10154 Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Notices 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 89062 

(June 12, 2020), 85 FR 36907. Comments received 

on the proposed rule change are available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-cboe-2020-050/srcboe2020050.htm. 

4 In Amendment No. 1, the Exchange: (1) Limited 

the scope of its original proposal, which would 

have permitted orders for the accounts of market 

makers with an appointment in any class to be 

solicited for the initiating order in an AIM or FLEX 

AIM auction in that class, to only allow market 

makers with an appointment in SPX to be solicited 

for the initiating order in an AIM or FLEX AIM 

auction in SPX; and (2) provided additional data, 

justification, and support for its modified proposal. 

The full text of Amendment No. 1 is available on 

the Commission’s website at: https://www.sec.gov/ 

comments/sr-cboe-2020-050/srcboe2020050- 

7382058-218888.pdf. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICE Clear Europe does not believe the 

proposed amendments would have any 

impact, or impose any burden, on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The amendments 

are being adopted to update and clarify 

the Price Submission Disciplinary 

Procedure and would apply equally to 

all CDS Clearing Members. As a result, 

ICE Clear Europe does not expect that 

the proposed changes will adversely 

affect access to clearing or the ability of 

Clearing Members, their customers or 

other market participants to continue to 

clear contracts. ICE Clear Europe also 

does not believe the amendments would 

materially affect the cost of clearing or 

otherwise impact competition among 

Clearing Members or other market 

participants or limit market 

participants’ choices for selecting 

clearing services. Accordingly, ICE Clear 

Europe does not believe the 

amendments would impose any burden 

on competition not necessary or 

appropriate in furtherance of the 

purpose of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed amendments have not been 

solicited or received by ICE Clear 

Europe. ICE Clear Europe will notify the 

Commission of any written comments 

received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, security-based swap submission 

or advance notice 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 rule-comments@

sec.gov. Please include File Number SR– 

ICEEU–2021–002 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–ICEEU–2021–002. 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 website (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 website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Europe and on ICE 

Clear Europe’s website at https://

www.theice.com/notices/ 

Notices.shtml?regulatoryFilings. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. All submissions should refer 

to File Number SR–ICEEU–2021–002 

and should be submitted on or before 

March 11, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03217 Filed 2–17–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91116; File No. SR–CBOE– 

2020–050] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Order Approving a 

Proposed Rule Change, as Modified by 

Amendment Nos. 1 and 2, To Amend 

Rules 5.37 and 5.73 Related to the 

Solicitation of Market Makers for SPX 

Initiating Orders in the Automated 

Improvement Mechanism and FLEX 

Automated Improvement Mechanism 

February 11, 2021. 

I. Introduction 

On June 3, 2020, Cboe Exchange, Inc. 

(‘‘Exchange’’ or ‘‘Cboe’’) 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 to 

permit orders for the accounts of market 

makers with an appointment in S&P 

500® Index Options (‘‘SPX’’) to be 

solicited for the initiating order 

submitted for execution against an 

agency order into an Automated 

Improvement Mechanism (‘‘AIM’’) 

auction or a FLEX AIM auction. The 

proposed rule change was published for 

comment in the Federal Register on 

June 18, 2020.3 On July 2, 2020, the 

Exchange submitted Amendment No. 1 

to the proposed rule change, which 

replaced and superseded the proposed 

rule change in its entirety.4 On July 22, 

2020, the Exchange submitted 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Notices 10155 

5 In Amendment No. 2, the Exchange: (1) 

Provided additional data, justification, and support 

for its proposal; and (2) made technical corrections 

and clarifications to the description of the proposal. 

The full text of Amendment No. 2 is available on 

the Commission’s website at: https://www.sec.gov/ 

comments/sr-cboe-2020-050/srcboe2020050- 

7464399-221161.pdf. 

6 15 U.S.C. 78s(b)(2). 

7See Securities Exchange Act Release No. 89398, 

85 FR 46197 (July 31, 2020). The Commission 

designated September 16, 2020 as the date by which 

the Commission shall approve or disapprove, or 

institute proceedings to determine whether to 

disapprove, the proposed rule change. 

8 15 U.S.C. 78s(b)(2)(B). 

