[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Notices]
[Pages 8592-8594]
[FR Doc No: 2016-03443]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

Petition for Exemption From the Federal Motor Vehicle Theft
Prevention Standard; Toyota

AGENCY: National Highway Traffic Safety Administration, Department of
Transportation (DOT).

ACTION: Grant of petition for exemption.

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SUMMARY: This document grants in full the Toyota Motor North America,
Inc.'s, (Toyota) petition for an exemption of the Lexus RX vehicle line
in accordance with 49 CFR part 543, Exemption from Vehicle Theft
Prevention Standard. This petition is granted because the agency has
determined that the antitheft device to be placed on the line as
standard equipment is likely to be as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
requirements of the 49 CFR part 541, Federal Motor Vehicle Theft
Prevention Standard (Theft Prevention Standard).

DATES: The exemption granted by this notice is effective beginning with
the 2017 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, International
Policy, Fuel Economy and Consumer Programs, NHTSA, W43-439, 1200 New
Jersey Avenue SE., Washington, DC 20590. Ms. Ballard's phone number is
(202) 366-5222. Her fax number is<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In a petition dated December 1, 2015, Toyota
requested an exemption from the parts-marking requirements of the Theft
Prevention Standard for the Lexus RX vehicle line beginning with MY
2017. The petition requested an exemption from parts-marking pursuant
to 49 CFR part 543, Exemption from Vehicle Theft Prevention Standard,
based on the installation of an antitheft device as standard equipment
for the entire vehicle line.
    Under 49 CFR part 543.5(a), a manufacturer may petition NHTSA to
grant an exemption for one vehicle line per model year. In its
petition, Toyota provided a detailed description and diagram of the
identity, design, and location of the components of the antitheft
device for the Lexus RX vehicle line. Toyota stated that its MY 2017
Lexus RX vehicle line and RX hybrid vehicle model (HV) will be
installed with a ``smart entry and start'' system and an engine
immobilizer device as standard equipment. Toyota further explained that
the ``smart entry and start'' system on its Lexus RX vehicle line will
have slightly different components than those on its RX HV model. Key
components of the ``smart entry and start'' system on the Lexus RX
vehicle line will include an engine immobilizer, a certification
electronic control unit (ECU), engine switch, steering lock ECU,
security indicator, door control receiver, electrical key, an
electronic control module (ECM) and an ID code box. The key components
installed on its RX HV model will also include a power switch and a
power source HV-ECU. Toyota stated that it will also install an audible
and visual alarm system on its Lexus RX vehicle line as standard
equipment and that there will be position switches installed on the
vehicle to protect the hood and doors from unauthorized tampering/
opening. Toyota further explained locking of the doors can be
accomplished through use of a conventional key, wireless switch
incorporated within the keyfob or its

