[Federal Register Volume 76, Number 95 (Tuesday, May 17, 2011)]
[Notices]
[Pages 28493-28498]
[FR Doc No: 2011-12017]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64470; File No. SR-NYSEArca-2011-23]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To List and Trade Shares of ProShares Short VIX
Short-Term Futures ETF, ProShares Short VIX Mid-Term Futures ETF,
ProShares Ultra VIX Short-Term Futures ETF, ProShares Ultra VIX Mid-
Term Futures ETF, ProShares UltraShort VIX Short-Term Futures ETF, and
ProShares UltraShort VIX Mid-Term Futures ETF Under NYSE Arca Equities
Rule 8.200, Commentary .02

May 11, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on April 28, 2011, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission (the
``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.
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    \11\ 17 CFR 200.30-3(a)(12).
    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 list and trade shares of ProShares Short
VIX Short-Term Futures ETF, ProShares Short VIX Mid-Term Futures ETF,
ProShares Ultra VIX Short-Term Futures ETF, ProShares Ultra VIX Mid-
Term Futures ETF, ProShares UltraShort VIX Short-Term Futures ETF, and
ProShares UltraShort VIX Mid-Term Futures ETF under NYSE Arca Equities
Rule 8.200, Commentary .02. The text of the proposed rule change is
available at the Exchange, the Commission's Public Reference Room, and
http://www.nyse.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 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
    NYSE Arca Equities Rule 8.200, Commentary .02 permits the trading
of Trust Issued Receipts (``TIRs'') either by listing or pursuant to
unlisted trading privileges (``UTP'').\3\ The Exchange proposes to list
and trade shares (``Shares'') of ProShares Short VIX Short-Term Futures
ETF, ProShares Short VIX Mid-Term Futures ETF (the ``Short Funds''),
ProShares Ultra VIX Short-Term Futures ETF, ProShares Ultra VIX Mid-
Term Futures ETF (the ``Ultra Funds''), ProShares UltraShort VIX Short-
Term Futures ETF, and ProShares UltraShort VIX Mid-Term Futures ETF
(the ``UltraShort Funds'' and, together with the Short and Ultra Funds,
the ``Funds'') under NYSE Arca Equities Rule 8.200, Commentary .02.\4\
The Funds seek, on a daily basis, to provide investment results (before
fees and expenses) that correspond to the inverse of the daily
performance, a multiple of the daily performance or an inverse multiple
of the daily performance of a benchmark that seeks to offer exposure to
market volatility through publicly traded futures markets. The
benchmark for ProShares Short VIX Short-Term Futures ETF, ProShares
Ultra VIX Short-Term Futures ETF, and ProShares UltraShort VIX Short-
Term Futures ETF is the S&P 500 VIX Short-Term Futures Index, and the
benchmark for ProShares Short VIX Mid-Term Futures ETF, ProShares Ultra
VIX Mid-Term Futures ETF, and ProShares UltraShort VIX Mid-Term Futures
ETF is the S&P 500 VIX Mid-Term Futures Index (each, an ``Index,'' and,
collectively, the ``Indexes'').\5\ The Funds will take long (in the
case of the Ultra Funds) and short (in the case of the Short and
UltraShort Funds) positions in futures contracts based on the Chicago
Board Options Exchange (``CBOE'') Volatility Index (``VIX'') and, under
limited circumstances, swap agreements (as further described herein),
to pursue their respective investment objectives. Each Fund also may
invest in cash or cash equivalents such as U.S. Treasury securities or
other high credit quality short-term fixed-income or similar securities
(including shares of money market funds, bank deposits, bank money
market accounts, certain variable rate-demand notes and repurchase
agreements collateralized by government securities) that may serve as
collateral for the futures contracts and swap agreements.
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    \3\ Commentary .02 to NYSE Arca Equities Rule 8.200 applies to
TIRs that invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in Commentary .02(b)(4) to NYSE Arca
Equities Rule 8.200, means any combination of investments, including
cash; securities; options on securities and indices; futures
contracts; options on futures contracts; forward contracts; equity
caps, collars and floors; and swap agreements.
    \4\ The Commission previously has approved listing on the
Exchange under Commentary .02 to NYSE Arca Equities Rule 8.200 of
certain securities issuers. See, e.g., Securities Exchange Act
Release Nos. 58457 (September 3, 2008), 73 FR 52711 (September 10,
2008) (SR-NYSEArca-2008-91) (order granting accelerated approval to
list on NYSE Arca of 14 ProShares funds); 63610 (December 27, 2010),
76 FR 199 (January 3, 2011) (SR-NYSEArca-2010-101) (order approving
listing and trading of the ProShares VIX Short-Term Futures ETF and
the ProShares VIX Mid-Term Futures ETF). See also Securities
Exchange Act Release No. 58968 (November 17, 2008), 73 FR 71082
(November 24, 2008) (SR-NYSEArca-2008-111) (order granting
accelerated approval of proposed rule change to amend NYSE Arca
Equities Rule 5.2(j)(6)(v) to add CBOE Volatility Index (VIX)
Futures to the definition of Futures Reference Asset).
    \5\ Standard & Poor's Financial Services LLC, the index sponsor
with respect to the Indexes, is not a broker-dealer and has
implemented procedures designed to prevent the use and dissemination
of material, non-public information regarding the Indexes.
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    Each Fund acquires exposure through VIX futures contracts traded on
the CBOE Futures Exchange (``CFE'') (``VIX Futures Contracts'') such
that each Fund has exposure intended to approximate the inverse of the
daily performance, a multiple of the daily performance or an inverse
multiple of the daily performance of its respective Index at the time
of the net asset value (``NAV'') calculation.\6\
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    \6\ Terms relating to the Funds, the Shares and the Indexes
referred to, but not defined, herein are defined in the Registration
Statement.
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    ProShare Capital Management LLC (``Sponsor''), a Maryland limited
liability company, serves as the Sponsor of ProShares Trust II (the
``Trust''). The Sponsor is a commodity pool operator and commodity
trading advisor.\7\ Brown