9See Securities Exchange Act Release No. 89635, 

85 FR 53051 (August 27, 2020). 

10 15 U.S.C. 78s(b)(2). 

11See Securities Exchange Act Release No. 90593, 

85 FR 80842 (December 14, 2020). The Commission 

designated February 13, 2021 as the date by which 

the Commission shall approve or disapprove the 

proposed rule change, as modified by Amendment 

Nos. 1 and 2. 

12The initiating order is the order comprised of 

principal interest or a solicited order(s) submitted 

to trade against the order the submitting trading 

permit holder (the ‘‘Initiating TPH’’ or ‘‘Initiating 

FLEX Trader,’’ as applicable) represents as agent 

(the agency order). The Exchange states that AIM 

is currently not activated for SPX options, although 

FLEX AIM is currently activated for FLEX SPX 

options. See Amendment No. 1, supra note 4, at 4 

& n.2. 

13See Rules 5.86 and 5.87. See also Amendment 

No. 1, supra note 4, at 4. 

14See Amendment No. 1, supra note 4, at 4. 

15See id. at 4–5. See also Rule 5.24(e)(1)(A); 

Securities Exchange Act Release No. 88886 (May 

15, 2020), 85 FR 31008 (May 21, 2020) (SR–CBOE– 

2020–047). 

16See Securities Exchange Act Release No. 89058 

(June 12, 2020), 85 FR 36918 (June 18, 2020) (SR– 

CBOE–2020–051). 

17See Amendment No. 1, supra note 4, at 5–6. 

18See Amendment No. 2, supra note 5, at 4. 

19See Amendment No. 1, supra note 4, at 7. 

20See id. 

21See id. 

22See Amendment No. 2, supra note 5, at 3. 

23See Amendment No. 1, supra note 4, at 7. 

24See id. 

25See id. 

Amendment No. 2 to the proposed rule 

change.5 On July 27, 2020, pursuant to 

Section 19(b)(2) of the Act,6 the 

Commission designated a longer period 

within which to approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to disapprove the 

proposed rule change.7 On August 21, 

2020, the Commission published notice 

of Amendment Nos. 1 and 2 and 

instituted proceedings under Section 

19(b)(2)(B) of the Act 8 to determine 

whether to approve or disapprove the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2.9 On 

December 8, 2020, pursuant to Section 

19(b)(2) of the Act,10 the Commission 

designated a longer period within which 

to approve or disapprove the proposed 

rule change, as modified by Amendment 

Nos. 1 and 2.11 This order approves the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2. 

II. Description of the Proposal, as 

Modified by Amendment Nos. 1 and 2 

The Exchange proposes to permit 

orders for the accounts of market makers 

with an appointment in SPX to be 

solicited for the initiating order 

submitted for execution against an 

agency order in SPX options into a 

simple AIM auction pursuant to Rule 

5.37 or a simple FLEX AIM auction 

pursuant to Rule 5.73.12 Currently, the 

introductory paragraphs of Rules 5.37 

and 5.73 prohibit orders for the 

accounts of market makers with an 

appointment in the applicable class to 

be solicited to execute against the 

agency order in a simple AIM or FLEX 

AIM auction, respectively. The 

Exchange states that no similar 

restriction applies to crossing 

transactions in open outcry trading, 

where a significant portion of SPX 

options trade.13 The Exchange 

represents that brokers seeking liquidity 

to execute against customer orders on 

the trading floor regularly solicit 

appointed SPX market makers for this 

liquidity, as they are generally the 

primary source of pricing and liquidity 

for those options.14

The Exchange states that, during a 

period of time in which it suspended 

open outcry trading to help prevent the 

spread of the novel coronavirus and 

began operating in an all-electronic 

configuration, it activated AIM for SPX 

options and adopted a temporary rule 

change to permit market makers to be 

solicited for electronic crossing 

transactions in its exclusively-listed 

index options (including SPX options) 

