[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Notices]
[Pages 42013-42016]
[FR Doc No: 2016-15172]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78122; File No. SR-BatsBYX-2016-12]

Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees

June 22, 2016.
    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 June 8, 2016, Bats BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to BYX Rules
15.1(a) and (c) (``Fee Schedule'') to: (i) Add fee codes NA and NB;
(ii) reduce the rebate for fee codes BB, N, and W; (iii) add Add Volume
Tier 2 under footnote 1; and (iv) add Remove Volume Tier under footnote
1.
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    \5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant 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 Exchange proposes to amend its Fee Schedule to: (i) Add fee
codes NA and NB; (ii) reduce the rebate for fee codes BB, N, and W;
(iii) add Add Volume Tier 2 under footnote 1; and (iv) add Remove
Volume Tier under footnote 1.
Fee Codes NA and NB
    The Exchange previously filed a proposed rule change with the
Commission to identify Non-Displayed Orders \6\ as such when routed to
an away Trading Center.\7\ The Exchange intends to implement this
functionality on June 1, 2016.\8\ Because other Trading Centers
typically provide different rebates or fees with respect to non-
displayed liquidity the Exchange proposes to amend its Fee Schedule to
add fee codes NA and NB, which would apply to routed Non-Displayed
Orders. Proposed fee code NA would be applied to Non-Displayed Orders
that are routed to and add liquidity on Bats EDGX Exchange, Inc.
(``EDGX''), Bats BZX Exchange, Inc. (``BZX''), the New York

Stock Exchange, Inc. (``NYSE''), NYSE Arca, Inc. (``NYSE Arca''), NYSE
MKT LLC (``NYSE MKT''), or the Nasdaq Stock Market LLC (``Nasdaq'').\9\
Orders that yield fee code NA would not be charged a fee nor receive a
rebate in both securities priced at or above $1.00 or below $1.00.
Proposed fee code NB would be applied to Non-Displayed Orders that are
routed to and add liquidity on any exchange not listed in proposed fee
code NA. Orders that yield fee code NB would be charged a fee of
$0.0030 per share in securities priced at or above $1.00 and 0.30% of
the trade's total dollar value in securities priced below $1.00.
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    \6\ See Exchange Rule 11.9(c)(11).
    \7\ The Exchange notes that the Exchange also amended its rules
to route Reserve Orders (as defined in Rule 11.9(c)(1)) as such to
other Trading Centers. See Securities Exchange Act 77187 (February
19, 2016), 81 FR 9556 (February 25, 2016) (SR-BYX-2016-04). Non-
Displayed Orders and Reserve Orders would be handled in accordance
with the rules of the Trading Center to which they are routed. Id.
This proposal does not impact the routing of Reserve Orders.
    \8\ See Bats Announces Support for Hidden Post-to-Away Routed
Orders,available at http://cdn.batstrading.com/resources/release_notes/2016/Bats-Announces-Support-for-Hidden-Post-to-Away-Routed-Orders.pdf.
    \9\ Today, all orders that are routed to post to an away market
are routed for display on such market and receive the following
rates: (i) Rebate of $0.0015 per share for orders routed to the
NYSE; (ii) rebate of $0.0021 per share for Tapes A and C securities
and a rebate of $0.0022 per share for Tape B securities for orders
routed to NYSE Arca; (iii) rebate of $0.0015 per share for orders
routed to NYSE MKT; (iv) rebate of $0.0015 per share for orders
routed to Nasdaq; and (v) a rebate of $0.0020 per share for orders
routed to EDGX or BZX. See the Exchange's Fee Schedule available at
http://batstrading.com/support/fee_schedule/byx/. These rates
generally represent a pass through of the rate that Bats Trading,
Inc. (``Bats Trading''), the Exchange's affiliated routing broker-
dealer, is provided for adding displayed liquidity at NYSE, NYSE
Arca, NYSE MKT, Nasdaq, EDGX, or BZX when it does not qualify for a
volume tiered reduced fee or enhanced rebate.
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Fee Codes BB, N, and W
    Fee codes BB, N, and W are appended to orders that are to receive
the standard rebate of $0.00150 per share for removing liquidity in
securities priced at or above $1.00.\10\ Fee code W is appended to
order in Tape A Securities, fee code BB is appended to orders in Tape B
securities, and fee code N is appended to orders in Tape C Securities.
The Exchange now proposes to reduce the standard rebate provided for
under fee codes, BB, N, and W from $00.150 per share to $0.00100 per
share. The Exchange also proposes to amend the Fee Schedule's Standard
Rates table to reflect the amended standard removal rate under fee
codes BB, N, and W.
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    \10\ Order that remove liquidity in securities priced below
$1.00 are charged 0.10% of the trades total dollar value. See the
Exchange's Fee Schedule available at http://batstrading.com/support/fee_schedule/byx/. The Exchange does not proposes to amend the
standard rate for securities priced below $1.00.
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Add Volume Tier 2
    Currently, the Exchange charges a standard rate of $0.0018 per
share for orders that add liquidity. Members may be charged a reduced
fee of $0.0014 per share under footnote 1 where they have an ADAV \11\
equal to or greater than 0.30% of the TCV.\12\ The Exchange proposes to
name this existing tier under footnote 1 the ``Add Volume Tier 1'' and
add a new tier called the ``Add Volume Tier 2''. Under the proposed Add
Volume Tier 2, Members would be eligible to receive a reduced fee of
$0.0013 per share where they have an ADAV equal to or greater than
0.40% of the TCV.
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    \11\ As provided in the Fee Schedule, ``ADAV'' means average
daily added volume calculated as the number of shares added per day.
    \12\ As provided in the Fee Schedule, ``TCV'' means total
consolidated volume calculated as the volume reported by all
exchanges and trade reporting facilities to a consolidated
transaction reporting plan for the month for which the fees apply.
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Add Remove Volume Tier
    Currently, the Exchange does not offer an enhanced rebate for
removing liquidity. Such orders would receive the standard rebate under
fee codes BB, N, and W described above. The Exchange now proposes to
provide an enhanced rebate for removing liquidity by adding the Remove
Volume Tier under footnote 1. Under the proposed Remove Volume Tier, a
Member's orders that yield fee codes BB, N, or W would receive a rebate
of $0.00150 per share where the Member has an ADV equal to or greater
than 0.05% of the TCV.
    The Exchange also proposes to append footnote 1 to fee codes BB, N,
and W as orders that yield those fee codes would be eligible to receive
the enhanced rebate of $0.00150 provided for by the proposed Remove
Volume Tier. With the addition of the Remove Volume Tier, the Exchange
proposes to amend the title of footnote 1 from ``Add Volume Tier'' to
``Add/Remove Volume Tiers''.
Implementation Date
    The Exchange proposes to implement these amendments to its Fee
Schedule effective immediately.\13\
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    \13\ The Exchange initially filed the proposed fee change on May
31, 2016 (SR-BatsBYX-2016-11). On June 8, 2016, the Exchange
withdrew SR-BatsBYX-2016-11 and submitted this filing.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\14\ in general, and
furthers the objectives of Section 6(b)(4),\15\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive. The proposed rule changes reflect a competitive
pricing structure designed to incent market participants to direct
their order flow to the Exchange. The Exchange believes that the
proposed fee codes are equitable and non-discriminatory in they would
apply uniformly to all Members. The Exchange believes the rates remains
competitive with those charged by other venues and, therefore,
reasonable and equitably allocated to Members.
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    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(4).
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    In particular, the Exchange believes that proposed fee codes NA and
NB represent an equitable allocation of reasonable dues, fees, and
other charges. The proposed fees are similar to and based on the fees
and rebates assessed or provided to Bats Trading when routing to away
Trading Centers. For instance, like proposed fee code NA, the NYSE,
NYSE Arca, and Nasdaq charge no fee nor provide a rebate for non-
displayed orders that add liquidity.\16\ In addition, the exchanges
that would be covered by proposed fee code NB charge a fee of up to
$0.0030 per share to add liquidity.\17\ In addition, the proposed rate
for fee code NB is equal to or greater than similar routing fees
charged by other exchanges. For example, the NYSE, NYSE MKT, Nasdaq,
and BZX charge a fee of $0.0030 per share and NYSE Arca charges a fee
of $0.0035 per share regardless of which destination the order is
routed.\18\
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    \16\ See the NYSE fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf (dated
May 23, 2016); the NYSE Arca fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (dated May 23, 2016); and the Nasdaq
fee schedule available at http://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2. The Exchange notes that NYSE MKT,
EDGX, and BZX provide a rebate of $0.0016, $ 0.0015, and $0.0017 per
share respectively for non-displayed orders that add liquidity. See
the NYSE MKT fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/nyse-mkt/NYSE_MKT_Equities_Price_List.pdf
(dated May 23, 2016); the EDGX fee schedule available at http://batstrading.com/support/fee_schedule/edgx/; and the BZX fee schedule
available at http://batstrading.com/support/fee_schedule/bzx/.
    \17\ See the Bats EDGA Exchange, Inc. fee schedule available at
http://batstrading.com/support/fee_schedule/edga/; and the Nasdaq
BX, Inc. fee schedule available at http://www.nasdaqtrader.com/Trader.aspx?id=bx_pricing. The Exchange notes that it currently does
not provide for routing orders to post on the Chicago Stock
Exchange, Inc. or the National Stock Exchange, Inc.
    \18\ See supra note 16. Nasdaq charges a fee of $0.0035 per
share for routed orders that are directed to another market. See the
Nasdaq fee schedule at id.
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    The Exchange notes that routing through Bats Trading is voluntary.
The Exchange is providing a service to allow Members to post Non-
Displayed Orders to these destinations and that those Members seeking
to post such orders to

