[Federal Register Volume 79, Number 162 (Thursday, August 21, 2014)]
[Notices]
[Pages 49544-49549]
[FR Doc No: 2014-19806]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72853; File No. SR-NYSEArca-2014-57]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 2 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendments No. 1 and No. 2 To List
and Trade Shares of the PIMCO Foreign Bond Exchange-Traded Fund (U.S.
Dollar-Hedged), PIMCO Foreign Bond Exchange-Traded Fund (Unhedged),
PIMCO Global Advantage Bond Exchange-Traded Fund, and PIMCO
International Advantage Bond Exchange-Traded Fund

August 15, 2014.

I. Introduction

    On May 1, 2014, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934
(``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule
change to list and trade shares (``Shares'') of the PIMCO Foreign Bond
Exchange-Traded Fund (U.S. Dollar-Hedged) (``Hedged Foreign Bond
Fund''), PIMCO Foreign Bond Exchange-Traded Fund (Unhedged) (``Unhedged
Foreign Bond Fund''), PIMCO Global Advantage Bond Exchange-Traded Fund
(``Global Advantage Bond Fund''), and PIMCO International Advantage
Bond Exchange-Traded Fund (``International Advantage Bond Fund'') (each
a ``Fund,'' and collectively ``Funds''). The proposed rule change was
published for comment in the Federal Register on May 22, 2014.\4\ On
June 12, 2014, the Exchange filed Amendment No. 1 to the proposed rule
change, which amended and replaced the proposed rule change in its
entirety. On July 9, 2014, the Commission published notice to solicit
comments from interested persons on the proposed rule change, as
modified by Amendment No. 1, and to designate a longer period for
Commission action on the proposed rule change, as modified by Amendment
No. 1.\5\ On July 31, 2014, the Exchange filed Amendment No. 2 to the
proposed rule change, which amended and replaced the proposed rule
change in its entirety.\6\ The Commission received no comments on the
proposal. The Commission is publishing this notice to solicit comments
on Amendment No. 2 from interested persons and is approving the
proposed rule change, as modified by Amendments No. 1 and No. 2, on an
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 72180 (May 16,
2014), 79 FR 29461.
    \5\ See Securities Exchange Act Release No. 72531 (July 3,
2014), 79 FR 39048. Pursuant to Section 19(b)(2) of the Act, the
Commission determined that it was appropriate to designate a longer
period within which to take action on the proposed rule change.
Accordingly, the Commission designated August 21, 2014, as the date
by which the Commission should either approve or disapprove or
institute proceedings to determine whether to disapprove the
proposed rule change.
    \6\ In Amendment No. 2, the Exchange: (1) Designated structured
notes, including hybrid or indexed securities and event linked
bonds, as non-principal (rather than principal) potential
investments of the Funds; (2) provided more information about
delayed funding loans, stating that they: (a) Are borrowing
arrangements in which the lender agrees to make loans up to a
maximum amount upon demand by the borrower during a specified term,
and (b) normally provide for floating or variable rates of interest;
(3) deleted an inaccurate reference to equity securities as a
principal investment of the Unhedged Foreign Bond Fund; (4)
supplemented its disclosures regarding the pricing of the Funds'
underlying investments for net asset value (``NAV'') purposes to
state that equity securities traded over-the-counter (``OTC'') will
be valued based on price quotations obtained from a broker-dealer
who makes markets in such securities or other equivalent indications
of value provided by a third-party pricing service; (5) supplemented
its disclosures regarding the availability of price information for
the Funds' underlying holdings to add that equity securities traded
OTC will be available from major market data vendors; and (6)
clarified that the Hedged Foreign Bond Fund and Unhedged Foreign
Bond Fund may invest in mortgage-backed securities rated below B
subject to the limitation of the Funds to invest up to 10% of its
total assets in high-yield securities (junk bonds) rated B or higher
by Moody's, or equivalently rated by S&P or Fitch, or, if unrated,
determined by PIMCO to be of comparable quality. The text of
Amendment No. 2 is available at: http://www.sec.gov/comments/sr-nysearca-2014-57/nysearca201457.shtml.
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II. Description of the Proposed Rule Change

    The Exchange has proposed to list and trade the Shares under NYSE
Arca Equities Rule 8.600, which governs the listing and trading of
Managed Fund Shares on the Exchange. The Shares will be offered by
PIMCO ETF Trust (``Trust''), a statutory trust organized under the laws
of the State of Delaware and registered with the Commission as an open-
end management investment company.\7\ The investment manager to

the Funds will be Pacific Investment Management Company LLC (``PIMCO''
or the ``Adviser''). PIMCO Investments LLC will serve as the
distributor for the Funds. State Street Bank & Trust Co. will serve as
the custodian and transfer agent for the Funds. The Exchange represents
that the Adviser is not registered as a broker-dealer, but is
affiliated with a broker-dealer, and will implement a ``firewall'' with
respect to such broker-dealer regarding access to information
concerning the composition of or changes to a Fund's portfolio.\8\
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    \7\ The Trust is registered under the Investment Company Act of
1940 (15 U.S.C. 80a-1) (``1940 Act''). On January 27, 2014, the
Trust filed an amendment to its registration statement on Form N-1A
under the Securities Act of 1933 (15 U.S.C. 77a) and the 1940 Act
relating to the Funds (File Nos. 333-155395 and 811-22250) (the
``Registration Statement''). In addition, the Commission has issued
an order granting certain exemptive relief to the Trust under the
1940 Act. See Investment Company Act Release No. 28993 (November 10,
2009) (File No. 812-13571).
    \8\ See Commentary .06 to NYSE Arca Equities Rule 8.600. The
Exchange represents that, in the event (a) the Adviser becomes
registered as a broker-dealer or newly affiliated with a broker-
dealer, or (b) any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a broker-dealer, the
adviser or sub-adviser, as appropriate, will implement a firewall
with respect to its relevant personnel or its broker-dealer
affiliate regarding access to information concerning the composition
of or changes to the applicable portfolio and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding such portfolio. See Amendment No.
2, supra note 6 at 5.
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    The Exchange has made the following representations and statements
regarding the Fund.\9\
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    \9\ Additional information regarding the Trust, the Funds, the
Shares, investment strategies, investment restrictions, risks, NAV
calculation, creation and redemption procedures, fees, portfolio
holdings, disclosure policies, distributions, and taxes, among other
information, is included in Amendment No. 2 and the Registration
Statement, as applicable. See Amendment No. 2 and Registration
Statement, supra notes 6 and 7, respectively.
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Hedged Foreign Bond Fund--Principal Investments