when the Exchange’s trading floor was 

inoperable.15 According to the 

Exchange, while AIM was activated for 

SPX options, the Exchange observed 

price improvement benefits in AIM 

auctions for smaller, retail-sized SPX 

options.16 Although the Exchange has 

deactivated AIM for SPX options with 

the reopening of its trading floor, the 

Exchange further states that, if it 

determines to reactivate AIM for SPX 

options, it believes it is appropriate to 

permit orders for the account of an 

appointed SPX market maker to be 

submitted as the contra order, as the 

Exchange believes the liquidity 

provided by SPX market makers is 

necessary for brokers to initiate AIM 

auctions and create potential price 

improvement opportunities for those 

retail-sized orders.17 The Exchange also 

states that with additional market 

participants available for solicitation to 

represent the initiating order, the 

increased competition may encourage 

these participants to provide more 

aggressive prices to initiate an auction 

in SPX.18

The Exchange further states that, in 

multi-list classes, many market makers 

serve as both appointed market makers 

on the Exchange and as market makers 

on other options exchanges and, as a 

result, can use their away market maker 

accounts to be solicited as a contra order 

for AIM auctions.19 The Exchange 

provides data from April 2020 

demonstrating that approximately 

99.6% of the orders submitted into all 

AIM auctions had initiating orders 

comprised of orders for accounts of 

away market makers, making up 

approximately 86.2% of the volume 

executed through AIM auctions.20

According to the Exchange, however, 

because SPX is an exclusively-listed 

class on the Exchange, a firm cannot 

serve as an SPX market maker at another 

options exchange.21 The Exchange 

represents that there are currently 28 

trading permit holders with SPX 

appointments that would be available to 

participate in AIM auctions through 

both contra orders and auction 

responses.22 The Exchange provides 

data showing that during April and May 

2020, when initiating orders could be 

comprised of orders for accounts of SPX 

market makers pursuant to a temporary 

rule, approximately 22% of initiating 

orders executed in SPX AIM auctions 

were comprised of orders for SPX 

market makers, representing 

approximately 45% of SPX volume 

executed in AIM auctions.23 The 

Exchange’s data further demonstrates 

that during April and May 2020, while 

approximately 76% of initiating orders 

executed in SPX AIM auctions were 

comprised of orders for accounts of 

away market makers, those orders 

represented only approximately 5% of 

the SPX volume executed through AIM 

auctions.24 The Exchange’s data also 

shows that during April and May 2020, 

SPX market makers executed 

approximately 31% of SPX volume 

executed through AIM auctions with 

auction responses.25

The Exchange also states that SPX 

market makers frequently serve as 

contra parties to crossing transactions 

on the trading floor and the proposed 

rule change will further align AIM 

auctions with SPX crossing executions 

that occur on the trading floor. 

According to the Exchange, for example, 

during February 2020, approximately 

76% of SPX orders crossed on the 

trading floor (consisting of 2,944,161 

contracts) included an order of an SPX 


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26See id. at 8. 

27See id. at 9. 

28See Rule 1.1 (defining EFID as an ‘‘Executing 

Firm ID’’). The Exchange states that, although the 

system is only able to reject responses with the 

same EFID as the initiating order, the rule prohibits 

all responses from the same user that represents the 

initiating order, even if orders for the same user 

have different EFIDs. See Amendment No. 1, supra 

note 4, at 10. 

29See Amendment No. 1, supra note 4, at 10. 

30See Amendment No. 2, supra note 5, at 5. See 

also Rules 5.37.02 and 8.10. 

31 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). 

32 15 U.S.C. 78f(b)(5). 

33 15 U.S.C. 78f(b)(8). 

34See letters to Vanessa Countryman, Secretary, 

Commission, from Richard J. McDonald, 

Susquehanna International Group, LLP, dated July 

8, 2020, at 2 (‘‘SIG Letter’’) and Ellen Greene, 

Managing Director, Equities & Options Market 

Structure, The Securities Industry and Financial 

Markets Association, dated July 9, 2020, at 3 

(‘‘SIFMA Letter’’). The SIG Letter and SIFMA Letter 

commented on Cboe’s original proposal, which 

would have applied the proposed rule change to all 

classes, not just SPX. 

35See SIG Letter, supra note 34, at 1. 

36See SIFMA Letter, supra note 34, at 3; SIG 

Letter, supra note 34, at 2. 

37See supra notes 23–25 and accompanying text. 