away destinations may connect to those destinations directly and be
charged the fee or provided the rebate from that destination.
Therefore, the Exchange believes the rates for proposed fee codes NA
and NB are equitable and reasonable because they are related to the
rates provided by the away exchange and reasonably account for the
routing service provided for by the Exchange. Lastly, the Exchange
believes that the proposed amendments are non-discriminatory because it
applies uniformly to all Members and that the proposed rates are
directly related to rates provided by the destinations to which the
orders may be routed.
    The Exchange also believes that proposed changes to fee codes BB,
N, and W represent an equitable allocation of reasonable dues, fees,
and other charges because the Exchange's standard rebate for removing
liquidity continues to be higher than that provided by other exchanges.
For example, Nasdaq BX, Inc. BX provides a standard rebate of $0.0006
per share for orders that remove liquidity.\19\
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    \19\ See the Nasdaq BX, Inc. fee schedule available at http://www.nasdaqtrader.com/Trader.aspx?id=bx_pricing.
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    Volume-based rebates such as that proposed herein have been widely
adopted by equities and options exchanges and are equitable because
they are open to all Members on an equal basis and provide additional
benefits or discounts that are reasonably related to: (i) The value to
an exchange's market quality; (ii) associated higher levels of market
activity, such as higher levels of liquidity provision and/or growth
patterns; and (iii) the introduction of higher volumes of orders into
the price and volume discovery processes. The Exchange believes that
the proposed tiers are a reasonable, fair and equitable, and not
unfairly discriminatory allocation of fees and rebates, because they
will provide Members with an additional incentive to reach certain
thresholds on the Exchange.
    In particular, the Exchange believes the addition of the Add Volume
Tier 2 and Remove Volume Tier are a reasonable means to encourage
Members to increase their liquidity on the Exchange. The Exchange
further believes that the proposed tiers represents an equitable
allocation of reasonable dues, fees, and other charges because the
thresholds necessary to achieve the tiers encourages Members to add
liquidity to the BYX Book \20\ each month. Specifically, the Exchange
notes that the criteria and reduced rate under Add Volume Tier 2 are
equitable and reasonable as compared to other tiers offered by the
Exchange. For example, under Add Volume Tier 1, Members may receive a
reduced fee of $0.0013 per share where they have an ADAV equal to or
greater than 0.30% of the TCV. To receive a reduced fee of $0.0014 per
share under the proposed Add Volume Tier 2, a Member must have an ADAV
equal to or greater than 0.40% of the TCV. Therefore, the Exchange
believes the proposed Add Volume Tier 2 is consistent with Section
6(b)(4) \21\ of the Act as the more stringent criteria correlates with
the tier's reduced rate.
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    \20\ See Exchange Rule 1.5(e).
    \21\ 15 U.S.C. 78f(b)(4).
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    The Exchange also believes the proposed Remove Volume Tier's
criteria and rate are reasonable when compare to tier provided for by
other exchanges. For example, Nasdaq BX, Inc. BX also provides an
enhanced rebate of $0.0015 per share but require different, but
similar, criteria.\22\ In order to achieve the tier, Nasdaq BX, Inc.
requires their members to remove at least 0.05% of TCV.\23\ Therefore,
the Exchange believes the proposed Remove Volume Tier is consistent
with Section 6(b)(4) \24\ of the Act.
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    \22\ See the Nasdaq BX, Inc. fee schedule available at http://www.nasdaqtrader.com/Trader.aspx?id=bx_pricing.
    \23\ Id.
    \24\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe its proposed amendment to its Fee
Schedule would impose any burden on competition that is not necessary
or appropriate in furtherance of the purposes of the Act. The Exchange
does not believe that the proposed changes represents a significant
departure from previous pricing offered by the Exchange or pricing
offered by the Exchange's competitors. Additionally, Members may opt to
disfavor the Exchange's pricing if they believe that alternatives offer
them better value. For example, routing through Bats Trading is
voluntary and Members seeking to post such orders to away destinations
may connect to those destinations directly and be charged the fee or
provide the rebate from that destination. Accordingly, the Exchange
does not believe that the proposed changes will impair the ability of
Members or competing venues to maintain their competitive standing in
the financial markets. The Exchange believes that its proposal would
not burden intramarket competition because the proposed rate would
apply uniformly to all Members.
    The Exchange does not believe that the proposed new tiers and
standard removal rates would burden competition, but instead, enhances
competition, as they are intended to increase the competitiveness of
and draw additional volume to the Exchange. As stated above, the
Exchange notes that it operates in a highly competitive market in which
market participants can readily direct order flow to competing venues
if they deem fee structures to be unreasonable or excessive. The
proposed changes are generally intended to draw additional liquidity to
the Exchange. The Exchange does not believe the proposed tiers and
standard rates would burden intramarket competition as they would apply
to all Members uniformly.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \25\ and paragraph (f) of Rule 19b-4
thereunder.\26\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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    \25\ 15 U.S.C. 78s(b)(3)(A).
    \26\ 17 CFR 240.19b-4(f).
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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-BatsBYX-2016-12 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 BatsBYX-2016-12. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BatsBYX-2016-12, and should
be submitted on or before July 19, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-15172 Filed 6-27-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)]
[Rules and Regulations]
[Pages 3306-3308]
[FR Doc No: 2016-00658]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-0669; Directorate Identifier 2013-SW-038-AD;
Amendment 39-18373; AD 2016-01-14]
RIN 2120-AA64