    The Hedged Foreign Bond Fund will seek maximum total return,
consistent with preservation of capital and prudent investment
management. The Fund will seek to achieve its investment objective by
investing, under normal circumstances,\10\ at least 80% of its assets
in Fixed Income Instruments \11\ and derivatives \12\ based on Fixed
Income Instruments that are economically tied to foreign countries,
representing at least three foreign countries (the ``Hedged Foreign
Bond Fund 80% policy'').
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    \10\ With respect to each Fund, the term ``under normal
circumstances'' includes, but is not limited to, the absence of
extreme volatility or trading halts in the fixed income markets or
the financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as a systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption, or any similar intervening circumstance.
    \11\ Each Fund may invest in Fixed Income Instruments, which
include: Securities issued or guaranteed by the U.S. Government, its
agencies or government-sponsored enterprises (``U.S. Government
Securities''); corporate debt securities of U.S. and non-U.S.
issuers, including convertible securities and corporate commercial
paper; mortgage-backed and other asset-backed securities; inflation-
indexed bonds issued both by governments and corporations; loan
participations and assignments; delayed funding loans and revolving
credit facilities; bank certificates of deposit, fixed time
deposits, and bankers' acceptances; repurchase agreements on Fixed
Income Instruments and reverse repurchase agreements on Fixed Income
Instruments; debt securities issued by state or local governments
and their agencies, authorities, and other government-sponsored
enterprises; obligations of non-U.S. governments or their
subdivisions, agencies, and government-sponsored enterprises; and
obligations of international agencies or supranational entities.
Each of the Funds may invest up to 20% of its assets in mortgage-
related and other asset-backed securities, although this 20%
limitation does not apply to securities issued or guaranteed by
Federal agencies or U.S. government sponsored instrumentalities.
    \12\ With respect to each Fund, derivative instruments will
include forwards; exchange-listed and OTC options contracts;
exchange-traded futures contracts; exchange-traded and OTC swap
agreements; exchange-traded and OTC options on futures contracts;
and exchange-traded and OTC options on swap agreements.
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    The Hedged Foreign Bond Fund will invest primarily in investment-
grade debt securities, but may invest up to 10% of its total assets in
high-yield securities (``junk bonds'') rated B or higher by Moody's
Investors Service, Inc. (``Moody's''), equivalently rated by Standard &
Poor's Ratings Services (``S&P'') or Fitch, Inc. (``Fitch''), or, if
unrated, determined by PIMCO to be of comparable quality, except that,
within such limitation, the Fund may invest in mortgage-backed
securities rated below B.
    In furtherance of the Hedged Foreign Bond Fund 80% policy, or with
respect to the Fund's other investments, the Hedged Foreign Bond Fund
may invest in derivative instruments.\13\
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    \13\ With respect to each Fund, derivative instruments will
include: Forwards; exchange-traded and OTC options contracts;
futures contracts; exchange-traded and OTC swap agreements;
exchange-traded and OTC options on futures contracts; and exchange-
traded and OTC options on swap agreements. See Amendment No. 2,
supra note 6 at 8.
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    Normally, the Hedged Foreign Bond Fund will limit its foreign
currency exposure (from non-U.S. dollar-denominated securities or
currencies) to 20% of its total assets. The Fund may engage in foreign
currency transactions on a spot (cash) basis or forward basis and may
invest in foreign currency futures and exchange-traded or OTC options
contracts.\14\
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    \14\ See Amendment No. 2, supra note 6 at 13.
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    The Hedged Foreign Bond Fund may, without limitation, seek to
obtain market exposure to the securities in which it primarily invests
by entering into a series of purchase and sale contracts or by using
other investment techniques (such as buy backs or dollar rolls). The
Hedged Foreign Bond Fund may purchase or sell securities that it is
eligible to purchase or sell on a when-issued, delayed delivery or
forward commitment basis, and may engage in short sales.\15\
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    \15\ See id. at 13-14.
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Hedged Foreign Bond Fund--Other (Non-Principal) Investments

    The Hedged Foreign Bond Fund may invest up to 10% of its total
assets in preferred stock, convertible securities, and other equity-
related securities. The Fund may invest in variable and floating rate
securities that are not Fixed Income Instruments, meaning securities
that pay interest at rates that adjust whenever a specified interest
rate changes or that reset on predetermined dates (such as the last day
of a month or calendar quarter).\16\ The Fund may invest in floating
rate debt instruments (``floaters'') and inverse floating rate debt
instruments (``inverse floaters'') that are not Fixed Income
Instruments and may engage in credit spread trades.\17\
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    \16\ See id. at 14.
    \17\ See id.
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    The Hedged Foreign Bond Fund also may invest in trade claims,
privately placed and unregistered securities, and exchange-traded and
OTC-traded structured products, including credit-linked securities,
commodity-linked notes, hybrid or ``indexed'' securities, event-linked
bonds, and structured notes. The Fund may invest in Brady Bonds.
    The Hedged Foreign Bond Fund may enter into repurchase agreements
on instruments other than Fixed Income Instruments. The Fund may enter
into reverse repurchase agreements on instruments other than Fixed
Income Instruments,\18\ subject to the Fund's limitations on
borrowings.
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    \18\ See id. at 15.
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Unhedged Foreign Bond Fund--Principal Investments

    The Unhedged Foreign Bond Fund will seek maximum total return,
consistent with preservation of capital and prudent investment
management. The Fund will seek to achieve its investment objective by
investing, under normal circumstances, at least 80% of its assets in
Fixed Income Instruments and derivatives based on Fixed Income
Instruments that are economically tied to foreign countries
representing at least three foreign countries (the ``Unhedged Foreign
Bond Fund 80% policy'').
    The Unhedged Foreign Bond Fund will invest primarily in investment-
grade debt securities, but may invest up to 10% of its total assets in
high-yield

securities (junk bonds) rated B or higher by Moody's, equivalently
rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of
comparable quality, except that, within such limitation, the Fund may
invest in mortgage-backed securities rated below B.
    The Unhedged Foreign Bond Fund may invest in securities and
instruments that are economically tied to emerging market countries,
subject to applicable limitations set forth herein.
    In furtherance of the Unhedged Foreign Bond Fund 80% policy, or
with respect to the Fund's other investments, the Unhedged Foreign Bond
Fund may invest in derivative instruments.\19\
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    \19\ See supra, note 13.
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    The Unhedged Foreign Bond Fund may invest in securities denominated
in foreign currencies, engage in foreign currency transactions on a
spot (cash) basis or forward basis and may invest in foreign currency
futures and exchange-traded or OTC options contracts.\20\
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    \20\ See Amendment No. 2, supra note 6.
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    The Unhedged Foreign Bond Fund may, without limitation, seek to
obtain market exposure to the securities in which it primarily invests
by entering into a series of purchase and sale contracts or by using
other investment techniques (such as buy backs or dollar rolls). The
Fund may purchase or sell securities on a when-issued, delayed
delivery, or forward commitment basis and may engage in short
sales.\21\
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    \21\ See id. at 16-17.
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Unhedged Foreign Bond Fund--Other (Non-Principal) Investments