Brothers Harriman & Co. serves as the administrator (the
``Administrator''), custodian and transfer agent of the Funds and their
respective Shares. SEI Investments Distribution Co. (``Distributor'')
serves as Distributor of the Shares. Wilmington Trust Company, a
Delaware banking corporation, is the sole trustee of the Trust.
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    \7\ The Funds have filed a registration statement on Form S-3
under the Securities Act of 1933. See Post-Effective Amendment No. 4
dated April 13, 2011 (File No. 333-163511) to the Trust's
Registration Statement on Form S-3 (``Registration Statement''). The
description of the Funds and the Shares contained herein are based
on the Registration Statement.
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    According to the Registration Statement, each Fund seeks to achieve
its investment objective by investing under normal market conditions in
VIX Futures Contracts.\8\ In the event position accountability rules
are reached with respect to VIX Futures Contracts, the Sponsor, may, in
its commercially reasonable judgment, cause such Fund to obtain
exposure through swaps referencing the relevant Index or particular VIX
Futures Contracts, or invest in other futures contracts or swaps not
based on the particular VIX Futures Contracts if such instruments tend
to exhibit trading prices or returns that correlate with the Indexes or
any VIX Futures Contract and will further the investment objective of
such Fund.\9\ The Funds may also invest in swaps if the market for a
specific futures contract experiences emergencies (e.g., natural
disaster, terrorist attack or an act of God) or disruptions (e.g., a
trading halt or a flash crash) that prevent a Fund from obtaining the
appropriate amount of investment exposure to the affected VIX Futures
Contracts directly or to other futures contracts.\10\
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    \8\ The term ``under normal conditions'' includes, but is not
limited to, the absence of extreme volatility or trading halts in
the futures 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.
    \9\ To the extent practicable, the Funds will invest in swaps
cleared through the facilities of a centralized clearing house.
    \10\ According to the Registration Statement, the Sponsor will
also attempt to mitigate the Funds' credit risk by transacting only
with large, well-capitalized institutions using measures designed to
determine the creditworthiness of a counterparty. The Sponsor will
take various steps to limit counterparty credit risk, as described
in the Registration Statement.
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    According to the Registration Statement, if the Short Funds are
successful in meeting their objectives, their values (before fees and
expenses) should gain approximately as much on a percentage basis as
their respective Index when it declines on a given day. Conversely,
their values (before fees and expenses) should lose approximately as
much on a percentage basis as their respective Index when it rises on a
given day.
    If the Ultra Funds are successful in meeting their objectives,
their values (before fees and expenses) should gain approximately twice
as much on a percentage basis as their respective Index when it rises
on a given day. Conversely, their values (before fees and expenses)
should lose approximately twice as much on a percentage basis as their
respective Index when it declines on a given day.
    If the UltraShort Funds are successful in meeting their objectives,
their values (before fees and expenses) should gain approximately twice
as much on a percentage basis as their respective Index when it
declines on a given day. Conversely, their values (before fees and
expenses) should lose approximately twice as much on a percentage basis
as their respective Index when it rises on a given day.
    Each of the Funds uses investment techniques that include the use
of any one or a combination of VIX Futures Contracts and may, if
applicable, include swap agreements. The Funds' investment techniques
may involve a small investment relative to the amount of investment
exposure assumed and may result in losses exceeding the amounts
invested. Such techniques, particularly when used to create leverage,
may expose the Funds to potentially dramatic changes (losses or gains)
in the value of their investments and imperfect correlation between the
value of the investments and the security or Index.
    The Funds do not seek to achieve their stated investment objective
over a period of time greater than one day because mathematical
compounding prevents the Funds from perfectly achieving such results.
Accordingly, results over periods of time greater than one day
typically will not be a simple inverse correlation (-100%), multiple
correlation (+200%) or multiple inverse correlation (-200%) of the
period return of the corresponding Index and may differ significantly.
    According to the Registration Statement, each Fund is not actively
managed by traditional methods, which typically involve effecting
changes in the composition of a portfolio on the basis of judgments
relating to economic, financial and market considerations with a view
toward obtaining positive results under all market conditions. Rather,
the Sponsor seeks to cause the NAV to track the inverse of the daily
performance, a multiple of the daily performance or an inverse multiple
of the daily performance of an Index even during periods in which that
benchmark is flat or moving in a manner which causes the NAV of a Fund
to decline.
    In seeking to achieve each Fund's investment objective, the Sponsor
uses a mathematical approach to investing. Using this approach, the
Sponsor determines the type, quantity and mix of investment positions
that the Sponsor believes in combination should produce returns
consistent with such Fund's objective. The Sponsor relies upon a pre-
determined model to generate orders that result in repositioning the
Funds' investments in accordance with their respective investment
objectives.
VIX Futures Contracts
    The Indexes are comprised of, and the value of the Funds will be
based on, VIX Futures Contracts. VIX Futures Contracts are measures of
the market's expectation of the level of VIX at certain points in the
future, and as such will behave differently than current or spot VIX
values.\11\ The Funds are not linked to the VIX, and in many cases the
Indexes, and by extension the Funds, could significantly underperform
or outperform the VIX.
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    \11\ VIX is the ticker symbol for the CBOE Volatility Index, a
popular measure of implied volatility. According to the Registration
Statement, the goal of the VIX is to estimate the implied volatility
of the S&P 500 over the next 30 days. A relatively high level of the
VIX corresponds to a more volatile U.S. equity market as expressed
by more costly options on the S&P 500 Index. The VIX represents one
measure of the market's expectation of the volatility over the next
30 day period. It is a composite value of options on the S&P 500
Index. The formula used to calculate the composite value utilizes
current market prices for a series of out-of-the-money calls and
puts for the front month and second month expirations.
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    While the VIX represents a measure of the current expected
volatility of the S&P 500 over the next 30 days, the prices of VIX
Futures Contracts are based on the current expectation of what the
expected 30-day volatility will be at a particular time in the future
(on the expiration date). To illustrate, on January 31, 2011, the VIX
was 19.53 and the price of the February 2011 VIX Futures Contracts
expiring on February 16, 2011 was 19.10. In this example, the price of
the VIX represented the 30-day implied, or ``spot,'' volatility (the
volatility expected for the period from January 31 to March 2, 2011) of
the S&P 500, and the February VIX futures represented forward implied
volatility (the volatility expected for the period from February 16,
2011 to March 16, 2011) of the S&P 500.\12\ The VIX Futures