Airworthiness Directives; Airbus Helicopters Deutschland GmbH
(Previously Eurocopter Deutschland GmbH) Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for Airbus
Helicopters Deutschland GmbH (AHD) (previously Eurocopter Deutschland
GmbH) Model MBB-BK 117 A-1, A-3, A-4, B-1, B-2, C-1, and C-2
helicopters. This AD requires an initial and recurring inspection of
the N2 control arm and, depending on the outcome of the inspection,
repairing or replacing the N2 control arm. This AD was prompted by a
report of a heavily corroded and broken N2 control arm. The actions of
this AD are intended to detect corrosion, a crack, or a scratch in the
N2 control arm, which could lead to failure of the N2 control arm, a
drop in rotor speed, and subsequent loss of control of the helicopter.

DATES: This AD is effective February 25, 2016.
    The Director of the Federal Register approved the incorporation by
reference of certain documents listed in this AD as of February 25,
2016.

ADDRESSES: For service information identified in this final rule,
contact Airbus Helicopters, Inc., 2701 N. Forum Drive, Grand Prairie,
Texas 75052; telephone<PHONE_NUMBER> or<PHONE_NUMBER>; fax (972) 641-
3775; or at http://www.airbushelicopters.com/techpub. You may review
the referenced service information at the FAA, Office of the Regional
Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-321, Fort
Worth, TX 76177.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov in Docket No. FAA-2015-0669 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 AD, the
European Aviation Safety Agency (EASA) AD, any incorporated-by-
reference service information, the economic evaluation, any comments
received, and other information. The street address for the Docket
Operations Office (phone:<PHONE_NUMBER>) is U.S. Department of
Transportation, Docket Operations Office, M-30, West Building Ground
Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: James Blyn, Aviation Safety Engineer,
Regulations and Policy Group, Rotorcraft Directorate, FAA, 10101
Hillwood Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>; email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    On March 24, 2015, at 80 FR 15530, the Federal Register published
our notice of proposed rulemaking (NPRM), which proposed to amend 14
CFR part 39 by adding an AD that would apply to AHD Model MBB-BK 117 A-
1, A-3, A-4, B-1, B-2, C-1, and C-2 helicopters. The NPRM proposed to
require repetitive visual inspections of the N2 control arm for
corrosion, a crack, and a scratch. The NPRM also proposed to require
repairing any N2 control arm with corrosion or a scratch less than
0.020 inch in depth and replacing any N2 control arm with exfoliation
corrosion, a crack, or with corrosion or a scratch 0.020 inch or
greater in depth. The proposed requirements were intended to detect
corrosion, a crack, or a scratch in the N2 control arm, which could
lead to failure of the N2 control arm, a drop in rotor