    The Unhedged Foreign Bond Fund may invest up to 10% of its total
assets in preferred stock, convertible securities, and other equity-
related securities. The Fund may invest in variable and floating rate
securities that are not Fixed Income Instruments.\22\ The Fund may
invest in floaters and inverse floaters that are not Fixed Income
Instruments and may engage in credit spread trades.\23\
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    \22\ See id. at 17.
    \23\ See id.
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    The Unhedged Foreign Bond Fund may invest in trade claims,
privately placed and unregistered securities, and exchange-traded and
OTC-traded structured products, including credit-linked securities,
commodity-linked notes, hybrid or ``indexed'' securities, event-linked
bonds, and structured notes. The Fund may invest in Brady Bonds.
    The Unhedged Foreign Bond Fund may enter into repurchase agreements
on instruments other than Fixed Income Instruments.\24\ The Fund may
enter into reverse repurchase agreements on instruments other than
Fixed Income Instruments subject to the Fund's limitations on
borrowings.\25\
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    \24\ See id.
    \25\ See id.
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Global Advantage Bond Fund--Principal Investments

    The Global Advantage Bond Fund will seek total return exceeding
that of its benchmarks, consistent with prudent investment management.
The Fund will seek to achieve its investment objective by investing,
under normal circumstances, at least 80% of its assets in Fixed Income
Instruments and derivatives based on Fixed Income Instruments that are
economically tied to at least three countries, which may include
foreign countries and may also include the U.S. (the ``Global Advantage
Bond Fund 80% policy'').
    The Global Advantage Bond Fund may invest in both investment-grade
debt securities and high-yield securities (junk bonds) subject to a
maximum of 15% of its total assets in securities rated below B by
Moody's, S&P, or Fitch, or, if unrated, determined by PIMCO to be of
comparable quality.
    In furtherance of the Global Advantage Bond Fund 80% policy, or
with respect to the Fund's other investments, the Global Advantage Bond
Fund may invest in derivative instruments.\26\
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    \26\ See supra, note 13.
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    The Global Advantage Bond Fund may invest, without limitation, in
securities denominated in foreign currencies and in U.S. dollar-
denominated securities of foreign issuers. The Fund may engage in
foreign currency transactions on a spot (cash) basis or forward basis
and may invest in foreign currency futures and exchange-traded and OTC
options contracts.\27\
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    \27\ See Amendment No. 2, supra note 6 at 18.
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    The Global Advantage Bond Fund may, without limitation, seek to
obtain market exposure to the securities in which it primarily invests
by entering into a series of purchase and sale contracts or by using
other investment techniques (such as buy backs or dollar rolls). The
Global Advantage Bond Fund may purchase or sell securities on a when-
issued, delayed delivery, or forward commitment basis and may engage in
short sales.\28\
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    \28\ See id.
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Global Advantage Bond Fund--Other (Non-Principal) Investments

    The Global Advantage Bond Fund may invest up to 10% of its total
assets in preferred stock, convertible securities, and other equity-
related securities. The Fund may invest in variable and floating rate
securities that are not Fixed Income Instruments.\29\ The Fund may
invest in floaters and inverse floaters that are not Fixed Income
Instruments \30\ and may engage in credit spread trades.
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    \29\ See id. at 19.
    \30\ See id.
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    The Global Advantage Bond Fund may invest in trade claims,
privately placed and unregistered securities, and exchange-traded and
OTC-traded structured products, including credit-linked securities,
commodity-linked notes, hybrid or ``indexed'' securities, event-linked
bonds, and structured notes. The Fund may invest in Brady Bonds.
    The Global Advantage Bond Fund may enter into repurchase agreements
on instruments other than Fixed Income Instruments.\31\ The Fund may
enter into reverse repurchase agreements on instruments other than
Fixed Income Instruments subject to the Fund's limitations on
borrowings.\32\
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    \31\ See id.
    \32\ See id.
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International Advantage Bond Fund--Principal Investments

    The International Advantage Bond Fund will seek total return
exceeding that of its benchmarks, consistent with prudent investment
management. The Fund will seek to achieve its investment objective by
investing, under normal circumstances, at least 80% of its assets in
Fixed Income Instruments and derivatives based on Fixed Income
Instruments that are economically tied to foreign countries,
representing at least three foreign countries (the ``International
Advantage Bond Fund 80% policy'').
    The International Advantage Bond Fund may invest in both
investment-grade debt securities and high-yield securities subject to a
maximum of 15% of its total assets in securities rated below B by
Moody's, S&P, or Fitch, or, if unrated, determined by PIMCO to be of
comparable quality.
    In furtherance of the International Advantage Bond Fund 80% policy,
or with respect to the Fund's other investments, the International
Advantage Bond Fund may invest in derivative instruments.\33\
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    \33\ See supra, note 13.
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    The International Advantage Bond Fund may invest, without
limitation, in securities denominated in foreign currencies and in U.S.
dollar-denominated securities of foreign issuers. The Fund may engage
in foreign currency transactions on a spot (cash)

basis or forward basis and may invest in foreign currency futures and
exchange-traded and OTC options contracts.\34\
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    \34\ See Amendment No. 2, supra note 6 at 20.
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    The International Advantage Bond Fund may, without limitation, seek
to obtain market exposure to the securities in which it primarily
invests by entering into a series of purchase and sale contracts or by
using other investment techniques (such as buy backs or dollar rolls).
The Fund may purchase or sell securities on a when-issued, delayed
delivery, or forward commitment basis and may engage in short
sales.\35\
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    \35\ See id. at 21.
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International Advantage Bond Fund--Other (Non-Principal) Investments