smart entry system, and that unauthorized tampering with the hood or
door without using one of these methods will cause the position
switches to trigger the alarm system.
    Toyota's submission is considered a complete petition as required
by 49 CFR 543.7 in that it meets the general requirements contained in
Sec.  543.5 and the specific content requirements of Sec.  543.6.
    In addressing the specific content requirements of Sec.  543.6,
Toyota provided information on the reliability and durability of its
proposed device. To ensure reliability and durability of the device,
Toyota conducted tests based on its own specified standards. Toyota
provided a detailed list of the tests conducted (i.e., high and low
temperature, strength, impact, vibration, electro-magnetic
interference, etc.). Toyota stated that it believes that its device is
reliable and durable because it complied with its own specific design
standards and the antitheft device is installed on other vehicle lines
for which the agency has granted a parts-marking exemption. Toyota
stated that the antitheft device is already installed as standard
equipment on its MY 2003 Lexus RX vehicle line and the MY 2006 RX HV
model. The theft rate for the Toyota Lexus RX vehicle line using an
average of three model years' data (MYs 2011-2013) is 0.3679, which is
well below the 3.5826 median theft rate. As an additional measure of
reliability and durability, Toyota stated that its vehicle key
cylinders are covered with casting cases to prevent the key cylinder
from easily being broken. Toyota further explained that the numerous
key cylinder combinations and key plates it uses for its gutter keys
would make it very difficult to unlock the doors without using a valid
key. If a valid key is used, the key cylinders spin out and its locks
will not work.
    Toyota stated that its Lexus RX vehicles' ``smart entry and start''
system allows the driver to press the engine switch button located on
the instrument panel to start the vehicle. Once the driver pushes the
engine switch button, the certification ECU verifies the electrical
key. When the key is verified, the certification ECU, ID code box and
steering lock ECU receive confirmation of the valid key, and the
certification ECU allows the ECM to start the engine. With the RX HV
model ``smart entry and start'' system, once the driver pushes the
power switch button, the certification ECU verifies the key, the
certification ECU, ID code box and steering lock ECU receive
confirmation of a valid key, and then the certification ECU will allow
the ECM to start the vehicle.
    Toyota stated that with its ``smart entry and start'' system, the
immobilizer device is activated when the engine switch is pushed from
the ``ON'' ignition status to any other ignition status, the
certification ECU performs the calculation of the immobilizer and the
immobilizer signals the ECM to activate the device. On the RX HV model,
the ``smart entry and start'' system's immobilizer device is activated
when the power switch is pushed from the ``ON'' ignition status to any
other ignition status, the certification ECU performs the calculation
of the immobilizer and the immobilizer signals the HV-ECU to activate
the device. Deactivation of its smart key-installed systems occurs when
the doors are unlocked and the device recognizes the key code.
Deactivation of the conventional key system occurs when the door is
unlocked and the key is turned to the ``ON'' position.
    Toyota also compared its proposed device to other devices NHTSA has
determined to be as effective in reducing and deterring motor vehicle
theft as would compliance with the parts-marking requirements (i.e.,
Toyota Camry, Corolla, Prius, RAV4, Highlander, Sienna, Lexus LS, and
Lexus GS vehicle lines) which have all been granted parts-marking
exemptions by the agency. The theft rates for the Toyota Camry,
Corolla, Prius, RAV4, Highlander, Sienna, Lexus LS, and Lexus GS
vehicle lines using an average of three model years' data (2011-2013)
are 1.3030, 1.3988, 0.2464, 0.4100, 0.4603, 0.5124, 0.4879 and 0.9116
respectively. Therefore, Toyota has concluded that the antitheft device
proposed for its Lexus RX vehicle line is no less effective than those
devices on the lines for which NHTSA has already granted full exemption
from the parts-marking requirements. Toyota stated that it believes
that installing the immobilizer as standard equipment reduces the theft
rate and expects the Lexus RX vehicle line to experience comparable
effectiveness, and ultimately be more effective than parts-marking
labels.
    Based on the supporting evidence submitted by Toyota on its device,
the agency believes that the antitheft device for the Lexus RX vehicle
line is likely to be as effective in reducing and deterring motor
vehicle theft as compliance with the parts-marking requirements of the
Theft Prevention Standard (49 CFR 541). The agency concludes that the
device will provide the five types of performance listed in Sec.
543.6(a)(3): Promoting activation; attracting attention to the efforts
of unauthorized persons to enter or operate a vehicle by means other
than a key; preventing defeat or circumvention of the device by
unauthorized persons; preventing operation of the vehicle by
unauthorized entrants; and ensuring the reliability and durability of
the device.
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.7 (b), the agency grants
a petition for exemption from the parts-marking requirements of Part
541, either in whole or in part, if it determines that, based upon
substantial evidence, the standard equipment antitheft device is likely
to be as effective in reducing and deterring motor vehicle theft as
compliance with the parts-marking requirements of Part 541. The agency
finds that Toyota has provided adequate reasons for its belief that the
antitheft device for the Toyota Lexus RX vehicle line is likely to be
as effective in reducing and deterring motor vehicle theft as
compliance with the parts-marking requirements of the Theft Prevention
Standard (49 CFR part 541). This conclusion is based on the information
Toyota provided about its device.
    For the foregoing reasons, the agency hereby grants in full
Toyota's petition for exemption for the Toyota Lexus RX vehicle line
from the parts-marking requirements of 49 CFR part 541. The agency
notes that 49 CFR part 541, Appendix A-1, identifies those lines that
are exempted from the Theft Prevention Standard for a given model year.
49 CFR part 543.7(f) contains publication requirements incident to the
disposition of all Part 543 petitions. Advanced listing, including the
release of future product nameplates, the beginning model year for
which the petition is granted and a general description of the
antitheft device is necessary in order to notify law enforcement
agencies of new vehicle lines exempted from the parts marking
requirements of the Theft Prevention Standard.
    If Toyota decides not to use the exemption for this line, it should
formally notify the agency. If such a decision is made, the line must
be fully marked according to the requirements under 49 CFR parts 541.5
and 541.6 (marking of major component parts and replacement parts).
    NHTSA notes that if Toyota wishes in the future to modify the
device on which this exemption is based, the company may have to submit
a petition to modify the exemption. Part 543.7(d) states that a Part
543 exemption applies only to vehicles that belong to a line exempted
under this part and equipped with the antitheft device on which the

