant or ``unmanned'' Podia for
the entire month due to COVID-19 related considerations (the
``Qualifying Firms'').\5\ Because the Trading Floor will continue to
operate with reduced capacity, the Exchange proposes to extend the
prior fee waiver for Qualifying Firms through August 2020.
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    \4\ See Securities Exchange Act Release Nos. 88596 (April 8,
2020), 85 FR 20796 (April 14, 2020) (SR-NYSEArca-2020-29); 88812
(May 5, 2020), 85 FR 27787 (May 11, 2020) (SR-NYSEArca-2020-38).
    \5\ See Securities Exchange Act Release Nos. 89038 (June 10,
2020), 85 FR 36447 (June 16, 2020) (SR-NYSEArca-2020-52); 89242
(June 7, 2020), 85 FR 42037 (July 13, 2020) (SR-NYSEArca-2020-60).
See also Fee Schedule, NYSE Arca OPTIONS: FLOOR and EQUIPMENT and
CO-LOCATION FEES.
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    Specifically, the proposed fee waiver covers the following fixed
fees for Qualifying Firms, which relate directly to Floor operations,
are charged only to Floor participants and do not apply to participants
that conduct business off-Floor:
     Floor Booths;
     Market Maker Podia;
     Options Floor Access;
     Wire Services; and
     ISP Connection.\6\
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    \6\ See proposed Fee Schedule, NYSE Arca OPTIONS: FLOOR and
EQUIPMENT and CO-LOCATION FEES (providing that certain fees are
waived for Qualifying Firms ``for June through August 2020'').
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    Like the previous fee waiver for Qualifying Firms, the proposed fee
change is designed to reduce monthly costs for Qualifying Firms whose
operations continue to be disrupted despite the fact that the Trading
Floor has partially reopened. In reducing this monthly financial
burden, the proposed change would allow Qualifying Firms to reallocate
funds to assist with the cost of shifting and maintaining their prior
fully-staffed on-Floor operations to off-Floor and recoup losses as a
result of the partial reopening. Absent this change, such participants
may experience an unexpected increase in the cost of doing business on
the Exchange.\7\ The Exchange believes that all Qualifying Firms would
benefit from this proposed fee change.
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    \7\ The Exchange will refund participants of the Floor Broker
Prepayment Program for any prepaid August 2020 fees that are waived.
See proposed Fee Schedule, FLOOR BROKER FIXED COST PREPAYMENT
INCENTIVE PROGRAM (the ``FB Prepay Program'') (providing that ``the
Exchange will refund certain of the prepaid Eligible Fixed costs
that were waived for June through August 2020 for Qualifying Firms
as defined, and set forth in, NYSE Arca OPTIONS: FLOOR and EQUIPMENT
and CO-LOCATION FEES'').
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\9\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange operates in a highly competitive market. The
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its

broader forms that are most important to investors and listed
companies.'' \10\
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    \10\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
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    There are currently 16 registered options exchanges competing for
order flow. Based on publicly-available information, and excluding
index-based options, no single exchange has more than 16% of the market
share of executed volume of multiply-listed equity and ETF options
trades.\11\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity & ETF options
order flow. More specifically, in June 2020, the Exchange had slightly
over 10% market share of executed volume of multiply-listed equity &
ETF options trades.\12\
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    \11\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: https://www.theocc.com/market-data/volume/default.jsp.
    \12\ Based on OCC data, see id., in 2019, the Exchange's market
share in equity-based options increased from 9.51% for the month of
June 2019 to 10.65% for the month of June 2020.
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    This proposed fee change is reasonable, equitable, and not unfairly
discriminatory because it would reduce monthly costs for Qualifying
Firms whose operations have been disrupted despite the fact that the
Trading Floor has partially reopened because of the social distancing
requirements and/or other health concerns related to resuming operation
on the Floor. In reducing this monthly financial burden, the proposed
change would allow Qualifying Firms to reallocate funds to assist with
the cost of shifting and maintaining their prior fully-staffed on-Floor
operations to off-Floor and recoup losses as a result of the partial
reopening of the Floor. Absent this change, such participants may
experience an unexpected increase in the cost of doing business on the
Exchange. The Exchange believes that all Qualifying Firms would benefit
from this proposed fee change.
    The Exchange believes the proposed rule change is an equitable
allocation of its fees and credits as it merely continues the previous
fee waiver for Qualifying Firms, which affects fees charged only to
Floor participants and does not apply to participants that conduct
business off-Floor. The Exchange believes it is an equitable allocation
of fees and credits to extend the fee waiver for Qualifying Firms
because such firms have either less than half of their Floor staff
(March 2020) levels or have vacant podia--and this reduction in
physical capacity on the Floor impacts the speed, volume and efficiency
with which these firms can operate, which is to their detriment.
    The Exchange believes that the proposal is not unfairly
discriminatory because the proposed continuation of the fee waiver
would affect all similarly-situated market participants on an equal and
non-discriminatory basis.
    Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.