speed, and subsequent loss of control of the helicopter.
    The NPRM was prompted by AD No. 2013-0154, dated July 22, 2013,
issued by EASA, which is the Technical Agent for the Member States of
the European Union, to correct an unsafe condition for the Eurocopter
Deutschland GmbH (now AHD) Model MBB-BK117 A-1, A-3, A-4, B-1, B-2, C-
1, and C-2 helicopters. EASA advises of an incident with a Model MBB-
BK117 C-2 helicopter that dropped rotor speed (RPM) within the green
range and could not be recovered to nominal value because of a heavily
corroded and broken N2 control arm. EASA advises that under certain
flight conditions and power demands, a broken N2 control arm can cause
a significant and non-recoverable drop in RPM. As a result, EASA AD No.
2013-0154 requires an initial and repetitive inspection of the N2
control arm for corrosion, damage, and scratches, and depending on the
outcome of the inspection, repairing or replacing the N2 control arm.
    Since the NPRM was issued, the FAA Southwest Regional Office has
relocated and a group email address has been established for requesting
an FAA alternative method of compliance for a helicopter of foreign
design. We have revised the contact information throughout this final
rule to reflect the new address and new email address.

Comments

    We gave the public the opportunity to participate in developing
this AD, but we did not receive any comments on the NPRM (80 FR 15530,
March 24, 2015).

FAA's Determination

    These helicopters have been approved by the aviation authority of
Germany and are approved for operation in the United States. Pursuant
to our bilateral agreement with Germany, EASA, its technical
representative, has notified us of the unsafe condition described in
the EASA AD. We are issuing this AD because we evaluated all
information provided by EASA and determined the unsafe condition exists
and is likely to exist or develop on other helicopters of these same
type designs and that air safety and the public interest require
adopting the AD requirements as proposed except for the minor editorial
changes described above. These changes are consistent with the intent
of the proposals in the NPRM (80 FR 15530, March 24, 2015) and will not
increase the economic burden on any operator nor increase the scope of
this AD.

Differences Between This AD and the EASA AD

    The EASA AD allows a noncumulative tolerance of 3 months in the
compliance time for the initial inspection on helicopters with less
than 2 years from the date of first flight and for the repetitive
inspections, and this AD does not.

Related Service Information Under 1 CFR Part 51

    Eurocopter issued ASB MBB-BK117-60A-126 for Model MBB-BK 117 A-1,
A-3, A-4, B-1, B-2, and C-1 helicopters, and ASB MBB-BK117 C-2-76A-005
for Model MBB-BK 117 C-2 helicopters, both Revision 0, and both dated
June 24, 2013. The Eurocopter ASBs specify inspecting the N2 control
arm for corrosion, damage, and scratches and, depending on the outcome
of the inspection, either repairing or replacing the affected parts.
The Eurocopter ASBs also specify performing the inspection with each 12
month inspection until the N2 inspection requirements are incorporated
into the aircraft maintenance manual.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects 441 helicopters of U.S. Registry.
We estimate that operators may incur the following costs in order to
comply with this AD. Labor costs are estimated at $85 per work-hour.
Inspecting the N2 control arm requires about one work-hour for an
estimated cost of $85 per helicopter and $37,485 for the U.S. fleet per
inspection cycle. Repairing the N2 control arm requires about four
work-hours for an estimated labor cost of $340. Replacing the N2
control arm requires about three work-hours for an estimated labor cost
of $255. Parts to replace the N2 control arm for Model MBB-BK 117 A-1,
A-3, A-4, B-1, B-2, and C-1 helicopters cost about $2,743 for a total
estimated cost of $2,998. Parts to replace the N2 control arm for a
Model MBB-BK 117 C-2 helicopter cost about $4,500 for a total estimated
cost of $4,755.

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 helicopters identified in this
rulemaking action.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under 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 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.

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

2016-01-14 Airbus Helicopters Deutschland GmbH (AHD) (Previously

Eurocopter Deutschland GmbH): Amendment 39-18373; Docket No. FAA-
2015-0669; Directorate Identifier 2013-SW-038-AD.

(a) Applicability

    This AD applies to AHD Model MBB-BK 117 A-1, A-3, A-4, B-1, B-2,
C-1, and C-2 helicopters, certificated in any category.

(b) Unsafe Condition

    This AD defines the unsafe condition as corrosion, a crack, or a
scratch on an N2 control arm. This condition could lead to failure
of the N2 control arm, resulting in a reduction in rotor speed and
subsequent loss of control of the helicopter.

(c) Effective Date

    This AD becomes effective February 25, 2016.

(d) Compliance

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

(e) Required Actions

    For helicopters that have not reached 2 years from the date of
first flight, within 1 year or before reaching 2 years from the date
of first flight, whichever occurs first; and for helicopters that
have reached or exceeded 2 years from the date of first flight,
within 50 hours TIS:
    (1) Visually inspect each N2 control arm for corrosion, a crack,
and a scratch as depicted in Figure 1 of Eurocopter Alert Service
Bulletin (ASB) MBB-BK117-60A-126 or ASB MBB-BK117 C-2-76A-005, both
Revision 0, and both dated June 24, 2013, as applicable to your
model helicopter.
    (i) If an N2 control arm has corrosion or a scratch less than
0.5 millimeter (mm) (0.020 inch) in depth, before further flight,
remove the corrosion and repair the scratch.
    (ii) If an N2 control arm has any exfoliation corrosion, a
crack, or has corrosion or a scratch 0.5 mm (0.020 inch) or greater
in depth, before further flight, replace the N2 control arm.
    (2) Thereafter, perform the requirements in paragraph (e)(1) of
this AD at intervals not to exceed 12 months.