Contracts trade from 8:20 a.m. Eastern Time (``E.T.'') to 4:15 p.m.
E.T.
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    \12\ As of January 31, 2011, there was VIX Futures Contracts
open interest on CFE of 163,396 contracts with a value of open
interest of $3,461,984,900. Total CFE trading volume in 2010 in VIX
Futures Contracts was 4,402,616 contracts, with average daily volume
of 17,741 contracts. Total volume year-to-date (through January 31,
2011) is 779,493 contracts, with average daily volume of 38,975
contracts. (Source: Bloomberg and CBOE).
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The S&P 500 VIX Short-Term Futures Index and S&P 500 VIX Mid-Term
Futures Index
    According to the Registration Statement, the Indexes act as a
measure of volatility as reflected by the price of certain VIX Futures
Contracts (the ``Index Components''), with the price of each VIX
Futures Contract reflecting the market's expectation of future
volatility. Each Index seeks to reflect the returns that are
potentially available from holding an unleveraged long position in
certain VIX Futures Contracts.
    Unlike the Indexes, the VIX, which is not a benchmark for any Fund,
is calculated based on the prices of put and call options on the S&P
500, which are traded on the CBOE.
    The S&P 500 VIX Short-Term Futures Index employs rules for
selecting the Index Components and a formula to calculate a level for
the Index from the prices of these components. Specifically, the Index
Components represent the prices of the two near-term VIX futures
months, replicating a position that rolls the nearest month VIX Futures
Contract to the next month VIX Futures Contract on a daily basis in
equal fractional amounts. This results in a constant weighted average
maturity of one month. The roll period begins on the Tuesday prior to
the monthly CFE VIX Futures Contracts settlement date and runs through
the Tuesday prior to the subsequent month's CFE VIX Futures Contract
settlement date.
    The S&P 500 VIX Mid-Term Futures Index also employs rules for
selecting the Index Components and a formula to calculate the level of
the Index from the prices of these components. Specifically, the Index
Components represent the prices for four contract months of VIX Futures
Contracts, representing a market-based estimation of constant maturity,
five month forward implied VIX values. The S&P 500 VIX Mid-Term Futures
Index measures the return from a rolling long position in the fourth,
fifth, sixth and seventh month VIX Futures Contracts, and rolls
continuously throughout each month while maintaining positions in the
fifth and sixth month contracts. This results in a constant weighted
average maturity of five months.
Calculation of the Indexes
    The level of each Index is calculated in accordance with the method
described in the Registration Statement. The level of each Index will
be published at least every 15 seconds both in real time from 9:30 a.m.
to 4:15 p.m. E.T. and at the close of trading on each Business Day by
Bloomberg L.P. and Reuters.\13\
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    \13\ A ``Business Day'' means any day other than a day when any
of the NYSE, the NYSE Arca, the CBOE, or the CFE or other exchange
material to the valuation or operation of the Funds, or the
calculation of the VIX, options contracts underlying the VIX, VIX
Futures Contracts or the Indexes is closed for trading.
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    The Index Components comprising each Index represent the prices of
certain futures contracts on the VIX. Each Index takes a daily rolling
long position in contracts of specified maturities and is intended to
reflect the returns that are potentially available through an
unleveraged investment in those contracts. The S&P 500 VIX Short-Term
Futures Index measures the return from a rolling long position in the
first and second month VIX Futures Contracts. The Index rolls
continuously throughout each month from the first month VIX Futures
Contract into the second month VIX Futures Contract. The S&P 500 VIX
Mid-Term Futures Index measures the return from a rolling long position
in the fourth, fifth, sixth and seventh month VIX Futures Contracts.
The Index rolls continuously throughout each month from the fourth
month contract into the seventh month contract while maintaining
positions in the fifth month and sixth month contracts.
    The Indexes roll on a daily basis. According to the Registration
Statement, one of the effects of daily rolling is to maintain a
constant weighted average maturity for the underlying futures
contracts. Unlike equities, which typically entitle the holder to a
continuing stake in a corporation, futures contracts normally specify a
certain date for the delivery of the underlying asset or financial
instrument or, in the case of futures contracts relating to indices
such as the VIX, a certain date for payment in cash of an amount
determined by the level of the underlying index. The Indexes operate by
selling, on a daily basis, Index Components with a nearby settlement
date and purchasing Index Components with a longer-dated settlement
date. The roll for each contract occurs on each Business Day according
to a pre-determined schedule that has the effect of keeping constant
the weighted average maturity of the relevant Index Components. This
process is known as ``rolling'' a futures position, and each Index is a
``rolling index.'' The constant weighted average maturity for the
futures underlying the S&P 500 VIX Short-Term Futures Index is one
month and for the futures underlying the S&P 500 VIX Mid-Term Futures
Index, five months.
    Because the Indexes incorporate this process of rolling futures
positions on a daily basis, and the Funds, in general, also roll their
positions on a daily basis, the daily roll is not anticipated to be a
significant source of tracking error between a Fund and its respective
Index. The Indexes are based on VIX Futures Contracts and not the VIX,
and as such neither the Funds nor the Indexes are expected to track the
VIX.
Purchases and Redemptions of Creation Units
    The Funds will create and redeem Shares from time to time in one or
more Creation Units. A Creation Unit is a block of 50,000 Shares.
Except when aggregated in Creation Units, the Shares are not redeemable
securities.
    On any Business Day, an Authorized Participant may place an order
with the Distributor to create one or more Creation Units.\14\ The
total cash payment required to create each Creation Unit is the NAV of
50,000 Shares of each Fund on the purchase order date plus the
applicable transaction fee.
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    \14\ Authorized Participants have a cut-off time of 12 p.m. E.T.
to place creation and redemption orders.
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    The procedures by which an Authorized Participant can redeem one or
more Creation Units mirror the procedures for the purchase of Creation
Units. On any Business Day, an Authorized Participant may place an
order with the Distributor to redeem one or more Creation Units. The
redemption proceeds from a Fund consist of the cash redemption amount.
The cash redemption amount is equal to the NAV of the number of
Creation Unit(s) of a Fund requested in the Authorized Participant's
redemption order as of the time of the calculation of a Fund's NAV on
the redemption order date, less transaction fees.
Availability of Information Regarding the Shares
    The NAV for the Funds' Shares will be calculated by the
Administrator once a day and will be disseminated daily to all market
participants at the same time.\15\ The Exchange will make

