60582 Federal Register / Vol. 81, No. 171 / Friday, September 2, 2016 / Rules and Regulations 

1See ‘‘USCIS Reaches CW–1 Cap for Fiscal Year 

2016,’’ available at https://www.uscis.gov/news/ 

alerts/uscis-reaches-cw-1-cap-fiscal-year-2016. 

2015, 79 FR 58241 (Sept. 29, 2014). 

Since the Secretary of Labor extended 

the CW program at least until December 

31, 2019, DHS decided to preserve the 

status quo, or current conditions, rather 

than aggressively reduce CW–1 numbers 

for FY 2015. DHS therefore reduced the 

numerical limitation nominally by one, 

resulting in an FY 2015 limit of 13,999. 

See id. 

On December 16, 2014, Congress 

amended the law to extend the 

transition period until December 31, 

2019. See Consolidated and Further 

Continuing Appropriations Act, 2015, 

Public Law 113–235, sec. 10, 128 Stat. 

2130, 2134 (codified at 48 U.S.C. 

1806(d)). Congress also eliminated the 

Secretary of Labor’s authority to provide 

for future extensions of the CW–1 

program, requiring the CW–1 program to 

end (or sunset) on December 31, 2019. 

See id. 

For FY 2016, DHS reduced the 

numerical limitation by 1,000 to a limit 

of 12,999. See CNMI-Only Transitional 

Worker Numerical Limitation for Fiscal 

Year 2016, 80 FR 63911 (Oct. 22, 2015). 

On May 20, 2016, U.S. Citizenship and 

Immigration Services (USCIS) notified 

the public that it had received a 

sufficient number of petitions to reach 

the numerical limit (the ‘‘cap’’) of 

12,999 workers who may be issued CW– 

1 visas or otherwise provided with CW– 

1 status for FY 2016. The USCIS Update 

advised stakeholders that May 5, 2016 

was the final receipt date for CW–1 

worker petitions requesting an 

employment start date before October 1, 

2016.1

II. Maximum Number of CW–1 

Nonimmigrant Workers for Fiscal Year 

2017 

The CNRA requires an annual 

reduction in the number of transitional 

workers but does not mandate a specific 

numerical reduction. See 48 U.S.C. 

1806(d)(2). In addition, DHS regulations 

provide that the numerical limitation for 

any fiscal year will be less than the 

number established for the previous 

fiscal year, and that the adjusted 

number will be reasonably calculated to 

reduce the number of CW–1 

nonimmigrant workers to zero by the 

end of the program. 8 CFR 

214.2(w)(1)(viii)(C). DHS may adjust the 

numerical limitation at any time by 

publishing a notice in the Federal 

Register, but the Department may only 

reduce the figure. See 8 CFR 

214.2(w)(1)(viii)(D). 

Because the CW–1 numerical limit 

was reached for FY 2016 on May 5, DHS 

has decided to preserve the status quo, 

or current conditions, rather than 

aggressively reduce CW–1 numbers for 

FY 2017. DHS recognizes that any 

numerical limitation must account for 

the fact that the CNMI economy 

continues to be based on a workforce 

composed primarily of foreign workers. 

DHS must reduce the annual numerical 

limitation as statutorily mandated. At 

the same time, DHS should ensure that 

there are enough CW–1 workers for 

future fiscal years until the end of the 

program. DHS therefore is reducing the 

numerical limitation nominally by one, 

resulting in an FY 2017 limit of 12,998. 

This new numerical limitation 

preserves access to foreign labor in the 

CNMI. Accordingly, DHS is reducing 

the maximum number of transitional 

workers from the current fiscal year 

numerical limitation of 12,999 and 

establishing 12,998 as the maximum 

number of persons who may be granted 

CW–1 nonimmigrant status in FY 2017. 

DHS nonetheless emphasizes that the 

statute requires the Department to 

reduce the annual numerical limitation 

to zero no later than the end of calendar 

year 2019. It therefore may be prudent 

for CNMI employers and CW–1 workers 

to plan for more significant reductions 

in the annual numerical limitation in 

the years ahead. 

The FY 2017 numerical limitation for 

CW–1 nonimmigrant workers will be in 

effect beginning on October 1, 2016. 