    The International Advantage Bond Fund may invest up to 10% of its
total assets in preferred stock, convertible securities, and other
equity-related securities.
    The International Advantage Bond Fund may invest in variable and
floating rate securities that are not Fixed Income Instruments.\36\ The
Fund may invest in floaters and inverse floaters that are not Fixed
Income Instruments \37\ and may engage in credit spread trades.
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    \36\ See id.
    \37\ See id.
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    The International Advantage Bond Fund may invest in trade claims,
privately placed and unregistered securities, and exchange-traded and
OTC-traded structured products, including credit-linked securities,
commodity-linked notes, hybrid or ``indexed'' securities, event-linked
bonds, and structured notes. The Fund may invest in Brady Bonds.
    The International Advantage Bond Fund may enter into repurchase
agreements on instruments other than Fixed Income Instruments.\38\ The
Fund may enter into reverse repurchase agreements on instruments other
than Fixed Income Instruments subject to the Fund's limitations on
borrowings.\39\
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    \38\ See id.
    \39\ See id.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Exchange
Act and the rules and regulations thereunder applicable to a national
securities exchange.\40\ In particular, the Commission finds that the
proposed rule change, as modified by Amendments No. 1 and No. 2, is
consistent with Section 6(b)(5) of the Exchange Act,\41\ which
requires, among other things, that the Exchange's rules be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest. The
Commission notes that the Funds and the Shares must comply with the
requirements of NYSE Arca Equities Rule 8.600 to be listed and traded
on the Exchange.
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    \40\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \41\ 15 U.S.C. 78f(b)(5).
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    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Exchange Act,\42\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. Quotation and last sale
information for the Shares will be available via the CTA high-speed
line.
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    \42\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services.\43\ Price
information relating to equity securities traded OTC will be available
from major market data vendors. Information regarding the previous
day's closing price and trading volume information for the Shares will
be published daily in the financial section of newspapers.\44\ Intra-
day and closing price information regarding equity securities traded on
a national securities exchange, including common stocks, preferred
stocks, securities convertible into stocks, closed-end funds, exchange
traded funds, and other equity-related securities, will be available
from the exchange on which such securities are traded.\45\ Intra-day
and closing price information regarding exchange-traded options
(including options on futures) and futures will be available from the
exchange on which such instruments are traded.\46\ Intra-day and
closing price information regarding Fixed Income Instruments also will
be available from major market data vendors. Price information relating
to forwards will be available from major market data vendors.\47\
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    \43\ See Amendment No. 2, supra note 6, at 32.
    \44\ See id.
    \45\ See id. at 31.
    \46\ See id. at 31-32.
    \47\ See id. at 32.
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    In addition, the PIV, as defined in NYSE Arca Equities Rule
8.600(c)(3), will be widely disseminated by one or more major market
data vendors at least every 15 seconds during the Core Trading
Session.\48\ The dissemination of the PIV, together with the Disclosed
Portfolio, may allow investors to determine an approximate value of the
underlying portfolio of each of the Funds on a daily basis and to
provide an estimate of that value throughout the trading day.\49\
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    \48\ Several major market data vendors display or make widely
available PIV taken from the CTA or other data feeds. See id.
    \49\ See id.
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    On each Business Day, before commencement of trading in Shares in
the Core Trading Session (9:30 a.m. E.T. to 4:00 p.m. E.T.) on the
Exchange, each of the Funds will disclose on the Trust's Web site the
Disclosed Portfolio as defined in NYSE Arca Equities Rule 8.600(c)(2)
that will form the basis for each of the Fund's calculation of NAV at
the end of the Business Day.\50\ The Trust's Web site
(www.pimcoetfs.com), which will be publicly available prior to the
public offering of Shares, will include a form of the prospectus for
each of the Funds that may be downloaded. The Trust's Web site will
include additional quantitative information updated on a daily basis,
including, for each of the Funds, (1) daily trading volume, the prior
business day's reported closing price, NAV and mid-point of the bid/ask
\51\ spread at the time of calculation of the NAV (the ``Bid/Ask
Price''), and a calculation of the premium and discount of the Bid/Ask
Price against the NAV, and (2) data in chart format displaying the
frequency distribution of discounts and premiums of the daily Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters.
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    \50\ See id. at 30.
    \51\ The Bid/Ask Price of each of the Funds will be determined
using the mid-point of the highest bid and the lowest offer on the
Exchange as of the time of calculation of that Fund's NAV. The
records relating to Bid/Ask Prices will be retained by each of the
Funds and their service providers. See id.
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    Further, the Commission believes that the proposal to list and
trade the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. On each Business Day, before commencement of trading in Shares
in the Core Trading Session (9:30 a.m. E.T.

to 4:00 p.m. E.T.) on the Exchange, each of the Funds will disclose on
the Trust's Web site the Disclosed Portfolio as defined in NYSE Arca
Equities Rule 8.600(c)(2) that will form the basis for each of the
Fund's calculation of NAV at the end of the Business Day.\52\ The
Commission notes that the Exchange will obtain a representation from
the issuer of the Shares that the NAV per Share will be calculated
daily and that the NAV and the Disclosed Portfolio will be made
available to all market participants at the same time.\53\
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    \52\ See id. On a daily basis, the Funds will disclose on the
Funds' Web site the following information regarding each portfolio
holding, as applicable to the type of holding: Ticker symbol, CUSIP
number or other identifier, if any; a description of the holding
(including the type of holding, such as the type of swap); the
identity of the security, commodity, index, or other asset or
instrument underlying the holding, if any; for options, the option
strike price; quantity held (as measured by, for example, par value,
notional value, or number of shares, contracts, or units); maturity
date, if any; coupon rate, if any; effective date, if any; market
value of the holding; and the percentage weighting of the holding in
a Fund's portfolio. Under accounting procedures followed by the
Funds, trades made on the prior business day (``T'') will be booked
and reflected in NAV on the current business day (``T+1'').
Accordingly, the Funds will be able to disclose at the beginning of
the business day the portfolio that will form the basis for the NAV
calculation at the end of the Business Day. See id. at 30-31.
    \53\ See id. at 33.
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    In addition, a basket composition file--which includes the security
names and share quantities, if applicable, required to be delivered in
exchange for a Fund's Shares, together with estimates and actual cash
components--will be publicly disseminated daily prior to the opening of
the Exchange via the NSCC. The basket will represent one Creation Unit
of each of the Funds.\54\
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    \54\ See id. at 31.
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    The Commission notes that the Reporting Authority (as defined in
NYSE Arca Equities Rule 8.600(c)(4)) that provides the Disclosed
Portfolio must implement and maintain, or be subject to, procedures
designed to prevent the use and dissemination of material non-public
information regarding the actual components of the portfolio.\55\
Further, personnel who make decisions on the Fund's portfolio
composition must be subject to procedures designed to prevent the use
and dissemination of material nonpublic information regarding the open-
end fund's portfolio.
---------------------------------------------------------------------------

    \55\ See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii).
---------------------------------------------------------------------------

    The Exchange represents that the Adviser is not registered as a
broker-dealer, but is affiliated with a broker-dealer, and will
implement a firewall with respect to such broker-dealer regarding
access to information concerning the composition of or changes to a
Fund's portfolio.\56\ The Exchange also has a general policy
prohibiting the distribution of material, non-public information by its
employees.
---------------------------------------------------------------------------

    \56\ See supra note 8 and accompanying text.
---------------------------------------------------------------------------

    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares.\57\ Trading in Shares will be halted if the
circuit breaker parameters in NYSE Arca Equities Rule 7.12 have been
reached. Trading also may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the securities or the financial instruments constituting
the Disclosed Portfolio of the Fund; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares will be subject
to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
circumstances under which Shares may be halted.
---------------------------------------------------------------------------

    \57\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

    The Exchange has represented that the Shares are deemed to be
equity securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity
securities.\58\
---------------------------------------------------------------------------

    \58\ See NYSE Arca Equities Rule 8.600(d)(2)(C)(ii).
---------------------------------------------------------------------------

    In support of this proposal, the Exchange has made the following
additional representations:
    (1) Each Fund's Shares will conform to the initial and continued
listing criteria under NYSE Arca Equities Rule 8.600.
    (2) The Exchange's surveillance procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and federal securities
laws applicable to trading on the Exchange.\59\
---------------------------------------------------------------------------