(f) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Safety Management Group, FAA, may approve AMOCs
for this AD. Send your proposal to: James Blyn, Aviation Safety
Engineer, Regulations and Policy Group, Rotorcraft Directorate, FAA,
10101 Hillwood Pkwy., Fort Worth, TX 76177; 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.

(g) Additional Information

    The subject of this AD is addressed in European Aviation Safety
Agency (EASA) AD No. 2013-0154, dated July 22, 2013. You may view
the EASA AD on the Internet at http://www.regulations.gov in Docket
No. FAA-2015-0669.

(h) Subject

    Joint Aircraft Service Component (JASC) Code: Engine Controls,
7600.

(i) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Eurocopter Alert Service Bulletin (ASB) MBB-BK117-60A-126,
Revision 0, dated June 24, 2013.
    (ii) Eurocopter ASB MBB-BK117 C-2-76A-005, Revision 0, dated
June 24, 2013.
    (3) For Eurocopter service information identified in this final
rule, contact Airbus Helicopters, Inc., 2701 N. Forum Drive, Grand
Prairie, Texas 75052; telephone<PHONE_NUMBER> or<PHONE_NUMBER>;
fax<PHONE_NUMBER>; or at http://www.airbushelicopters.com/techpub.
    (4) You may view this service information at FAA, Office of the
Regional Counsel, Southwest Region, 10101 Hillwood Pkwy., Room 6N-
321, Fort Worth, TX 76177. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Fort Worth, Texas, on January 6, 2016.
Bruce E. Cain,
Acting Manager, Rotorcraft Directorate, Aircraft Certification Service.
[FR Doc. 2016-00658 Filed 1-20-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: December 9, 2005 (Volume 70, Number 236)]
[Notices]
[Page 73314-73315]
[DOCID:fr09de05-132]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549.

Extension: Rule 31a-1; SEC File No. 270-173; OMB Control No. 3235-
0178.

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 [44 U.S.C. 3501-3520], the Securities and Exchange Commission
(``Commission'') is soliciting comments on the collections of
information summarized below. The Commission plans to submit these
existing collections of information to the Office of Management and
Budget (``OMB'') for extension.
    Rule 31a-1 [17 CFR 270.31a-1] under the Investment Company Act of
1940 (the ``Act'') is entitled ``Records to be maintained by registered
investment companies, certain majority-owned subsidiaries thereof, and
other persons having transactions with registered investment
companies.'' Rule 31a-1 requires registered investment companies
(``funds''), and every underwriter, broker, dealer, or investment
adviser that is a majority-owned subsidiary of a fund, to maintain and
keep current accounts, books, and other documents which constitute the
record forming the basis for financial

statements required to be filed pursuant to section 30 of the Act [15
U.S.C. 80a-29] and of the auditor's certificates relating thereto. The
rule lists specific records to be maintained by funds. The rule also
requires certain underwriters, brokers, dealers, depositors, and
investment advisers to maintain the records that they are required to
maintain under federal securities laws.
    There are approximately 4300 investment companies registered with
the Commission, all of which are required to comply with rule 31a-1.
For purposes of determining the burden imposed by rule 31a-1, the
Commission staff estimates that each fund is divided into approximately
four series, on average, and that each series is required to comply
with the recordkeeping requirements of rule 31a-1. Based on
conversations with fund representatives, it is estimated that rule 31a-
1 imposes an average burden of approximately 1500 hours annually per
series for a total of 6000 annual hours per fund. The estimated total
annual burden for all 4300 funds subject to the rule therefore is
approximately 25,800,000 hours. Based on conversations with fund
representatives, however, the Commission staff estimates that even
absent the requirements of rule 31a-1, 90 percent of the records
created pursuant to the rule are the type that generally would be
created as a matter of normal business custom and to prepare financial
statements.
    The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even a representative survey or study. An agency may
not conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid OMB
control number.
    Written comments are requested on: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information has practical
utility; (b) the accuracy of the Commission's estimate of the burden[s]
of the collection of information; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques or other
forms of information technology. Consideration will be given to
comments and suggestions submitted in writing within 60 days of this
publication.
    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Office of Information Technology, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549.

    Dated: November 30, 2005.
Jonathan G. Katz,
Secretary.
[FR Doc. E5-7115 Filed 12-8-05; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 207 (Monday, October 27, 2014)]
[Notices]
[Pages 63992-63994]
[FR Doc No: 2014-25430]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73394; File No. SR-ISE-2014-50]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend the Schedule of Fees

October 21, 2014.
    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 October 10, 2014, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange 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.
---------------------------------------------------------------------------

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

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

    The ISE is proposing to amend its Schedule of Fees to increase the
route-out fee applicable to Professional Customer orders in Non-Select
Symbols, and adopt a route-out fee for Non-Customer orders routed to
away markets. The text of the proposed rule change is available on the
Exchange's Web site (http://www.ise.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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.