Consistent with the rules applicable to 

other nonimmigrant worker visa 

classifications, if the numerical 

limitation for the fiscal year is not 

reached, the unused numbers do not 

carry over to the next fiscal year. See 8 

CFR 214.2(w)(1)(viii)(E). 

Generally, each CW–1 nonimmigrant 

worker with an approved employment 

start date that falls within FY 2017 

(October 1, 2016—September 30, 2017) 

will be counted against the new 

numerical limitation of 12,998. 

Counting each CW–1 nonimmigrant 

worker in this manner will help ensure 

that USCIS does not approve requests 

that would exceed the numerical 

limitation of 12,998 CW–1 

nonimmigrant workers granted such 

status in FY 2017. 

This notice does not affect the current 

immigration status of foreign workers 

who have CW–1 nonimmigrant status. 

Foreign workers, however, will be 

affected by this notice when their CNMI 

employers file: 

• For an extension of their CW–1 

nonimmigrant classification, or 

• A change of status from another 

nonimmigrant status to that of CW–1 

nonimmigrant status. 

This notice does not affect the status 

of any individual currently holding 

CW–2 nonimmigrant status as the 

spouse or minor child of a CW–1 

nonimmigrant worker. This notice also 

does not directly affect the ability of any 

individual to extend or otherwise obtain 

CW–2 status, as the numerical 

limitation applies to CW–1 principals 

only. This notice, however, may 

indirectly affect individuals seeking 

CW–2 status since their status depends 

on the CW–1 principal’s ability to 

obtain or retain CW–1 status. 

Jeh Charles Johnson, 

Secretary. 

[FR Doc. 2016–21325 Filed 8–31–16; 4:15 pm] 

BILLING CODE 9111–97–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2016–4123; Directorate 

Identifier 2016–NE–06–AD; Amendment 39– 

18640; AD 2016–18–10] 

RIN 2120–AA64 

Airworthiness Directives; International 

Aero Engines AG Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

International Aero Engines AG (IAE) 

V2522–A5, V2524–A5, V2525–D5, 

V2527–A5, V2527E–A5, V2527M–A5, 

V2528–D5, V2530–A5, and V2533–A5 

turbofan engines. This AD was 

prompted by the fracture of the highpressure turbine (HPT) stage 2 hub 

during flight, which resulted in an inflight shutdown (IFSD), undercowl fire, 

and smoke in the cabin. This AD 

requires inspecting the HPT stage 1 hub 

and HPT stage 2 hub, and, if necessary, 

their replacement with parts that are 

eligible for installation. We are issuing 

this AD to prevent failure of the HPT 

stage 1 or HPT stage 2 hubs, which 

could result in uncontained HPT blade 

release, damage to the engine, and 

damage to the airplane. 

DATES: This AD is effective October 7, 

2016. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of October 7, 2016. 


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Federal Register / Vol. 81, No. 171 / Friday, September 2, 2016 / Rules and Regulations 60583 

ADDRESSES: For service information 

identified in this final rule, contact 

International Aero Engines AG, 400 

Main Street, East Hartford, CT 06118; 

phone: 800–565–0140; email: help24@

pw.utc.com; Internet: http://

fleetcare.pw.utc.com. You may view this 

referenced service information at the 

FAA, Engine & Propeller Directorate, 

1200 District Avenue, Burlington, MA. 

For information on the availability of 

this material at the FAA, call 781–238– 

7125. It is also available on the internet 

at http://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2016–4123. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2016– 

4123; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Document Management Facility, 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: 

Brian Kierstead, Aerospace Engineer, 

Engine Certification Office, FAA, Engine 

& Propeller Directorate, 1200 District 

Avenue, Burlington, MA 01803; phone: 

781–238–7772; fax: 781–238–7199; 

email: brian.kierstead@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to certain IAE V2522–A5, V2524– 

A5, V2525–D5, V2527–A5, V2527E–A5, 

V2527M–A5, V2528–D5, V2530–A5, 

and V2533–A5 turbofan engines. The 

NPRM published in the Federal 

Register on April 5, 2016 (81 FR 19516). 

The NPRM was prompted by the 

fracture of the HPT stage 2 hub during 

flight, which resulted in an IFSD, 

undercowl fire, and smoke in the cabin. 