38See Amendment No. 1, supra note 4, at 8. 

market maker on one side of the 

transaction.26

With respect to FLEX AIM, the 

Exchange states that, unlike in simple 

non-FLEX markets, FLEX market makers 

have no obligations to provide liquidity 

to FLEX classes and there is no book 

into which FLEX market makers may 

submit quotes to rest. According to the 

Exchange, therefore, appointed market 

makers in FLEX markets are on equal 

footing with all other market 

participants with respect to FLEX AIM 

auctions and permitting FLEX market 

makers to be solicited as the contra 

order in a FLEX AIM auction would 

provide all market participants with the 

opportunity to provide liquidity to 

execute against agency orders in FLEX 

AIM auctions in the same manner (i.e., 

through solicitation and responses).27

The Exchange also proposes to amend 

Rules 5.37(c)(5) and 5.73(c)(5) to codify 

that any user or FLEX Trader, 

respectively, other than the Initiating 

TPH or FLEX Trader, respectively, may 

submit responses to AIM and FLEX AIM 

auctions. The Exchange also proposes to 

specify that the system will reject a 

response with the same EFID as the 

initiating order.28 The Exchange 

represents that if the same user submits 

a response to an auction in which that 

same user had an order comprising the 

initiating order (even with a different 

EFID), the Exchange may take regulatory 

action against that user for a violation of 

the proposed rule.29 Further, with 

respect to any potential misuse of nonpublic information by an SPX market 

maker regarding an upcoming SPX AIM 

auction, the Exchange represents that it 

has existing rules that prohibit a pattern 

or practice of submitting orders or 

quotes for the purpose of disrupting or 

manipulating AIM auctions and that 

require trading permit holders to 

establish, maintain, and enforce written 

policies and procedures reasonably 

designed to prevent the misuse of 

material, non-public information.30

III. Discussion and Commission 

Findings 

The Commission finds that the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2, is consistent 

with the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.31 In particular, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

Nos. 1 and 2, is consistent with Section 

6(b)(5) of the Act,32 which requires, 

among other things, that the rules of a 

national securities exchange 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 also finds that the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2, is consistent 

with Section 6(b)(8) of the Act,33 which 

requires that the rules of a national 

securities exchange do not impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

As described above, the Exchange 

proposes to permit orders for the 

accounts of market makers with an 

appointment in SPX to be solicited for 

the initiating order submitted for 

execution against an agency order in 

SPX options into an AIM auctions. In 

support of its proposal, the Exchange 

states that brokers seeking liquidity to 

execute against customer orders on the 

trading floor regularly solicit appointed 

SPX market makers for this liquidity, as 

they are generally the primary source of 

pricing and liquidity for those options. 

Accordingly, the Exchange believes the 

liquidity provided by SPX market 

makers is necessary for brokers to 

initiate AIM auctions and would create 

potential price improvement 

opportunities for retail-sized orders in 

SPX. As summarized in more detail 

above, the Exchange collected data 

during the time open outcry trading was 

temporarily suspended and SPX options 

traded in AIM auctions while the 

trading floor was inoperable. The data 

demonstrates that significant price 

improvement opportunities for retailsized orders occurred during this time. 

Two commenters agreed with Cboe 

that the proposal would increase 

liquidity for AIM auctions and thereby 

would increase execution and price 

improvement opportunities for retail 

investors.34 One such commenter 

argued that removing the market maker 

solicitation prohibition would eliminate 

an inequity against market makers that 

unduly curtails liquidity to customer 

orders.35 Commenters also supported 

the proposal because it would better 

align the execution and price 

improvement opportunities in 

electronic crossing auctions with those 

available in open outcry trading, where 

no similar solicitation prohibition 

exists.36

After careful consideration, the 

Commission believes that the proposal 

is reasonably designed to protect 

investors and the public interest. The 

data provided by the Exchange supports 

the Exchange’s conclusion that the 

proposal could provide additional 

execution and price improvement 

opportunities for customer orders in 

SPX options submitted through the 

Exchange’s AIM auctions. As described 

above, the Exchange provided data 

demonstrating market maker 

participation in SPX AIM auctions 

during April and May 2020, the 

temporary period when SPX market 

makers were permitted to be solicited as 

contra side to the agency order in AIM 

auctions.37 The Commission believes 

that the Exchange’s data shows that SPX 

market makers represented a significant 

amount of SPX AIM volume during this 

period, both as initiating orders and 

through auction responses. Accordingly, 

the Exchange’s data supports a finding 

that permanently permitting initiating 

orders from SPX market makers is 

designed to increase the number of AIM 

auctions and consequently, provide a 

larger number of agency orders with the 

opportunity for price improvement. For 

example, an AIM agency order for less 

than 50 contracts is guaranteed price 

improvement of at least one minimum 

increment better than the then-current 

National Best Bid or National Best 

Offer.38

The Commission further believes that 

the proposed rule change will not 

impose any burden on competition that 

is not necessary or appropriate in 


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Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Notices 10157 

39See Amendment No. 1, supra note 4, at 8. 