line's exemption is based. Further, Part 543.9(c)(2) provides for the
submission of petitions ``to modify an exemption to permit the use of
an antitheft device similar to but differing from the one specified in
that exemption.''
    The agency wishes to minimize the administrative burden that Part
543.9(c)(2) could place on exempted vehicle manufacturers and itself.
The agency did not intend in drafting Part 543 to require the
submission of a modification petition for every change to the
components or design of an antitheft device. The significance of many
such changes could be de minimis. Therefore, NHTSA suggests that if the
manufacturer contemplates making any changes, the effects of which
might be characterized as de minimis, it should consult the agency
before preparing and submitting a petition to modify.

    Issued in Washington, DC, under authority delegated in 49 CFR
1.95.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2016-03443 Filed 2-18-16; 8:45 am]
 BILLING CODE 4910-59-P


[Federal Register Volume 80, Number 150 (Wednesday, August 5, 2015)]
[Notices]
[Pages 46617-46619]
[FR Doc No: 2015-19134]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75568; File No. SR-BX-2015-043]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Amend
Rule 4703(a)

July 30, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 20, 2015, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \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 amend Rule 4703(a) to remove the Market
Hours Immediate or Cancel Time in Force and to delay implementation of
changes to the Good-til-market close Time in Force, which were recently
adopted by BX but are not yet implemented.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxbx.cchwallstreet.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange is proposing to amend Rule 4703(a) to remove the
Market Hours Immediate or Cancel (``Market Hours IOC'' or ``MIOC'')
Time-in-Force and to delay implementation of changes to the Good-til-
market close (``GTMC'') Time-in-Force, which were recently adopted by
BX but are not yet implemented.\3\ Time-in-Force (``TIF'') is