The NPRM proposed to require 

inspecting the HPT stage 1 hub and HPT 

stage 2 hub, and, if necessary, their 

replacement with parts that are eligible 

for installation. We are issuing this AD 

to prevent failure of the HPT stage 1 or 

HPT stage 2 hubs, which could result in 

uncontained HPT blade release, damage 

to the engine, and damage to the 

airplane. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. The 

following presents the comments 

received on the NPRM and the FAA’s 

response to each comment. 

Request To Add Credit for Previous 

Action 

IAE and Cathay Pacific requested that 

we update this AD to refer to NonModification Service Bulletin (NMSB) 

V2500–ENG–72–0661 Revision 2, dated 

May 27, 2016, and allow credit for 

previous actions to include hubs 

inspected and cleared to IAE’s NMSB 

V2500–ENG–72–0661, Original issue, 

dated November 10, 2015; and Revision 

1, dated February 5, 2016. 

We agree. We updated this AD to refer 

to NMSB V2500–ENG–72–0661, 

Revision 2, dated May 27, 2016. We are 

also including a Credit for Previous 

Actions paragraph that references IAE 

NMSB V2500–ENG–72–0661, Original 

issue, dated November 10, 2015; and 

Revision 1, dated February 5, 2016. 

Request To Change Compliance Time 

IndiGo and Cathay Pacific stated that 

the NPRM uses hub cycles since new 

(CSN) to determine when hub 

inspections are required. However, the 

commenters requested that this AD be 

specific as to the date on which CSN of 

the hubs are established. The IAE 

NMSB, Compliance Section, Table 1 

refers to a compliance time within ‘‘Hub 

cycles as of February 1, 2016’’, but the 

NPRM does not mention any date. One 

commenter states that compliance to the 

February 1, 2016 date will not provide 

adequate planning time to operators for 

compliance. 

We agree. This AD requires actions 

after the effective date of this AD. 

Therefore, we changed paragraphs 

(e)(1)(i), (ii), (iii), and (iv) of this AD to 

read ‘‘for hubs with [xxx] CSN on the 

effective date of this AD’’. 

Request To Change Compliance Time 

Germanwings GmbH requested that 

the effective date of this AD be aligned 

with IAE NMSB V2500–ENG–72–0661, 

Revision 2, dated May 27, 2016, which 

refers to ‘‘Hub cycles as of February 1, 

2016.’’ The commenter states that the 

difference in time between the effective 

date of this AD and February 1, 2016 

listed in the NMSB will cause a 

mismatch in the compliance time. 

We disagree. Basing the compliance 

times on the effective date of this AD is 

less restrictive than the IAE NMSB, so 

complying with this AD based on hub 

CSN as of the earlier NMSB date, would 

satisfy this AD. We did not change this 

AD. 

Request To Change Shop Visit 

Definition 

Delta Airlines and one other 

commenter requested that we change 

the definition of shop visit from 

separation of pairs of major mating 

engine flanges, to either piece-part 

exposure, HPT flange separation, or 

disassembly of the HPT rotor and stator 

assemblies. 

Delta Airlines stated that compliance 

at the next shop visit, as defined in this 

AD would result in unnecessary cost 

and extended shop time. The other 

commenter stated that changing the 

definition would allow more flexibility 

in fleet management. Both commenters 

state that inspection at the next shop 

visit is not needed, since removal of the 

suspect hubs within the proposed cycle 

limits will provide an acceptable level 

of safety. 

We disagree. Allowing all engines to 

operate until their respective cycle limit 

would not provide an acceptable level 

of safety. By inspecting a specific 

quantity of engines that will be inducted 

into the shop before the cycle limit 

occurs, the safety risk assessment is 

satisfied. Therefore, waiting until the 

piece-part exposure, HPT flange 

separation, or the cycle threshold in lieu 

of inspection at the next shop visit, does 

not meet the requirement of this AD. We 

did not change this AD. 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting this AD 

with the changes described previously. 

We have determined that these minor 

changes: 

• Are consistent with the intent that 

was proposed in the NPRM (81 FR 

19516, April 5, 2016) for correcting the 

unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM (81 FR 19516, 

April 5, 2016). 

Related Service Information Under 1 

CFR Part 51 

We reviewed IAE NMSB V2500– 

ENG–72–0661, Revision 2, dated May 

27, 2016. The NMSB describes 

procedures for inspecting the HPT stage 

1 and stage 2 hubs. This service 

information is reasonably available 

because the interested parties have 

access to it through their normal course 

of business or by the means identified 

in the ADDRESSES section. 