available on its Web site daily trading volume of each of the Shares,
closing prices of such Shares, and number of Shares outstanding.
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    \15\ According to the Registration Statement, NAV means the
total assets of the Funds including, but not limited to, all cash
and cash equivalents or other debt securities less total liabilities
of the Funds, each determined on the basis of generally accepted
accounting principles in the United States, consistently applied
under the accrual method of accounting. Each Fund's NAV is
calculated at 4:15 p.m. E.T.
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    The intra-day, closing and settlement prices of the Index
Components are also readily available from the Web sites of the CFE
(http://www.cfe.cboe.com), automated quotation systems, published or
other public sources, or on-line information services such as Bloomberg
or Reuters. Complete real-time data for component futures underlying
the Indexes is available by subscription from Reuters and Bloomberg.
The CFE also provides delayed futures information on current and past
trading sessions and market news free of charge on its Web site. The
specific contract specifications for component futures underlying the
Indexes are also available on such Web sites, as well as other
financial informational sources. Quotation and last-sale information
regarding the Shares will be disseminated through the facilities of the
Consolidated Tape Association (``CTA''). In addition, the Funds' Web
site at http://www.proshares.com will display the end of day closing
Index levels and NAV.
    The Funds will provide Web site disclosure of portfolio holdings
daily and will include, as applicable, the notional value (in U.S.
dollars) of VIX Futures Contracts, other financial instruments, if any,
cash equivalents, and amount of cash held in the portfolio of the
Funds. This Web site disclosure of the portfolio composition of the
Funds will occur at the same time as the disclosure by the Funds of the
portfolio composition to Authorized Participants so that all market
participants are provided portfolio composition information at the same
time. Therefore, the same portfolio information will be provided on the
public Web site as well as in electronic files provided to Authorized
Participants. Accordingly, each investor will have access to the
current portfolio composition of the Funds through the Funds' Web site.
    In addition, in order to provide updated information relating to
the Funds for use by investors and market professionals, an updated
Indicative Optimized Portfolio Value (``IOPV'') will be calculated. The
IOPV is an indicator of the value of the VIX Futures Contracts and cash
and/or cash equivalents less liabilities of a Fund at the time the IOPV
is disseminated. NYSE Arca will calculate and disseminate every 15
seconds throughout the NYSE Arca Core Trading Session (9:30 a.m. to 4
p.m. E.T.) an updated IOPV. The IOPV will be calculated by the NYSE
Arca using the prior day's closing net assets of a Fund as a base and
updating throughout the trading day changes in the value of such Fund's
holdings.
    The IOPV is published on the NYSE Arca's Web site and is available
through on-line information services such as Bloomberg and Reuters.
    The IOPV disseminated during the Core Trading Session should not be
viewed as an actual real time update of the NAV, which is calculated
only once a day. The IOPV also should not be viewed as a precise value
of the Shares.
    The Exchange believes that dissemination of the IOPV provides
additional information regarding the Funds that is not otherwise
available to the public and is useful to professionals and investors in
connection with the related Shares trading on the Exchange or the
creation or redemption of such Shares.
    Additional information regarding the Funds and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosure policies, distributions
and taxes is included in the Registration Statement.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. E.T. The Exchange has
appropriate rules to facilitate transactions in the Shares during all
trading sessions. As provided in NYSE Arca Equities Rule 7.6,
Commentary .03, the minimum price variation (``MPV'') for quoting and
entry of orders in equity securities traded on the NYSE Arca
Marketplace is $0.01, with the exception of securities that are priced
less than $1.00 for which the MPV for order entry is $0.0001.
    The trading of the Shares will be subject to NYSE Arca Equities
Rule 8.200, Commentary .02(e), which sets forth certain restrictions on
ETP Holders acting as registered Market Makers in TIRs to facilitate
surveillance. See ``Surveillance'' below for more information.
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. Trading may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which trading is not occurring in the underlying futures contracts, or
(2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present. In addition,
trading in Shares will be subject to trading halts caused by
extraordinary market volatility pursuant to the Exchange's ``circuit
breaker'' rule \16\ or by the halt or suspension of trading of the
underlying futures contracts.
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    \16\ See NYSE Arca Equities Rule 7.12.
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    The Exchange represents that the Exchange may halt trading during
the day in which an interruption to the dissemination of the IOPV, the
value of an Index, the VIX or the value of the underlying VIX Futures
Contracts occurs. If an interruption to the dissemination of the IOPV,
the value of an Index, the VIX or the value of the underlying VIX
Futures Contracts persists past the trading day in which it occurred,
the Exchange will halt trading no later than the beginning of the
trading day following the interruption. In addition, if the Exchange
becomes aware that the NAV with respect to the Shares is not
disseminated to all market participants at the same time, it will halt
trading in the Shares until such time as the NAV is available to all
market participants.
    The Funds will meet the initial and continued listing requirements
applicable to TIRs in NYSE Arca Equities Rule 8.200 and Commentary .02
thereto. With respect to application of Rule 10A-3 under the Act,\17\
the Funds must be in compliance with NYSE Arca Equities Rule 5.3 and
Rule 10A-3 under the Act. A minimum of 100,000 Shares of each of the
Funds will be outstanding as of the start of trading on the Exchange.
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    \17\ 17 CFR 240.10A-3.
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Suitability
    Currently, NYSE Arca Equities Rule 9.2(a) (Diligence as to
Accounts) provides that an ETP Holder, before recommending a
transaction in any security, must have reasonable grounds to believe
that the recommendation is suitable for the customer based on any facts
disclosed by the customer as to its other security holdings and as to
its financial situation and needs. Further, the rule provides, with a
limited exception, that prior to the execution of a transaction
recommended to a non-institutional customer, the ETP Holder must make
reasonable efforts to obtain information concerning the customer's
financial status, tax status, investment objectives, and any other
information