    \59\ The Financial Industry Regulatory Authority (``FINRA'')
surveils trading on the Exchange pursuant to a regulatory services
agreement. The Exchange is responsible for FINRA's performance under
this regulatory services agreement. See Amendment No. 2, supra note
6, at 33.
---------------------------------------------------------------------------

    (3) FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares, exchange-traded options, exchange-
traded equities, futures, and options on futures with other markets or
other entities that are members of the ISG, and FINRA may obtain
trading information regarding trading in the Shares, exchange-trade
options, exchange-traded equities, futures, and options on futures from
such markets or entities. In addition, the Exchange may obtain
information regarding trading in the Shares, exchange-traded options,
exchange-traded equities, futures, and options on futures from markets
or other entities that are members of ISG or with which the Exchange
has in place a comprehensive surveillance sharing agreement. FINRA, on
behalf of the Exchange, is able to access, as needed, trade information
for certain fixed income securities held by the Funds reported to
FINRA's Trade Reporting and Compliance Engine.
    (4) Not more than 10% of the net assets of a Fund in the aggregate
invested in exchange-traded equity securities shall consist of equity
securities, including stocks into which a convertible security is
converted, whose principal market is not a member of the ISG or is a
market with which the Exchange does not have a comprehensive
surveillance sharing agreement. Further, not more than 10% of the net
assets of a Fund in the aggregate invested in futures contracts or
exchange-traded options contracts shall consist of futures contracts or
exchange-traded options contracts whose principal market is not a
member of ISG or is a market with which the Exchange does not have a
comprehensive surveillance sharing agreement.\60\
---------------------------------------------------------------------------

    \60\ See id. at 34.
---------------------------------------------------------------------------

    (5) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (6) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit (``ETP'') Holders in an Information Bulletin
(``Bulletin'') of the special characteristics and risks associated with
trading the Shares. Specifically, the Bulletin will discuss the
following: (1) The procedures for purchases and redemptions of Shares
in Creation Unit aggregations (and that Shares are not individually
redeemable); (2) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated PIV will not be calculated or publicly
disseminated; (4) how information regarding the PIV is disseminated;
(5) the requirement that ETP Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (6) trading information.

    (7) For initial and continued listing, each Fund will be in
compliance with Rule 10A-3 under the Act,\61\ as provided by NYSE Arca
Equities Rule 5.3.\62\
---------------------------------------------------------------------------

    \61\ 17 CFR 240.10A-3.
    \62\ See Amendment No. 2, supra note 6, at 33.
---------------------------------------------------------------------------

    (8) Each Fund's investments, including investments in derivative
instruments, will be subject to all of the restrictions under the 1940
Act, including restrictions with respect to illiquid assets; that is,
the limitation that a Fund may hold up to an aggregate amount of 15% of
its net assets in illiquid assets (calculated at the time of
investment), including Rule 144A securities deemed illiquid by the
Adviser, consistent with Commission guidance.
    (9) A minimum of 100,000 Shares for each Fund will be outstanding
at the commencement of trading on the Exchange.
    This order is based on all of the Exchange's representations,
including those set forth above and in the Notice.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with the Exchange Act.

IV. Solicitation of Comments on Amendment No. 2

    Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 2 is consistent with the
Act. Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2014-57 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2014-57. 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-NYSEArca-2014-57, and should
be submitted on or before September 11, 2014.

V. Accelerated Approval of Proposed Rule Change as Modified by
Amendment Nos. 1 and 2

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendments No. 1 and No. 2, prior to the
thirtieth day after the date of publication of notice of Amendment No.
2 in the Federal Register. In Amendment No. 2, the Exchange included
additional information regarding the underlying investments of the
Funds which assisted the Commission in analyzing the trading of the
Shares on the Exchange. Accordingly, the Commission finds good cause,
pursuant to Section 19(b)(2) of the Act, to approve the proposed rule
change, as modified by Amendments No. 1 and No. 2, on an accelerated
basis.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\63\ that the proposed rule change, as modified by
Amendments No. 1 and No. 2, (SR-NYSEArca-2014-57), be, and it hereby
is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \63\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\64\
Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------

    \64\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2014-19806 Filed 8-20-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: April 20, 2006 (Volume 71, Number 76)]
[Notices]
[Page 20429-20430]
[DOCID:fr20ap06-67]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53653; File No. SR-NASD-2006-035]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Granting Accelerated Approval of Proposed Rule
Change Relating to Proposed Amendments to IM 2110-2 to Codify NASD's
Existing Position that the Manning Rule Applies to All Members, Whether
Acting as a Market Maker or Not

April 14, 2006.
    On March 6, 2006, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change relating to proposed amendments to NASD
Interpretive Material 2110-2, Trading Ahead of Customer Limit Order
(commonly referred to as the Manning Rule) to state that the rule
applies to all members, whether acting as a market maker or not. NASD
asked the Commission to grant accelerated approval to the proposed rule
change. The Commission stated it would consider granting accelerated
approval at the close of a 15-day comment period, and published the
proposed rule change for notice and comment in the Federal Register on
March 28, 2006.\3\ The Commission received no comments on the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 53527 (March 21,
2006), 71 FR 15503.
---------------------------------------------------------------------------

    The Commission has reviewed carefully the proposed rule change and
finds that the proposed rule change is consistent with the requirements
of the Act and the rules and regulations thereunder applicable to a
national securities association \4\ and, in particular, the
requirements of section

15A(b)(6) of the Act,\5\ which requires, among other things, NASD's
rules be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, and, in
general, to protect investors and the public interest. The Commission
believes that the proposed rule change will improve treatment of
customer limit orders and clarify the application of the Manning Rule
to non-market makers. The Commission believes the anticipated improved
treatment of customer limit orders and the clarification of the
application of the Manning Rule to non-market makers will benefit
investors and the public interest, and therefore, the Commission finds
good cause to approve the proposed rule change prior to the 30th day
after publication in the Federal Register.
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to section 19(b)(2) of the Act
\6\, that the proposed rule change (SR-NASD-2006-035) be, and it hereby
is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).
    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-5915 Filed 4-19-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 86, Number 34 (Tuesday, February 23, 2021)]
[Rules and Regulations]
[Pages 10787-10790]
[FR Doc No: 2021-03594]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0673; Product Identifier 2020-NM-076-AD; Amendment
39-21395; AD 2021-02-12]
RIN 2120-AA64

Airworthiness Directives; Airbus SAS Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for all
Airbus SAS Model A330-200 series airplanes, Model A330-200 Freighter
series airplanes, Model A330-300 series airplanes, Model A330-900
series airplanes, Model A340-200 series airplanes, Model A340-300
series airplanes, Model A340-500 series airplanes, Model A340-600
series airplanes, Model A380-800 series airplanes; and Model A350-941
and -1041 airplanes. This AD was prompted by a report of a quality
issue with a certain repair method of damage-through honeycomb core
cargo linings by speed patches applied to both sides. This AD requires
repair of each affected part, or replacement with a serviceable part,
as specified in a European Union Aviation Safety Agency (EASA) AD,
which is incorporated by reference. The FAA is issuing this AD to
address the unsafe condition on these products.