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60584 Federal Register / Vol. 81, No. 171 / Friday, September 2, 2016 / Rules and Regulations 

Costs of Compliance 

We estimate that this AD affects 668 

engines with 947 hubs installed on 

airplanes of U.S. registry. Some of the 

668 engines have two hubs installed. 

We estimate that it would take about 8 

hours per hub to perform the piece-part 

inspection. The average labor rate is $85 

per hour. We estimate that 568 hubs 

will require replacement. We estimate 

the pro-rated cost to replace an HPT 

stage 1 hub to be $50,271 and the prorated cost to replace an HPT stage 2 hub 

to be $40,063. Based on these figures, 

we estimate the cost of this AD on U.S. 

operators to be $26,298,816. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII: 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701: 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

This AD will not have federalism 

implications under Executive Order 

13132. This AD will not have a 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

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 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2016–18–10 International Aero Engines 

AG: Amendment 39–18640; Docket No. 

FAA–2016–4123; Directorate Identifier 

2016–NE–06–AD. 

(a) Effective Date 

This AD is effective October 7, 2016. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to International Aero 

Engines AG (IAE) V2522–A5, V2524–A5, 

V2525–D5, V2527–A5, V2527E–A5, 

V2527M–A5, V2528–D5, V2530–A5, and 

V2533–A5 engines with either of the 

following installed: 

(1) High-pressure turbine (HPT) stage 1 

hub, part number (P/N) 2A5001, with a serial 

number (S/N) listed in Table 1, Appendix A, 

of IAE Non-Modification Service Bulletin 

(NMSB) V2500–ENG–72–0661, Revision 2, 

dated May 27, 2016; or 

(2) HPT stage 2 hub, P/N 2A4802, with an 

S/N listed in Table 2, Appendix A, of IAE 

NMSB V2500–ENG–72–0661, Revision 2, 

dated May 27, 2016. 

(d) Unsafe Condition 

This AD was prompted by the fracture of 

the HPT stage 2 hub during flight, which 

resulted in an in-flight shutdown, undercowl 

fire, and smoke in the cabin. We are issuing 

this AD to prevent failure of the HPT stage 

1 or HPT stage 2 hubs, which could result in 

uncontained HPT blade release, damage to 

the engine, and damage to the airplane. 

(e) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(1) Inspect the HPT stage 1 hub, P/N 

2A5001, and HPT stage 2 hub, P/N 2A4802, 

at the next shop visit or as follows, 

whichever comes first: 

(i) For hubs with 0 to 7,000 CSN on the 

effective date of this AD, before accumulating 

13,000 CSN; 

(ii) For hubs with 7,001 to 11,000 CSN on 

the effective date of this AD, within 6,000 

cycles from the effective date of this AD or 

before accumulating 15,000 CSN, whichever 

occurs first; 

(iii) For hubs with 11,001 to 15,500 CSN 

on the effective date of this AD, within 4,000 

cycles from the effective date of this AD or 

before accumulating 17,000 CSN, whichever 

occurs first; 

(iv) For hubs with 15,501 CSN or more on 

the effective date of this AD, within 1,500 

cycles from the effective date of this AD. 

(2) Use Accomplishment Instructions, 

paragraphs 2.A., 2.C., and 2.D., of IAE NMSB 

V2500–ENG–72–0661, Revision 2, dated May 

27, 2016, to inspect the HPT stage 1 hub, P/ 

N 2A5001. 

(3) Use Accomplishment Instructions, 

paragraphs 2.E., 2.G., and 2H., of IAE NMSB 

V2500–ENG–72–0661, Revision 2, dated May 

27, 2016 to inspect the HPT stage 2 hub, P/ 

N 2A4802. 

(4) Remove from service any HPT stage 1 

hub, P/N 2A5001, or HPT stage 2 hub, P/N 

2A4802, that fails the inspections required by 

paragraphs (e)(2) and (e)(3) of this AD, and 

replace with a part that is eligible for 

installation. 

(f) Definition 

For the purpose of this AD, a ‘‘shop visit’’ 

is the induction of an engine into the shop 

for maintenance involving the separation of 

pairs of major mating engine flanges, except 

that the separation of engine flanges solely 

for the purposes of transportation without 

subsequent engine maintenance does not 

constitute an engine shop visit. 