that such ETP Holder believes would be useful to make a recommendation.
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders of the suitability requirements of NYSE Arca Equities Rule
9.2(a) in an Information Bulletin. Specifically, ETP Holders will be
reminded in the Information Bulletin that, in recommending transactions
in the Shares, they must have a reasonable basis to believe that (1)
the recommendation is suitable for a customer given reasonable inquiry
concerning the customer's investment objectives, financial situation,
needs, and any other information known by such member, and (2) the
customer can evaluate the special characteristics, and is able to bear
the financial risks, of an investment in the Shares. In connection with
the suitability obligation, the Information Bulletin will also provide
that members must make reasonable efforts to obtain the following
information: (1) The customer's financial status; (2) the customer's
tax status; (3) the customer's investment objectives; and (4) such
other information used or considered to be reasonable by such member or
registered representative in making recommendations to the customer.
    In addition, FINRA has implemented increased sales practice and
customer margin requirements for FINRA members applicable to leveraged
ETFs (which include the Shares) and options on leveraged ETFs, as
described in FINRA Regulatory Notices 09-31 (June 2009), 09-53 (August
2009) and 09-65 (November 2009) (the ``FINRA Regulatory Notices''). ETP
Holders that carry customer accounts will be required to follow the
FINRA guidance set forth in these notices.
    As disclosed in the Registration Statement, the Funds seek
leveraged, inverse, or leveraged inverse returns on a daily basis.
Unlike conventional stock-based indexes and funds, it is not expected
that the VIX Futures Indexes or the Funds will generally rise over
time. In addition, the Exchange's Information Bulletin regarding the
Funds, described below, will provide information regarding the
suitability of an investment in the Shares, as stated in the
Registration Statement.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products, including TIRs, to
monitor trading in the Shares. The Exchange represents that these
procedures are adequate to properly monitor Exchange trading of the
Shares in all trading sessions and to deter and detect violations of
Exchange rules and applicable Federal securities laws.
    The Exchange's current trading surveillances focus on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations. The Exchange is able to
obtain information regarding trading in the Shares, options, futures or
options on futures on Shares through ETP Holders, in connection with
such ETP Holders' proprietary or customer trades through ETP Holders
which they effect on any relevant market. The Exchange can obtain
market surveillance information, including customer identity
information, with respect to transactions occurring on the exchanges
that are members of the Intermarket Surveillance Group (``ISG''),
including the CBOE and CFE, or with which the Exchange has entered into
a comprehensive surveillance sharing agreement.\18\ A list of ISG
members is available at http://www.isgportal.org.\19\
---------------------------------------------------------------------------