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

1. Purpose
    The purpose of the proposed rule change is to amend the Schedule of
Fees to increase the route-out fee applicable to Professional Customer
orders in Non-Select Symbols,\3\ and adopt a route-out fee for Non-
Customer orders \4\ routed to away markets. The Exchange's Schedule of
Fees has separate fees applicable to Standard Options and Mini Options.
The Exchange notes that while the discussion below relates to fees for
Standard Options, the fees for Mini Options, which are not discussed
below, are and shall continue to be 1/10th of the fees for Standard
Options.
---------------------------------------------------------------------------

    \3\ ``Non-Select Symbols'' are options overlying all symbols
excluding Select Symbols.
    \4\ A Non-Customer Order is an order for the account of a person
or entity that is a broker or dealer in securities. See ISE Rules
100(a)(27)-(28).
---------------------------------------------------------------------------

    The Exchange presently charges a route-out fee applicable to
Priority Customer \5\ and Professional Customer \6\ orders routed to
away markets pursuant to the Options Order Protection and Locked/
Crossed Market Plan (the ``Plan''). Specifically, the Exchange charges
a route-out fee of $0.45 per contract for Priority Customer orders and
$0.55 per contract for Professional Customer orders in all symbols. The
Exchange now proposes to increase the route-out fee for Professional
Customer orders in Non-Select Symbols to $0.95 per contract to reduce
the negative economics associated with executing these orders on other
options exchanges. Professional Customer orders in Select Symbols and
Priority Customer orders will continue to pay route-out fees at their
respective rates described above.
---------------------------------------------------------------------------

    \5\ A Priority Customer is defined in ISE Rule 100(a)(37A) as a
person or entity that is not a broker/dealer in securities, and does
not place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s).
    \6\ A Professional Customer is a person who is not a broker/
dealer and is not a Priority Customer.
---------------------------------------------------------------------------

    On July 31, 2014 the Exchange filed a proposed rule change that
introduced linkage routing for Non-Customer orders, which became
effective on September 1, 2014.\7\ In connection with this new
functionality, the Exchange now proposes to adopt a route-out fee for
Non-Customer orders routed to other options exchanges. The proposed
route-out fee will be $0.55 per contract in Select Symbols,\8\ and
$0.95 per contract in Non-Select Symbols, in line with the rates
described above for Professional Customer orders, and will be
applicable to all Market Maker,\9\ Non-ISE Market Maker,\10\ and Firm
Proprietary \11\/Broker-Dealer \12\ orders routed to away markets
pursuant to the Plan.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 72816 (August 12,
2014), 79 FR 48811 (August 18, 2014) (SR-ISE-2014-37).
    \8\ ``Select Symbols'' are options overlying all symbols listed
on the ISE that are in the Penny Pilot Program.
    \9\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See ISE Rule
100(a)(25).
    \10\ A Non-ISE Market Maker, or Far Away Market Maker
(``FARMM''), is a market maker as defined in Section 3(a)(38) of the
Securities Exchange Act of 1934 registered in the same options class
on another options exchange.
    \11\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account.
    \12\ A Broker-Dealer order is an order submitted by a Member for
a non-Member broker-dealer account.
---------------------------------------------------------------------------

    In connection with the proposed fee changes described above, the
Exchange also proposes to reformat its route-out fee table to include
separate columns for Select Symbols and Non-Select Symbols, as well as
for Standard Options and Mini Options, and to reduce the number of
duplicative footnotes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\13\ in general, and
Section 6(b)(4) of the Act,\14\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed route-out fees
are reasonable and equitable as they offset costs incurred by the
Exchange in connection with using unaffiliated broker-dealers to access
other exchanges for linkage executions. Other options exchanges, such
as the NASDAQ Options Market (``NOM'') and NYSE Arca Options
(``Arca''), have fees for taking liquidity that are as high as $0.89
per contract for Professional Customer orders in Non-Select
Symbols.\15\ It has thus become necessary for the Exchange to raise the
route-out fees applicable to these orders to recoup the higher costs
associated with executing orders on these markets. Furthermore, as the
Exchange recently expanded its linkage routing capabilities to include
Non-Customer orders, the Exchange believes

that it is appropriate to adopt corresponding fees at this time. The
route-out fees proposed herein for Non-Customer orders are lower than
those charged by some of the Exchange's competitors, including, for
example, NASDAQ OMX PHLX (``PHLX''), which charges a fee of $0.97 per
contract for routing Non-Customer orders to away markets.\16\
---------------------------------------------------------------------------

    \15\ See NOM Chapter XV Options Pricing, Sec. 2 NASDAQ Options
Market--Fees and Rebates; Arca Options Fees and Charges, Trade-
Related Charges for Standard Options.
    \16\ See PHLX Fee Schedule, Section V, Routing Fees.
---------------------------------------------------------------------------

    Furthermore, the Exchange believes that the proposed fees are not
unfairly discriminatory because these fees would be uniformly applied,
as appropriate, to all Professional Customer and Non-Customer orders.
As has historically been the case, Priority Customer orders will
continue to pay lower route-out fees than orders from other market
participants, including Professional Customer and, now, Non-Customer
orders. The Exchange believes that it is equitable and not unfairly
discriminatory to charge lower fees for Priority Customer orders than
Professional Customer and Non-Customer orders as a Priority Customer is
by definition not a broker or dealer in securities, and does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). This limitation does
not apply to participants whose behavior is substantially similar to
that of market professionals, including Professional Customers and Non-
Customers, who will generally submit a higher number of orders (many of
which do not result in executions) than Priority Customers. Moreover,
the Exchange notes that Priority Customer orders are often charged
lower taker fees than Professional Customer and Non-Customer orders on
other options exchanges, meaning that the execution costs to the
Exchange for routing these orders is correspondingly lower. As such,
the Exchange believes that it is equitable and not unfairly
discriminatory to pass on this cost savings to the firms entering these
orders.
    The Exchange has determined to charge fees for regular orders in
Mini Options at a rate that is 1/10th the rate of fees the Exchange
currently provides for trading in Standard Options. The Exchange
believes it is reasonable and equitable and not unfairly discriminatory
to assess lower fees to provide market participants an incentive to
trade Mini Options on the Exchange. The Exchange believes the proposed
fees are reasonable and equitable in light of the fact that Mini
Options have a smaller exercise and assignment value, specifically 1/
10th that of a Standard Option contract, and, as such, levying fees
that are 1/10th of what market participants pay to trade Standard
Options. As a result, routing fees for Mini Options will continue to be
charged at 1/10th the rate of fees of Standard Options.