(g) Credit for Previous Actions 

If you performed inspection and or 

replacement using IAE NMSB V2500–ENG– 

72–0661, original issue, dated November 10, 

2015 or NMSB V2500–ENG–72–0661, 

Revision 1, dated February 5, 2016, you met 

the requirements of paragraphs (e)(2) and 

(e)(3) of this AD. 

(h) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

FAA, may approve AMOCs for this AD. Use 

the procedures found in 14 CFR 39.19 to 

make your request. You may email your 

request to: ANE-AD-AMOC@faa.gov. 

(i) Related Information 

For more information about this AD, 

contact Brian Kierstead, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 1200 District Avenue, 

Burlington, MA 01803; phone: 781–238– 

7772; fax: 781–238–7199; email: 

brian.kierstead@faa.gov. 

(j) 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 the AD specifies otherwise. 

(i) International Aero Engines AG NonModification Service Bulletin V2500–ENG– 

72–0661, Revision 2, dated May 27, 2016. 

(ii) Reserved. 


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Federal Register / Vol. 81, No. 171 / Friday, September 2, 2016 / Rules and Regulations 60585 

1Public Law 111–203, section 761(a) (adding 

Exchange Act section 3(a)(75) (defining ‘‘securitybased swap data repository’’)) and section 763(i) 

(adding Exchange Act section 13(n) (establishing a 

regulatory regime for security-based swap data 

repositories)). 

References in this release to the terms ‘‘data 

repository,’’ ‘‘trade repository,’’ ‘‘repository’’ or 

‘‘SDR’’ generally address security-based swap data 

repositories unless stated otherwise. 

2Exchange Act section 13(n)(5)(G), 15 U.S.C. 

78m(n)(5)(G). The confidentiality requirements 

addressed by Exchange Act section 24, 15 U.S.C. 

78x, are addressed below. See note 83, infra. As 

initially adopted, this provision addressed access to 

‘‘all’’ data obtained by the security-based swap data 

repository. As amended by Congress in 2015, the 

reference to ‘‘all’’ was replaced by a reference to 

‘‘security-based swap’’ data. See Public Law 114– 

94, section 86011(c)(1)(A) (striking ‘‘all’’ and adding 

‘‘security-based swap’’ in the introductory part of 

Exchange Act section 13(n)(5)(G)). 

3As discussed below, the term ‘‘prudential 

regulator’’ encompasses the Board of Governors of 

the Federal Reserve System and certain other 

regulators, with regard to certain categories of 

regulated entities. See note 26, infra. 

4Exchange Act section 13(n)(5)(G), 15 U.S.C. 

78m(n)(5)(G). As initially adopted this provision 

did not reference ‘‘other foreign authorities.’’ That 

provision was added by Congress in December 

2015. See Public Law 114–94, section 

86011(c)(1)(B) (adding paragraph (G)(v)(IV) to 

Exchange Act section 13(n)(5)). 

5Exchange Act section 13(n)(5)(H), 15 U.S.C. 

78m(n)(5)(H). 

6See Dodd Frank Act section 763(i) (adding 

former Exchange Act section 13(n)(5)(H)(ii)). 

7See Public Law 114–94, section 86011(c)(2). 

8See Exchange Act Release No. 75845 (Sept. 4, 

2015), 80 FR 55182 (Sept. 14, 2015) (‘‘Proposing 

Release’’). 

9See generally Proposing Release, 80 FR at 

55182–84 (discussing relevant provisions of 2010 

proposed rules regarding security-based swap data 

repositories, and 2013 proposed rules regarding 

cross-border application of Title VII). 

10See Exchange Act Release No. 74246 (Feb. 11, 

2015), 80 FR 14438 (Mar. 19, 2015) (‘‘SDR Adopting 

Release’’). Those rules did not address the data 

access requirements applicable to data repositories, 

and the Commission stated that final resolution of 

the issue would benefit from further consideration 

and public comment. See SDR Adopting Release, 80 

FR at 14487–88. 

(3) For International Aero Engines AG 

service information identified in this AD, 

contact International Aero Engines AG, 400 

Main Street, East Hartford, CT 06118; phone: 

800–565–0140; email: help24@pw.utc.com; 

Internet: http://fleetcare.pw.utc.com. 