    \18\ Telephone call among Michael Cavalier, Chief Counsel,
Exchange, and Tim Malinowski, Senior Director, Global Index and
Exchange Traded Funds, Exchange, and Ed Cho and Kristie Diemer,
Special Counsels, Division, Commission, on May 11, 2011, clarifying
the Exchange's ability to obtain surveillance information.
    \19\ The Exchange notes that not all components of the Funds'
holdings may trade on markets that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement.
---------------------------------------------------------------------------

    In addition, with respect to any Fund's holdings of futures
contracts traded on exchanges, not more than 10% of the weight of such
futures contracts in the aggregate shall consist of components whose
principal trading market is not a member of ISG or is a market with
which the Exchange does not have a comprehensive surveillance sharing
agreement.
    The Exchange also has a general policy prohibiting the distribution
of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
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: (1) 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; (2)
the procedures for purchases and redemptions of Shares in Creation
Baskets and Redemption Baskets (and that Shares are not individually
redeemable); (3) 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; (4) 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 (5) trading information.
    The Information Bulletin will advise ETP Holders, prior to the
commencement of trading, of the prospectus delivery requirements
applicable to the Funds. The Exchange notes that investors purchasing
Shares directly from the Funds will receive a prospectus. ETP Holders
purchasing Shares from the Funds for resale to investors will deliver a
prospectus to such investors. The Information Bulletin will reference
the FINRA Regulatory Notices regarding sales practice and customer
margin requirements for FINRA members applicable to leveraged ETFs and
options on leveraged ETFs. The Information Bulletin will also discuss
any exemptive, no-action and interpretive relief granted by the
Commission from any rules under the Act.
    In addition, the Information Bulletin will reference that the Funds
are subject to various fees and expenses described in the Registration
Statement. The Information Bulletin will also reference that the
Commodity Futures Trading Commission has regulatory jurisdiction over
futures contracts traded on U.S. markets.
    The Information Bulletin will also disclose the trading hours of
the Shares of the Funds and that the NAV for the Shares is calculated
after 4:15 p.m. E.T. each trading day. The Bulletin will disclose that
information about the Shares of the Funds is publicly available on the
Funds' Web site.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \20\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to

prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule 8.200
and Commentary .02 thereto. The Exchange has in place surveillance
procedures that are adequate to properly monitor trading in the Shares
in all trading sessions and to deter and detect violations of Exchange
rules and applicable Federal securities laws. The Exchange may obtain
information via ISG from other exchanges that are members of ISG or
with which the Exchange has entered into a comprehensive surveillance
sharing agreement. Under normal market conditions, the Funds will
invest in VIX Futures Contracts, which are traded on CFE, an ISG
member. The intra-day futures prices, closing price and settlement
prices of the futures contracts held by the Funds are also available
from the CFE, automated quotation systems, published or other public
sources, or on-line information services. Quotation and last-sale
information for the Shares will be available via CTA. Each Fund's total
portfolio composition will be disclosed on the Funds' Web site or
another relevant Web site.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information is publicly available regarding the
Funds and the Shares, thereby promoting market transparency. One or
more major market data vendors will disseminate the level of each Index
at least every 15 seconds both in real time from 9:30 a.m. to 4:15 p.m.
E.T. and at the close of trading on each Business Day. The NAV per
Share will be calculated daily and made available to all market
participants at the same time. One or more major market data vendors
will disseminate for the Funds on a daily basis information with
respect to the recent NAV per Share and Shares outstanding. NYSE Arca
will calculate and disseminate every 15 seconds throughout the NYSE
Arca Core Trading Session an updated IOPV. Trading in Shares of the
Funds will be halted if the circuit breaker parameters in NYSE Arca
Equities Rule 7.12 have been reached or because of market conditions or
for reasons that, in the view of the Exchange, make trading in the
Shares inadvisable. Moreover, prior to the commencement of trading, the
Exchange will inform its ETP Holders in an Information Bulletin of the
special characteristics and risks associated with trading the Shares.
The Information Bulletin will also reference the FINRA Regulatory
Notices regarding sales practice and customer margin requirements for
FINRA members applicable to leveraged ETFs and options on leveraged
ETFs.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that will
enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding the Funds' holdings,
IOPV, and quotation and last-sale information for the Shares.