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 intermarket or intramarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act as
it simply adjusts Professional Customer route-out fees to be consistent
with the costs associated with routing orders to away markets, and
adopts fees for routing Non-Customer orders to other options exchanges,
in connection with the introduction of linkage routing for those
orders. The Exchange operates in a highly competitive market in which
market participants can readily direct their order flow to competing
venues. In such an environment, the Exchange must continually review,
and consider adjusting, its fees to remain competitive with other
exchanges. For the reasons described above, the Exchange believes that
the proposed fee change reflects this competitive environment.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \17\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\18\ because it establishes a due, fee, or other charge
imposed by ISE.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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 to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an Email to<EMAIL_ADDRESS>Please include
File No. SR-ISE-2014-50 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-ISE-2014-50. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the ISE. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2014-50 and should be
submitted by November 17, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25430 Filed 10-24-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 11 (Tuesday, January 19, 2016)]
[Notices]
[Pages 2941-2942]
[FR Doc No: 2016-00753]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. 2016-0001]

Petition for Exemption; Summary of Petition Received; Innova
Flights Training and Systems

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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

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

DATES: Comments on this petition must identify the petition docket
number and must be received on or before February 8, 2016.

ADDRESSES: Send comments identified by docket number FAA-2015-0137
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to http://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacy.

    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Michael J. Cameron,<PHONE_NUMBER>,
800 Independence Avenue SW., Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on January 12, 2016.
Lirio Liu,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2015-0137
    Petitioner: Innova Flight Training and Systems
    Section(s) of 14 CFR Affected: 21, and Sec. Sec.  61.3, 61.113(a),
91.109 (a), 91.119, 91.121, and 91.151(a).
    Description of Relief Sought: The petitioner is requesting relief
in order to instruct students on Unmanned Aircraft Systems (UAS)
operations in the National Airspace System (NAS). Petitioner's
curriculum includes non-certified and certificated aviation students
manipulating UAS controls with an aviation certificated pilot as the
pilot in command (PIC) acting as an instructor who is able to take
control of the UAS at any time.
[FR Doc. 2016-00753 Filed 1-15-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 109 (Friday, June 6, 2014)]
[Rules and Regulations]
[Pages 32642-32643]
[FR Doc No: 2014-13245]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2014-0302; Notice No. 25-551-SC]

Special Conditions: The Boeing Company, Models 737-700, -700C, -
800, -900ER, -7, -8, and -9 Series Airplanes; Isolation or Airplane
Electronic System Security Protection From Unauthorized Internal Access

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final Special Conditions; Request for Comments.

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

SUMMARY: These special conditions are issued for Boeing Models 737-700,
-700C, -800, -900ER, -7, -8, and -9 series airplanes. These airplanes
will have a novel or unusual design feature associated with
connectivity of the passenger service computer systems to the airplane
critical systems and data networks. The applicable airworthiness
regulations do not contain adequate or appropriate safety standards for
this design feature. These special conditions contain the additional
safety standards that the Administrator considers necessary to
establish a level of safety equivalent to that established by the
existing airworthiness standards.

DATES: The effective date of these special conditions is June 6, 2014.
We must receive your comments by July 21, 2014.

ADDRESSES: Send comments identified by docket number FAA-2014-0302
using any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov/ gov/.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except federal holidays.

FOR FURTHER INFORMATION CONTACT: Varun Khanna, FAA, Airplane and Flight
Crew Interface, ANM-111, Transport Airplane Directorate, Aircraft
Certification Service, 1601 Lind Avenue SW., Renton, Washington 98057-
3356; telephone<PHONE_NUMBER>; facsimile<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA has determined that notice of, and
opportunity for prior public comment on, these special conditions is
impracticable because these procedures would significantly delay
issuance of the design approval and thus delivery of the affected
aircraft. In addition, the substance of these special conditions has
been subject to the public comment process in several prior instances
with no substantive comments received. The FAA therefore finds that
good cause exists for making these special conditions effective upon
publication in the Federal Register.

Comments Invited

    We invite interested people to take part in this rulemaking by
sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.
    We will consider all comments we receive by the closing date for
comments. We may change these special conditions based on the comments
we receive.

Background

    On January 27, 2012, The Boeing Company applied for an amendment to
Type Certificate No. A16WE to include new minor models, 737-7, -8, and
-9. The Models 737-7, -8, and -9, which are derivatives of the 737-700,
-800, -900ER currently approved under Type Certificate No. A16WE, are
passenger series airplanes designed to substantially reduce fuel burn
and community noise. In addition, the design will include a new CFM
LEAP-1B engine with a 68.4-inch diameter fan, 8-inch longer nose gear
to accommodate the larger engine, a relofted tailcone (which requires
the elevator to be trimmed and the elevator tab to be relocated
outboard to accommodate the new contours), new horizontal stabilizer
strakelets, a retractable auxiliary power unit (APU) inlet door, fly-
by-wire spoilers, strengthened flight deck bulkhead, and a new winglet
design.