(4) You may view this service information 

at FAA, Engine & Propeller Directorate, 1200 

District Avenue, Burlington, MA. For 

information on the availability of this 

material at the FAA, call 781–238–7125. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Burlington, Massachusetts, on 

August 26, 2016. 

Colleen M. D’Alessandro, 

Manager, Engine & Propeller Directorate, 

Aircraft Certification Service. 

[FR Doc. 2016–21061 Filed 9–1–16; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 240 

[Release No. 34–78716; File No. S7–15–15] 

RIN 3235–AL74 

Access to Data Obtained by SecurityBased Swap Data Repositories 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: Pursuant to section 763(i) of 

Title VII (‘‘Title VII’’) of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act of 2010 (‘‘Dodd-Frank 

Act’’), the Securities and Exchange 

Commission (‘‘Commission’’) is 

adopting amendments to rule 13n–4 

under the Securities Exchange Act of 

1934 (‘‘Exchange Act’’) related to 

regulatory access to security-based swap 

data held by security-based swap data 

repositories. The rule amendments 

would implement the conditional 

Exchange Act requirement that securitybased swap data repositories make data 

available to certain regulators and other 

authorities. 

DATES: Effective November 1, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Carol McGee, Assistant Director, Joshua 

Kans, Senior Special Counsel, or 

Kateryna Imus, Special Counsel, at (202) 

551–5870; Division of Trading and 

Markets, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–7010. 

SUPPLEMENTARY INFORMATION: The 

Commission is adding paragraphs (b)(9) 

and (b)(10) to Exchange Act rule 13n– 

4 to implement the statutory 

requirement that security-based swap 

data repositories conditionally provide 

data to certain regulators and other 

authorities. The Commission also is 

adding paragraph (d) to rule 13n–4 to 

specify the method to be used to comply 

with the associated statutory 

notification requirement. 

I. Background 

A. Statutory Requirements for Access to 

Security-Based Swap Data Repository 

Information, as Amended 

Title VII of the Dodd-Frank Act 

amended the Exchange Act to provide a 

comprehensive regulatory framework 

for security-based swaps, including the 

regulation of security-based swap data 

repositories.1

Those amendments, among other 

things, require that security-based swap 

data repositories make data available to 

certain regulators and other entities. In 

particular, the amendments 

conditionally require that security-based 

swap data repositories ‘‘on a 

confidential basis pursuant to section 

24, upon request, and after notifying the 

Commission of the request, make 

available security-based swap data 

obtained by the security-based swap 

data repository, including individual 

counterparty trade and position data’’ to 

specified recipients.2 As provided by 

the statute, these recipients include 

‘‘each appropriate prudential 

regulator’’ 3; the Financial Stability 

Oversight Council (‘‘FSOC’’); the 

Commodity Futures Trading 

Commission (‘‘CFTC’’); the Department 

of Justice; and ‘‘any other person that 

the Commission determines to be 

appropriate,’’ including foreign 

financial supervisors (including foreign 

futures authorities), foreign central 

banks, foreign ministries and other 

foreign authorities.4

Access to data pursuant to these 

provisions is conditioned on the 

repository receiving ‘‘a written 

agreement from each entity stating that 

the entity shall abide by the 

confidentiality requirements described 

in section 24 relating to the information 

on security-based swap transactions that 

is provided.’’ 5

As enacted in 2010, moreover, the 

data access provisions stated that before 

such data is shared, ‘‘each entity shall 

agree to indemnify the security-based 

swap data repository and the 

Commission for any expenses arising 

from litigation relating to the 

information provided under section 

24.’’ 6 Congress repealed the 

indemnification requirement in 

December 2015.7

B. Proposed Rule Amendments 

In 2015, prior to the legislative 

revision of the data access provisions, 

the Commission proposed rule 

amendments to implement the data 

access provisions.8 This proposal built 

upon two earlier Commission 

proposals,9 and specifically set forth 

proposed amendments to Exchange Act 

rule 13n–4—which the Commission 

previously adopted as part of a series of 

rules governing the registration process, 

duties and core principles applicable to 

security-based swap data repositories.10

Key elements of the proposal were: 

• Designation of entities eligible to 

access data. The proposal: (i) 

Specifically identified each of the five 

applicable prudential regulators as 

being eligible to access data under these 


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