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.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2011-23 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2011-23. 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 Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of the filing will also 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 No. SR-
NYSEArca-2011-23 and should be submitted on or before June 7, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-12017 Filed 5-16-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 213 (Monday, November 8, 2021)]
[Rules and Regulations]
[Pages 61705-61708]
[FR Doc No: 2021-24158]

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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R10-OAR-2019-0574; FRL-8814-02-R10]

Approval and Promulgation of Air Quality Implementation Plans;
Washington; Low Emission Vehicle Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is approving a
revision to the Washington State Implementation Plan (SIP) pertaining
to adoption by reference of a Low Emission Vehicle (LEV) program by the
State of Washington. The Clean Air Act (CAA) grants authority to the
EPA to adopt Federal standards relating to the control of emissions
from new motor vehicles, and generally preempts states from doing so.
However, the CAA provides California the ability to adopt and enforce
its own new motor vehicle emission standards, as long as the EPA
approves California's standards via a preemption waiver. The CAA also
allows other states to adopt California's new motor vehicle emission
standards for which the EPA has granted such a

waiver providing other relevant criteria are met. Washington adopted
California's LEV emission standards in 2005, effective with new
vehicles sold in model year 2009. Washington subsequently amended its
new motor vehicle emissions program to incorporate California's LEV
updates to its program. The purpose of this SIP revision is to
implement programs to reduce vehicle emissions that contribute to
formation of ground level ozone and fine particulate matter. Washington
did not submit provisions related to greenhouse gas emissions from new
motor vehicles or zero-emission vehicles requirements for inclusion in
the SIP. The EPA is approving and incorporating by reference
Washington's LEV SIP revision, as it relates to criteria pollutants, in
accordance with the requirements of the CAA.

DATES: This final rule is effective December 8, 2021.

ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-R10-OAR-2019-0574. All documents in the docket are
listed on the https://www.regulations.gov website. Although listed in
the index, some information is not publicly available, e.g.,
Confidential Business Information or other information the disclosure
of which is restricted by statute. Certain other material, such as
copyrighted material, is not placed on the internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available at https://www.regulations.gov, or please
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section for additional availability information.

FOR FURTHER INFORMATION CONTACT: Jeff Hunt, EPA Region 10, 1200 Sixth
Avenue--Suite 155, Seattle, WA 98101, at<PHONE_NUMBER>, or
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, wherever ``we,''
``us,'' or ``our'' is used, it means the EPA.

I. Background

    On August 18, 2021, we proposed to approve and incorporate by
reference the provisions of Washington Administrative Code, Chapter
173-423 Low Emission Vehicles submitted by the Department of Ecology
(86 FR 46169). The reasons for our proposed approval were stated in the
proposed rulemaking and will not be re-stated here. The public comment
period for our proposed approval ended on September 17, 2021, and we
received one comment in support of the proposed approval. Therefore, we
are finalizing our action as proposed.

II. Final Action

    The EPA is approving, and incorporating by reference into the
Washington SIP, the following provisions of Washington Administrative
Code (WAC), Chapter 173-423 Low Emission Vehicles submitted by the
Department of Ecology:
     WAC 173-423-010, state effective December 29, 2012;
     WAC 173-423-020, state effective December 31, 2005;
     WAC 173-423-025, state effective December 31, 2005;
     WAC 173-423-030, state effective December 31, 2005;
     WAC 173-423-040, except 173-423-040(3), state effective
December 29, 2012;
     WAC 173-423-050, except 173-423-050(2)(g), state effective
December 29, 2012;
     WAC 173-423-060, state effective December 29, 2012;
     WAC 173-423-070, except the incorporation by reference of
California code sections 1961.1 and 1961.3, state effective January 27,
2019;
     WAC 173-423-080, state effective December 29, 2012;
     WAC 173-423-100, state effective December 29, 2012;
     WAC 173-423-110, state effective December 29, 2012;
     WAC 173-423-120, state effective December 29, 2012;
     WAC 173-423-130, state effective December 31, 2005;
     WAC 173-423-140, state effective December 31, 2005; and
     WAC 173-423-150, state effective December 31, 2005.