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

    In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed rule change would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The Exchange believes that the proposed changes
would encourage the continued participation of Qualifying Firms,
thereby promoting market depth, price discovery and transparency and
enhancing order execution opportunities for all market participants. As
a result, the Exchange believes that the proposed change furthers the
Commission's goal in adopting Regulation NMS of fostering integrated
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.'' \13\
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    \13\ See Reg NMS Adopting Release, supra note 10, at 37499.
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    Intramarket Competition. The proposed change, which continues the
fee waiver for Qualifying Firms, is designed to reduce monthly costs
for those Floor participants whose operations continue to be impacted
despite the fact that the Trading Floor has partially reopened. In
reducing this monthly financial burden, the proposed change would allow
Qualifying Firms to reallocate funds to assist with the cost of
shifting and maintaining their previously on-Floor operations to off-
Floor. Absent this change, such Qualifying Firms may experience an
unintended increase in the cost of doing business on the Exchange,
given that the Floor has only reopened in a limited capacity. The
Exchange believes that the proposed waiver of fees for Qualifying Firms
would not impose a disparate burden on competition among market
participants on the Exchange because off-Floor market participants are
not subject to these Floor-based fixed fees and Floor-based firms that
are not subject to the extent of staffing shortfalls as the Qualifying
Firms--i.e., have at least 50% of their March 2020 staffing levels on
the Floor and/or have no vacant Podia during August 2020, do not face
the same operational disruption and potential financial impact during
the partial reopening of the Floor.
    Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily favor one
of the 16 competing option exchanges if they deem fee levels at a
particular venue to be excessive. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges and to attract order flow to the Exchange. Based on publicly-
available information, and excluding index-based options, no single
exchange currently has more than 16% of the market share of executed
volume of multiply-listed equity and ETF options trades.\14\ Therefore,
currently no exchange possesses significant pricing power in the
execution of multiply-listed equity & ETF options order flow. More
specifically, in June 2020, the Exchange had slightly over 10% market
share of executed volume of multiply-listed equity & ETF options
trades.\15\
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    \14\ See supra note 11.
    \15\ Based on OCC data, supra note 12, the Exchange's market
share in equity-based options was 9.51% for the month of June 2019
and 10.65% for the month of June 2020.
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    The Exchange believes that the proposed rule change reflects this
competitive environment because it waives fees for Qualifying Firms and
is designed to reduce monthly costs for Floor participants whose
operations continue to be disrupted despite the fact that the Trading
Floor has partially reopened. In reducing this monthly financial
burden, the proposed change would allow affected participants to
reallocate funds to assist with the cost of shifting and maintaining
their prior fully-staffed on-Floor operations to off-Floor. Absent this
change, Qualifying Firms may experience an unintended increase in the
cost of doing business on the Exchange, which would make the Exchange a
less competitive venue on which to trade as compared to other options
exchanges.

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

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

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

    The foregoing rule change is effective upon filing pursuant to
Section

19(b)(3)(A) \16\ of the Act and subparagraph (f)(2) of Rule 19b-4 \17\
thereunder, because it establishes a due, fee, or other charge imposed
by the Exchange.
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \18\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2020-69 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2020-69. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2020-69, and should be
submitted on or before September 1, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-17455 Filed 8-10-20; 8:45 am]
BILLING CODE 8011-01-P