a characteristic of an order that limits the period of time that the
System will hold an order for potential execution. An Order that is
designated to deactivate immediately after determining whether the
Order is marketable may be referred to as having a TIF of ``Immediate
or Cancel'' or ``IOC''.\4\ Any Order with a TIF of IOC entered between
9:30 a.m. ET and 4:00 p.m. ET is considered as having a TIF of MIOC.\5\
The MIOC TIF is very similar to the SIOC \6\ TIF, but MIOC designated
orders are limited to entry and potential execution only during Regular
Market Hours. An order designated with a TIF of MIOC that is entered
outside of Regular Market Hours would be returned to the entering
member firm without attempting to execute. The Exchange has determined
that, based on a lack of market participant desire for a MIOC TIF and
the cost that would be incurred in developing and implementing it on
the Exchange, it will not implement the MIOC TIF at this juncture.
Accordingly, the Exchange is proposing to delete text concerning the
MIOC TIF, which is effective but not yet operative.
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    \3\ The Exchange notes that the text at issue in this filing
concerning the MIOC TIF under Rule 4703(a)(1) is not yet
implemented, but was recently inadvertently incorporated into the BX
rulebook when the Commission approved certain rules governing the BX
equities market in order to provide additional detail and clarity
regarding its order type functionality. See Securities Exchange Act
Release No. 75291 (June 24, 2015), 80 FR 37698 (July 1, 2015) (SR-
BX-2015-015). Notwithstanding its inadvertent inclusion in the
rulebook, the rule text concerning the MIOC TIF is not yet
effective. The Exchange had anticipated implementing the MIOC and
GTMC changes in the second quarter of 2015. See Securities Exchange
Act Release No. 74638 (April 2, 2015), 80 FR 18890 (April 8, 2015)
(SR-BX-2015-016).
    \4\ See Rule 4703(a)(1).
    \5\ Id.
    \6\ An Order with a TIF of IOC that is entered at any time
between 7:00 a.m. ET and 7:00 p.m. ET may be referred to as having a
TIF of ``System Hours Immediate or Cancel'' or ``SIOC''. Id.
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    The Exchange is also proposing to amend Rule 4703(a)(6) to make it
clear that the Exchange will no longer accept GTMC orders for execution
after 4:00 p.m. Eastern Time, which are currently accepted and
converted to SIOC orders if received after 4:00 p.m. Eastern Time. In
April 2015, the Exchange proposed this change to the predecessor rule
concerning GTMC orders in a prior filing with the Commission,\7\ and
had anticipated implementing the change at some point in the second
quarter of 2015. During that time, the Commission approved a rule
change that renumbered and clarified the rule.\8\ Accordingly, the
Exchange is now amending the renumbered rule to reflect the changes
made in the prior filing. The Exchange is also proposing to delay the
change to the operation of GTMC orders after 4:00 p.m. Eastern Time, so
that this change will now be implemented the week of August 17, 2015
and will complete the implementation the week of August 31, 2015.
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    \7\ See Securities Exchange Act Release No. 74638 (April 2,
2015), 80 FR 18890 (April 8, 2015) (SR-BX-2015-016).
    \8\ The Exchange also made a clarifying change to the rule,
which was incorporated into the renumbered rule. Supra note 3.
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    The Exchange is also making a minor technical correction to Rule
4703(a)(6) by inserting hyphenation in the term ``Time-in-Force,''
which will make it consistent with its use in other paragraphs of the
rule.
2. Statutory Basis
    BX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\9\ in general, and with Section
6(b)(5) of the Act,\10\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest; and also in that it is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange believes that, in light of a lack of
market participant interest and the costs the Exchange would incur in
developing and implementing a MIOC TIF, it would be in the best
interest of the market and market participants not to implement the
change at this juncture. Implementing a change, which will not be used
significantly yet will represent a cost to the Exchange to implement,
could ultimately result in increased costs to market participants in
the form of increased fees. Accordingly, the Exchange is eliminating
the MIOC TIF until such time that the demand for it justifies the
expenditure.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
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    The proposed change to Rule 4703(a)(6) is designed to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest because it modifies the rule to reflect a change made
to the predecessor rule, which was filed with the Commission as an
immediately effective filing to be implemented sometime in the second
quarter of 2015. The change, which was subject to the notice and
comment process, had not been implemented prior to the rule's
renumbering. Accordingly, the proposed change to amend Rule 4703(a)(6)
merely modifies the rule text so that it is consistent with the changes
made to the predecessor rule.
    The proposed delay in implementing the changes to the Good-til-
market close TIF is designed to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest because it
will provide the Exchange with a brief extension to adequately program
and test the proposed changes to the TIF. Moreover, the Exchange is
delaying implementation of the changes until after the reconstitution
of the Russell indexes, which is a day of significant volume in the
market and immediately prior to which the Exchange reduces the number
of changes made to the System. Accordingly, the proposed delay will
serve to reduce risk in the market during a time of significant volume
and provide the Exchange adequate time to program and test the proposed
changes, thereby protecting investors and the public interest.

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

    The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Specifically,
the Exchange notes that there is little interest in MIOC among market
participants on BX, and accordingly removing MIOC before it is
implemented will not impact the Exchange's competitiveness among
exchanges or other execution venues. In addition, the Exchange does not
believe that briefly delaying the changes to the Good-til-market close
TIF will place any burden on competition whatsoever because the TIF
will continue to be available unchanged until the Exchange has
adequately programmed and tested the proposed changes.

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

    No written comments were either solicited or received.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it

was filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. The Exchange represents
that market participants have not expressed interest in the MIOC TIF.
The Exchange therefore argues that waiver of the operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to remove the MIOC TIF prior its
implementation, thereby serving to avoid investor confusion. The
Exchange also reasons that waiving the operative delay would allow the
Exchange to make the required technical and operational changes to the
GTMC TIF after the reconstitution of the Russell Indexes. Based on the
foregoing, the Commission finds that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest
and hereby designates the proposal operative upon filing.\17\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-BX-2015-043 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-BX-2015-043. 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 offices 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-BX-2015-043,
and should be submitted on or before August 26, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12), (59).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19134 Filed 8-4-15; 8:45 am]
BILLING CODE 8011-01-P