III. Incorporation by Reference

    In this document, the EPA is finalizing regulatory text in an EPA
final rule that includes incorporation by reference. In accordance with
requirements of 1 CFR 51.5, the EPA is finalizing the incorporation by
reference of the regulations described in section II of this preamble.
The EPA has made, and will continue to make, these materials generally
available through https://www.regulations.gov and at the EPA Region 10
Office (please contact the person identified in the FOR FURTHER
INFORMATION CONTACT section of this preamble for more information).
    Therefore, these materials have been approved by the EPA for
inclusion in the SIP, have been incorporated by reference by the EPA
into that plan, are fully federally enforceable under sections 110 and
113 of the CAA as of the effective date of the final rule of the EPA's
approval, and will be incorporated by reference by the Director of the
Federal Register in the next update to the SIP compilation.\1\
---------------------------------------------------------------------------

    \1\ 62 FR 27968 (May 22, 1997).
---------------------------------------------------------------------------

IV. Statutory and Executive Order Review

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
     Does not provide the EPA with the discretionary authority
to address, as appropriate, disproportionate human health or
environmental effects, using practicable and legally permissible
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).

    The SIP is not approved to apply on any Indian reservation land in
Washington except as specifically noted below and is also not approved
to apply in any other area where the EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the rule does not have tribal implications and will not impose
substantial direct costs on tribal governments or preempt tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
Washington's SIP is approved to apply on non-trust land within the
exterior boundaries of the Puyallup Indian Reservation, also known as
the 1873 Survey Area. Under the Puyallup Tribe of Indians Settlement
Act of 1989, 25 U.S.C. 1773, Congress explicitly provided state and
local agencies in Washington authority over activities on non-trust
lands within the 1873 Survey Area. Consistent with EPA policy, the EPA
provided a consultation opportunity to the Puyallup Tribe in a letter
dated July 15, 2019.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. The EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by January 7, 2022. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: October 29, 2021.
Michelle L. Pirzadeh,
Acting Regional Administrator, Region 10.

    For the reasons set forth in the preamble, 40 CFR part 52 is
amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  42 U.S.C. 7401 et seq.

Subpart WW--Washington

0
2. In Sec.  52.2470(c), Table 1 is amended by adding the heading
Washington Administrative Code, Chapter 173-423--Low Emission
Vehicles'' immediately after the entry for ``173-415-070'' titled and
adding entries for ``173-423-010'', ``173-423-020'', ``173-423-025'',
``173-423-030'', ``173-423-040'', ``173-423-050'', ``173-423-060'',
``173-423-070'', ``173-423-080'', ``173-423-100'', ``173-423-110'',
``173-423-120'', ``173-423-130'', ``173-423-140'', and ``173-423-150''
under the newly added heading to read as follows:

Sec.  52.2470  Identification of plan.

* * * * *
    (c) * * *

                                     Table 1--Regulations Approved Statewide
 [Not applicable in Indian reservations (excluding non-trust land within the exterior boundaries of the Puyallup
    Indian Reservation) and any other area where the EPA or an Indian tribe has demonstrated that a tribe has
                                                  jurisdiction]
----------------------------------------------------------------------------------------------------------------
                                                      State
     State citation            Title/subject        effective      EPA approval date           Explanations
                                                       date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                     Washington Administrative Code, Chapter 173-423--Low Emission Vehicles
----------------------------------------------------------------------------------------------------------------
173-423-010.............  Purpose................     12/29/12  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-020.............  Applicability..........     12/31/05  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-025.............  Effective Date.........     12/31/05  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-030.............  Incorporation by            12/31/05  11/8/21, [INSERT
                           Reference.                            FEDERAL REGISTER
                                                                 CITATION].
173-423-040.............  Definitions and             12/29/12  11/8/21, [INSERT         Except 173-423-040(3).
                           Abbreviations.                        FEDERAL REGISTER
                                                                 CITATION].
173-423-050.............  Requirement to Meet         12/29/12  11/8/21, [INSERT         Except 173-423-
                           California Vehicle                    FEDERAL REGISTER         050(2)(g).
                           Emission Standards.                   CITATION].
173-423-060.............  Exemptions.............     12/29/12  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-070.............  Emission Standards,          1/27/19  11/8/21, [INSERT         Except the
                           Warranty, Recall and                  FEDERAL REGISTER         incorporation by
                           Other California                      CITATION].               reference of
                           Provisions Adopted by                                          California code
                           Reference.                                                     sections 1961.1 and
                                                                                1961.3.
173-423-080.............  Fleet Average               12/29/12  11/8/21, [INSERT
                           Nonmethane Organic Gas                FEDERAL REGISTER
                           (NMOG) and NMOG Plus                  CITATION].
                           NOX Exhaust Emission
                           Requirements,
                           Reporting and
                           Compliance..
173-423-100.............  Manufacturer Delivery       12/29/12  11/8/21, [INSERT
                           Reporting Requirements.               FEDERAL REGISTER
                                                                 CITATION].
173-423-110.............  Warranty Requirements..     12/29/12  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].

173-423-120.............  Recalls................     12/29/12  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-130.............  Surveillance...........     12/31/05  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-140.............  Enforcement............     12/31/05  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
173-423-150.............  Severability...........     12/31/05  11/8/21, [INSERT
                                                                 FEDERAL REGISTER
                                                                 CITATION].
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2021-24158 Filed 11-5-21; 8:45 am]
BILLING CODE 6560-50-P