Type Certification Basis

    Under the provisions of Title 14, Code of Federal Regulations (14
CFR) 21.101, The Boeing Company must show that the Models 737-700, -
700C, -800, -900ER, -7, -8, and -9 series airplanes meet the applicable
provisions of the regulations incorporated by reference in Type
Certificate No. A16WE or the applicable regulations in effect on the
date of application for the change to the type certificate. The
regulations incorporated by reference in the type certificate are
commonly referred to as the ``original type certification basis.'' In
addition the certification basis includes certain special conditions,
exemptions, or later amended sections of the applicable part that are
not relevant to these special conditions.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the 737-700, -700C, -800, -900ER, -7,
-8, and -9 because of a novel or unusual design feature, special
conditions are prescribed under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same or similar
novel or unusual design feature, or should any other model already
included on the same type certificate be modified to incorporate the
same novel or unusual design feature, the special conditions would also
apply to the other model.
    In addition to the applicable airworthiness regulations and special
conditions, the 737-700, -700C, -800, -900ER, -7, -8, and -9 must
comply with the fuel vent and exhaust emission requirements of 14 CFR
part 34 and the noise certification requirements of 14 CFR part 36.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance

with Sec.  11.38, and they become part of the type-certification basis
under Sec.  21.101.

Novel or Unusual Design Features

    The Boeing Models 737-700, -700C, -800, -900ER, -7, -8, and -9
series airplanes will incorporate the following novel or unusual design
features: Digital systems architecture composed of several connected
networks. This network architecture and network configuration may be
used for or interfaced with a diverse set of functions, including:
     Flight safety related control, communication, and
navigation systems (aircraft control domain);
     Operation and administrative support (operator information
services domain); and
     Passenger information and entertainment systems (passenger
entertainment domain), and the capability to allow access to or by
external network sources.

Discussion

    The proposed integrated network configuration on the Models 737-
700, -700C, -800, -900ER, -7, -8, and -9 may allow increased
connectivity with external network sources and will have more
interconnected networks and systems, such as passenger entertainment
and information services, than previous 737 airplane models. This may
allow the exploitation of network security vulnerabilities resulting in
intentional or unintentional destruction, disruption, degradation, or
exploitation of data and systems critical to the safety and maintenance
of the airplane, which could result in unsafe conditions for the
airplane and its occupants.
    The existing regulations and guidance material did not anticipate
these types of system architectures or access to airplane systems.
Furthermore, 14 CFR regulations and current system safety assessment
policy and techniques do not address potential security vulnerabilities
that could be caused by unauthorized access to airplane data busses and
servers. Therefore, these special conditions are issued to ensure that
the security (i.e., confidentiality, integrity, and availability) of
airplane systems are not compromised by unauthorized wired or wireless
electronic connections between airplane operation systems and networks
and the passenger domain.

Applicability

    As discussed above, these special conditions are applicable to the
Models 737-700, -700C, -800, -900ER, -7, -8, and -9 series airplanes.
Should The Boeing Company apply at a later date for a change to the
type certificate to include another model incorporating the same novel
or unusual design feature, the special conditions would apply to that
model as well.

Conclusion

    This action affects only certain novel or unusual design features
on certain model series of airplanes. It is not a rule of general
applicability.
    The substance of these special conditions has been subjected to the
notice and comment period in several prior instances and has been
derived without substantive change from those previously issued. It is
unlikely that prior public comment would result in a significant change
from the substance contained herein. Therefore, because a delay would
significantly affect the certification of the airplane, the FAA has
determined that prior public notice and comment are unnecessary and
impracticable, and good cause exists for adopting these special
conditions upon issuance. The FAA is requesting comments to allow
interested persons to submit views that may not have been submitted in
response to the prior opportunities for comment described above.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701, 44702, 44704.

The Special Conditions

0
Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for The Boeing Company Models 737-700, -
700C, -800, -900ER, -7, -8, and -9 series airplanes.

Isolation or Airplane Electronic System Security Protection From
Unauthorized Internal Access

    1. The applicant must ensure that the design provides isolation
from, or airplane electronic system security protection against, access
by unauthorized sources internal to the airplane. The design must
prevent inadvertent and malicious changes to, and all adverse impacts
upon, airplane equipment, systems, networks, or other assets required
for safe flight and operations.
    2. The applicant must establish appropriate procedures to allow the
operator to ensure that continued airworthiness of the airplane is
maintained, including all post type certification modifications that
may have an impact on the approved electronic system security
safeguards.

    Issued in Renton, Washington, on May 5, 2014.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2014-13245 Filed 6-5-14; 8:45 am]
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[Federal Register Volume 85, Number 87 (Tuesday, May 5, 2020)]
[Notices]
[Page 26708]
[FR Doc No: 2020-09497]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4512-DR; Docket ID FEMA-2020-0001]

Virginia; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the Commonwealth of Virginia (FEMA-4512-DR), dated April
2, 2020, and related determinations.

DATES:  The declaration was issued April 2, 2020.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated April 2, 2020, the President issued a major disaster declaration
under the authority of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ``Stafford
Act''), as follows:

    I have determined that the emergency conditions in the
Commonwealth of Virginia resulting from the Coronavirus Disease 2019
(COVID-19) pandemic beginning on January 20, 2020, and continuing,
are of sufficient severity and magnitude to warrant a major disaster
declaration under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ``Stafford
Act''). Therefore, I declare that such a major disaster exists in
the Commonwealth of Virginia.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide assistance for emergency
protective measures (Category B), including direct Federal
assistance, under the Public Assistance program throughout the
Commonwealth. Consistent with the requirement that Federal
assistance be supplemental, any Federal funds provided under the
Stafford Act for Public Assistance will be limited to 75 percent of
the total eligible costs.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, MaryAnn Tierney, of FEMA is
appointed to act as the Federal Coordinating Officer for this major
disaster.
    The following areas of the Commonwealth of Virginia have been
designated as adversely affected by this major disaster:

    Emergency protective measures (Category B) not authorized under
other Federal statutes, including direct Federal assistance, under
the Public Assistance program at 75 percent federal funding for all
areas in the Commonwealth of Virignia.

The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households In
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.

Pete Gaynor,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2020-09497 Filed 5-4-20; 8:45 am]
 BILLING CODE 9111-23-P