DATES: This AD is effective March 30, 2021.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of March 30,
2021.

ADDRESSES: For material incorporated by reference (IBR) in this AD,
contact the EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany;
telephone +49 221 8999 000; email<EMAIL_ADDRESS>internet
www.easa.europa.eu. You may find this IBR material on the EASA website
at https://ad.easa.europa.eu. You may view this IBR material at the
FAA, Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>. It is also available in
the AD docket on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2020-0673.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0673; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, any comments received, and other information. The
address for Docket Operations is U.S. Department of Transportation,
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200
New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Dan Rodina, Aerospace Engineer, Large
Aircraft Section, International Validation Branch, FAA, 2200 South
216th St., Des Moines, WA 98198; phone and fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2020-100R1, dated November 4, 2020
(EASA AD 2020-100R1) (also referred to as the Mandatory Continuing
Airworthiness Information, or the MCAI), to correct an unsafe condition
for all Airbus SAS Model A330-200 series airplanes, Model A330-200
Freighter series airplanes, Model A330-300 series airplanes, Model
A330-900 series airplanes, Model A340-200 series airplanes, Model A340-
300 series airplanes, Model A340-500 series airplanes, Model A340-600
series airplanes, Model A380-800 series airplanes; and Model A350-941
and -1041 airplanes.
    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to all Airbus SAS Model
A330-200 series airplanes, Model A330-200 Freighter series airplanes,
Model A330-300 series airplanes, Model A330-900 series airplanes, Model
A340-200 series airplanes, Model A340-300 series airplanes, Model A340-
500 series airplanes, Model A340-600 series airplanes, Model A380-800
series airplanes; and Model A350-941 and -1041 airplanes. The NPRM
published in the Federal Register on July 28, 2020 (85 FR 45350). The
NPRM was prompted by a report of a quality issue with a certain repair
method of damage-through honeycomb core cargo linings by speed patches
applied to both sides. The NPRM proposed to require a detailed
inspection of each affected part and, depending on findings, repair of
each affected part, or replacement with a serviceable part, as
specified in an EASA AD.
    The FAA is issuing this AD to address reduced ability of repaired
linings to contain smoke or fire, resulting in an increased risk of an
uncontained fire in the cargo compartment and consequent structural
damage to the airplane. See the MCAI for additional background
information.

Comments

    The FAA gave the public the opportunity to participate in
developing this final rule. The following presents the comments
received on the NPRM and the FAA's response to each comment.

Requests To Reference Revised EASA AD

    American Airlines and Delta Airlines (DAL) requested that the FAA
revise the proposed AD to reference EASA AD 2020-100R1. DAL pointed out
that there are several instances where the requirements in EASA AD
2020-0100 are unclear, contradictory to the source

documents, or unnecessarily restrictive to operators. DAL further
asserted that, if the final rule is published using EASA AD 2020-0100,
it will have to request several alternative methods of compliance
(AMOCs) in order to comply with the proposed requirements. In addition,
DAL provided a detailed discussion of the changes identified in EASA AD
2020-100R1 and how those changes would favorably impact operators,
pointing out that certain inspection and repair requirements necessary
to complete the actions specified in the proposed AD are clarified.
    The FAA agrees with the requests for the reasons provided. The FAA
has determined that the changes in EASA AD 2020-100R1 are relieving in
nature (removing the requirement for a one-time detailed inspection
(DET) of each affected part) and that this final rule should reference
the revised EASA AD. Therefore, the FAA has revised this AD to refer to
EASA AD 2020-100R1, dated November 4, 2020. The FAA has also revised
the SUMMARY and Related Service Information under 1 CFR part 51 and
Costs of Compliance sections of this AD to remove reference to the one-
time detailed inspection that is no longer required by this AD.

Request To Use Flight Days Instead of Calendar Days

    DAL requested that the proposed AD be revised to use flight days
instead of calendar days to ensure that the requirements can be easily
accomplished within a C-Check schedule. DAL noted that the inspection
and rework of the ceiling, partition, and sidewall linings in the
forward, aft and bulk cargo compartments is a labor-intensive activity
that will be difficult to accomplish in any check shorter than a C-
check without jeopardizing the `return to service' dates for affected
aircraft. Further, DAL noted that the required rework might then
require special visits in order to be fully accomplished. DAL stated
that due to the current global circumstances with the pandemic, some
operators have grounded airplanes and reduced workforces to help
account for decreased flying demand, so accommodating a special visit
will be more difficult than during normal operations. DAL noted that,
for operators that are affected by global circumstances, the
flammability risk of the discrepant repair should not be present when
the airplane is parked with no power and cargo, and that additional
time for compliance should be granted with an equivalent level of
safety present.
    The FAA disagrees with the request. Using flight days versus
calendar days would be difficult for operators to track AD compliance.
AD compliance requirements are calculated independently of scheduled
maintenance periods. Also, showing compliance with the AD does not
require the airplane to be on a C-check schedule. The FAA has
determined that a compliance time of 23 months from the effective date
of the AD represents an adequate amount of time to accomplish the
actions required. If an operator is unable to accomplish the actions
for whatever reason or has the airplane in storage, it may request
approval of an AMOC under the provisions of paragraph (i)(1) of this
AD. We have not changed this AD in this regard.

Request To Add Exceptions To Address Errors in Required for Compliance
(RC) Procedures

    DAL requested that the FAA add two exceptions to paragraph (h) of
the proposed AD to address errors in RC procedures specified in the
service information referenced in EASA AD 2020-100R1. DAL pointed out
that Aircraft Maintenance Manual (AMM) Task A330-A-25-XX-3743-02001-
690A-C specified in Airbus Service Bulletin A330-25-3743, dated
September 23, 2019, includes a typographical error in a measurement.
Additionally, DAL pointed out that AMM Task A330-A-25-XX-3743-01001-
520A-A specified in Airbus Service Bulletin A330-25-3743, dated
September 23, 2019, also specifies an incorrect AMM task reference for
removing cargo liners in the forward cargo compartment. DAL suggested
wording for the requested exceptions.
    The FAA has confirmed the typographical errors and agrees with the
request for the reasons provided. The FAA has revised paragraph (h) of
this AD accordingly.

Conclusion

    The FAA reviewed the relevant data, considered the comments
received, and determined that air safety and the public interest
require adopting this final rule with the changes described previously
and minor editorial changes. The FAA has determined that these minor
changes:
     Are consistent with the intent that was proposed in the
NPRM for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.
    The FAA also determined that these changes will not increase the
economic burden on any operator or increase the scope of this final
rule.

Related Service Information Under 1 CFR Part 51

    EASA AD 2020-100R1, dated November 4, 2020, describes procedures
for repair of each affected part, or replacement with a serviceable
part. This material is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

Costs of Compliance

    The FAA estimates that this AD affects 127 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
             Action                         Labor cost              Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Repair.........................  2 work-hours x $85 per hour =               * $            $170         $21,590
                                  $170.
----------------------------------------------------------------------------------------------------------------
* The FAA has received no definitive data that would enable the FAA to provide cost estimates for the parts
  required for the repairs specified in this AD.

    The FAA has received no definitive data that would enable the FAA
to provide cost estimates for the replacements specified in this AD.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.

    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13   [Amended]

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

2021-02-12 Airbus SAS: Amendment 39-21395; Docket No. FAA-2020-0673;
Product Identifier 2020-NM-076-AD.

(a) Effective Date

    This airworthiness directive (AD) is effective March 30, 2021.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all Airbus SAS airplanes identified in
paragraphs (c)(1) through (10) of this AD, certificated in any
category.
    (1) Model A330-201, -202, -203, -223, and -243 airplanes.
    (2) Model A330-223F and -243F airplanes.
    (3) Model A330-301, -302, -303, -321, -322, -323, -341, -342,
and -343 airplanes.
    (4) Model A330-941 airplanes.
    (5) Model A340-211, -212, and -213 airplanes.
    (6) Model A340-311, -312, and -313 airplanes.
    (7) Model A340-541 airplanes.
    (8) Model A340-642 airplanes.
    (9) Model A350-941 and -1041 airplanes.
    (10) Model A380-841, -842, and -861 airplanes.

(d) Subject

    Air Transport Association (ATA) of America Code 25, Equipment/
furnishings.

(e) Reason

    This AD was prompted by a report of a quality issue with a
certain repair method of damage-through honeycomb core cargo linings
by speed patches applied to both sides. The FAA is issuing this AD
to address reduced ability of repaired linings to contain smoke or
fire, resulting in an increased risk of an uncontained fire in the
cargo compartment and consequent structural damage to the airplane.

(f) Compliance

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

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, European Union Aviation Safety Agency (EASA) AD
2020-100R1, dated November 4, 2020 (EASA AD 2020-100R1).

(h) Exceptions to EASA AD 2020-100R1

    (1) Where EASA AD 2020-100R1 refers to its effective date, this
AD requires using the effective date of this AD.
    (2) Where EASA AD 2020-100R1 refers to ``19 May 2020 [the
effective date of EASA AD 2020-0100 at original issue],'' this AD
requires using the effective date of this AD.
    (3) Where task Aircraft Maintenance Manual (AMM) A330-A-25-XX-
3743-02001-690A-C specified in Airbus Service Bulletin A330-25-3743,
dated September 23, 2019, states the measured dimension shall be
equal to or more than ``30 mm (1.81 in),'' this AD requires using
the measured dimension of ``30 mm (1.18 in).''
    (4) Where AMM task A330-A-25-XX-3743-01001-520A-A of Airbus
Service Bulletin A330-25-3743, dated September 23, 2019, states,
``For the FWD cargo-compartment, refer to Ref. AMM Task 25-54-00-
000-801,'' this AD requires using, ``For the FWD cargo-compartment,
refer to Ref. AMM Task 25-52-00-000-801.''
    (5) The ``Remarks'' section of EASA AD 2020-100R1 does not apply
to this AD.

(i) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Large Aircraft Section, International Validation Branch, FAA, has
the authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or responsible Flight
Standards Office, as appropriate. If sending information directly to
the Large Aircraft Section, International Validation Branch, send it
to the attention of the person identified in paragraph (j) of this
AD. Information may be emailed to<EMAIL_ADDRESS>
Before using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, Large Aircraft
Section, International Validation Branch, FAA; or EASA; or Airbus
SAS's EASA Design Organization Approval (DOA). If approved by the
DOA, the approval must include the DOA-authorized signature.
    (3) Required for Compliance (RC): Except as required by
paragraph (i)(2) of this AD, if any service information contains
procedures or tests that are identified as RC, those procedures and
tests must be done to comply with this AD; any procedures or tests
that are not identified as RC are recommended. Those procedures and
tests that are not identified as RC may be deviated from using
accepted methods in accordance with the operator's maintenance or
inspection program without obtaining approval of an AMOC, provided
the procedures and tests identified as RC can be done and the
airplane can be put back in an airworthy condition. Any
substitutions or changes to procedures or tests identified as RC
require approval of an AMOC.

(j) Related Information

    For more information about this AD, contact Dan Rodina,
Aerospace Engineer, Large Aircraft Section, International Validation
Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; phone and
fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
(k) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) European Union Aviation Safety Agency (EASA) AD 2020-100R1,
dated November 4, 2020.
    (ii) [Reserved]
    (3) For EASA AD 2020-100R1, contact the EASA, Konrad-Adenauer-
Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 000; email
<EMAIL_ADDRESS>internet www.easa.europa.eu. You may find this

EASA AD on the EASA website at https://ad.easa.europa.eu.
    (4) You may view this material at the FAA, Airworthiness
Products Section, Operational Safety Branch, 2200 South 216th St.,
Des Moines, WA. For information on the availability of this material
at the FAA, call<PHONE_NUMBER>. This material may be found in the AD
docket on the internet at https://www.regulations.gov by searching
for and locating Docket No. FAA-2020-0673.
    (5) You may view this material that is incorporated by reference
at the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, email
<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on January 14, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-03594 Filed 2-22-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: October 15, 2008 (Volume 73, Number 200)]
[Notices]
[Page 61119-61120]
[DOCID:fr15oc08-82]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2008-0695; FRL-8384-8]

Kasugamycin; Receipt of Application for Emergency Exemption and
Solicitation of Public Comment

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: EPA has received a specific exemption request from the
Michigan Department of Agriculture to use the pesticide kasugamycin
(CAS No. 6980-18-3) to treat up to 10,000 acres of apples to control
fire blight. The applicant proposes the use of a new chemical which has
not been registered by the EPA. EPA is soliciting public comment before
making the decision whether or not to grant the exemption.

DATES: Comments must be received on or before October 30, 2008.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2008-0695, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
     Mail: Office of Pesticide Programs (OPP) Regulatory Public
Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania
Ave., NW., Washington, DC 20460-0001.
     Delivery: OPP Regulatory Public Docket (7502P),
Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South
Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only
accepted during the Docket Facility's normal hours of operation (8:30
a.m. to 4 p.m., Monday through Friday, excluding legal holidays).
Special arrangements should be made for deliveries of boxed
information. The Docket Facility telephone number is<PHONE_NUMBER>.
    Instructions: Direct your comments to docket ID number EPA-HQ-OPP-
2008-0695. EPA's policy is that all comments received will be included
in the docket without change and may be made available on-line at
http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through regulations.gov or e-
mail. The regulations.gov website is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through regulations.gov,
your e-mail address will be automatically captured and included as part
of the comment that is placed in the docket and made available on the
Internet. If you submit an electronic comment, EPA recommends that you
include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the docket are listed in the docket index
available at http://www.regulations.gov. Although listed in the index,
some information is not publicly available, e.g., CBI or other

information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, is not placed on the Internet
and will be publicly available only in hard copy form. Publicly
available docket materials are available either in the electronic
docket at http://www.regulations.gov, or, if only available in hard
copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac
Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The hours of
operation of this Docket Facility are from 8:30 a.m. to 4 p.m., Monday
through Friday, excluding legal holidays. The Docket Facility telephone
number is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Andrew Ertman, Registration Division
(7505P), Office of Pesticide Programs, Environmental Protection Agency,
1200 Pennsylvania Ave., NW., Washington, DC 20460-0001; telephone
number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Action Apply to Me?

    You may be potentially affected by this action if you are an
agricultural producer, food manufacturer, or pesticide manufacturer.
Potentially affected entities may include, but are not limited to:
     Crop production (NAICS code 111).
     Animal production (NAICS code 112).
     Food manufacturing (NAICS code 311).
     Pesticide manufacturing (NAICS code 32532).
    This listing is not intended to be exhaustive, but rather provides
a guide for readers regarding entities likely to be affected by this
action. Other types of entities not listed in this unit could also be
affected. The North American Industrial Classification System (NAICS)
codes have been provided to assist you and others in determining
whether this action might apply to certain entities. If you have any
questions regarding the applicability of this action to a particular
entity, consult the person listed under FOR FURTHER INFORMATION
CONTACT.

B. What Should I Consider as I Prepare My Comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
www.regulations.gov or e-mail. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When submitting comments,
remember to:
    i. Identify the document by docket ID number and other identifying
information (subject heading, Federal Register date and page number).
    ii. Follow directions. The Agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
    iii. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
    iv. Describe any assumptions and provide any technical information
and/or data that you used.
    v. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    vi. Provide specific examples to illustrate your concerns and
suggest alternatives.
    vii. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
    viii. Make sure to submit your comments by the comment period
deadline identified.
    3. Environmental Justice. EPA seeks to achieve environmental
justice, the fair treatment and meaningful involvement of any group,
including minority and/or low income populations, in the development,
implementation, and enforcement of environmental laws, regulations, and
policies. To help address potential environmental justice issues, the
Agency seeks information on any groups or segments of the population
who, as a result of their location, cultural practices, or other
factors, may have atypical or disproportionately high and adverse human
health impacts or environmental effects from exposure to the pesticides
discussed in this document, compared to the general population.

II. What Action is the Agency Taking?

    Under section 18 of the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA) (7 U.S.C. 136p), at the discretion of the
Administrator, a Federal or State agency may be exempted from any
provision of FIFRA if the Administrator determines that emergency
conditions exist which require the exemption. The Michigan Department
of Agriculture has requested the Administrator to issue a specific
exemption for the use of kasugamycin on apples to control fire blight.
Information in accordance with 40 CFR part 166 was submitted as part of
this request.
    As part of this request, the applicant asserts that kasugamycin is
needed to control streptomycin-resistant strains of Erwinia amylovora,
the causal pathogen of fire blight due to lack of available
alternatives and effective alternative control practices. Without the
use of kasugamycin, the applicant states that up to 50% of the yield of
susceptible apple varieties could be lost in 2008.
    The Applicant proposes to make no more than 4 applications of
Kasumin 2L on 10,000 acres of apples between April 20 and May 31, 2009
in Berrien, Cass, Ionia, Kent, Montcalm, Newaygo, Oceana, Ottawa, and
Van Buren counties in Michigan. As currently proposed, the maximum
amount of product to be applied would be 20,000 gallons.
    This notice does not constitute a decision by EPA on the
application itself. The regulations governing section 18 of FIFRA
require publication of a notice of receipt of an application for a
specific exemption proposing use of a new chemical (i.e., an active
ingredient) which has not been registered by EPA.
    The notice provides an opportunity for public comment on the
application.
    The Agency, will review and consider all comments received during
the comment period in determining whether to issue the specific
exemption requested by the Michigan Department of Agriculture.

List of Subjects

    Environmental protection, Pesticides and pests.

    Dated: September 29, 2008.
Donald R. Stubbs,
 Acting Director, Registration Division, Office of Pesticide Programs.
[FR Doc. E8-24019 Filed 10-14-08; 8:45 am]

BILLING CODE 6560-50-S


[Federal Register Volume 88, Number 83 (Monday, May 1, 2023)]
[Notices]
[Page 26640]
[FR Doc No: 2023-09117]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-2023-0976]

Agency Information Collection Activities: Requests for Comments;
Clearance of a Renewed Approval of Information Collection: National Air
Tours Safety Standards

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice and request for comments.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA
invites public comments about our intention to request the Office of
Management and Budget (OMB) approval to renew an information
collection. The collection involves requirements in FAA regulations
that set safety and oversight rules for a broad variety of sightseeing
and commercial air tour flights to improve the overall safety of
commercial air tours by requiring all air tours to submit information.

DATES: Written comments should be submitted by June 30, 2023.

ADDRESSES: Please send written comments:
    By Electronic Docket: www.regulations.gov (Enter docket number into
search field).
    By mail: Sandra Ray, Federal Aviation Administration, Voluntary
Programs and Rulemaking Section AFS-260, 1187 Thorn Run Road, Suite
200, Coraopolis, PA 15108.
    By fax:<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: [email protected]; phone: 412-329-
3088.

SUPPLEMENTARY INFORMATION:
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for FAA's performance; (b) the
accuracy of the estimated burden; (c) ways for FAA to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.
    OMB Control Number: 2120-0717.
    Title: National Air Tours Safety Standards.
    Form Numbers: None.
    Type of Review: Renewal of an information collection.
    Background: FAA regulations set safety and oversight rules for a
broad variety of sightseeing and commercial air tour flights to improve
the overall safety of commercial air tours by requiring all air tour
operators to submit information. The FAA uses the information it
collects and reviews to ensure compliance and adherence to regulations
and, if necessary, take enforcement action on violators of the
regulations.
    Respondents: Commercial Air Tour Operators.
    Frequency: Information is collected on occasion.
    Estimated Average Burden per Response: Varies by Response.
    Estimated Total Annual Burden: 1,400 Hours.

    Issued in Washington, DC, on April 26, 2023.
Sandra L. Ray,
Aviation Safety Inspector, AFS-260.
[FR Doc. 2023-09117 Filed 4-28-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Page 17656]
[FR Doc No: 2017-07355]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER17-1381-000]

AEM Wind, LLC; Supplemental Notice That Initial Market-Based Rate
Filing Includes Request for Blanket Section 204 Authorization

    This is a supplemental notice in the above-referenced proceeding of
AEM Wind, LLC`s application for market-based rate authority, with an
accompanying rate tariff, noting that such application includes a
request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is April 26, 2017.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
5 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the Web site that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
For assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.

    Dated: April 6, 2017.
Kimberly D. Bose,
Secretary.
[FR Doc. 2017-07355 Filed 4-11-17; 8:45 am]
 BILLING CODE 6717-01-P