40See id. 

41See Rules 5.37(c)(5) (AIM) and 5.38(c)(5). 

42See text accompanying supra note 22. 

43See Amendment No. 2, supra note 5, at 3. 

44See Amendment No. 1, supra note 4, at 7. 

45 15 U.S.C. 78s(b)(2). 

46 17 CFR 200.30–3(a)(12). 

1The verified notice states that SMART owns the 

segment of the Line between Healdsburg and 

Lombard, subject to an easement for freight rail 

service over the segment, and that, through this 

verified notice, SMART will acquire the freight rail 

easement. See Sonoma-Marin Area Rail Transit 

Dist.—Acquis. Exemption—Nw. Pac. R.R. Auth., FD 

34400 (STB served Mar. 10, 2004). 

furtherance of the purposes of the Act. 

SPX market makers frequently serve as 

contra parties to crossing transactions 

on the trading floor. For example, 

during February 2020 (when the trading 

floor was open), approximately 76% of 

SPX orders crossed on the trading floor 

(consisting of 2,944,161 contracts) 

included an order of an SPX market 

maker one side of the transaction.39

Cboe states that this demonstrates the 

importance of appointed SPX market 

makers to the provision of liquidity in 

the SPX market with respect to crossing 

transactions, which liquidity would not 

be available to initiate electronic 

crossing transactions under the current 

AIM rule.40 Thus, the proposed rule 

change will further align open outcry 

and electronic crossing auctions in SPX 

and provide execution and price 

improvement opportunities in both 

auctions by permitting all market 

participants, not just Cboe SPX market 

makers, to be solicited to participate in 

AIM transactions. 

Moreover, because the Exchange’s 

rules no longer restrict the group of 

participants that may provide responses 

to AIM auctions,41 there are a number 

of appointed SPX market makers on the 

Exchange that would remain eligible to 

provide competitive responses to AIM 

auctions.42 According to the Exchange, 

there are currently 28 trading permit 

holders with SPX appointments that 

would be available to participate in AIM 

auctions through both contra orders and 

auction responses.43 Further, the 

proposal would allow for an increased 

number of participants to provide the 

contra-side interest necessary to initiate 

a competitive AIM auction, particularly 

in an exclusively-listed class such as 

SPX where away market makers are 

unavailable to provide such interest. 

The Exchange’s data demonstrated that 

during the temporary period, SPX 

market makers executed approximately 

31% of SPX volume executed through 

AIM auctions with auction responses.44

Accordingly, the Commission finds 

that the proposed rule change, as 

modified by Amendment Nos. 1 and 2, 

is consistent with the requirements of 

the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,45 that the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2 (SR–CBOE– 

2020–050), be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.46

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03219 Filed 2–17–21; 8:45 am] 

BILLING CODE 8011–01–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. FD 36481] 

Sonoma-Marin Area Rail Transit 

District—Acquisition and Operation 

Exemption—North Coast Railroad 

Authority 

Sonoma-Marin Area Rail Transit 

District (SMART), a Class III rail carrier, 

has filed a verified notice of exemption 

under 49 CFR 1150.41 to acquire from 

North Coast Railroad Authority (NCRA) 

and operate approximately 87.65 miles 

of rail line (the Line), consisting of: (1) 

The line of railroad and right-of-way in 

fee between the Sonoma-Mendocino 

County, Cal., border at NWP milepost 89 

and Healdsburg, Cal., at NWP milepost 

68.2; and (2) the freight rail operating 

easement between Healdsburg, at NWP 

milepost 68.2 and Lombard, Cal., at SP 

milepost 63.4.1

The verified notice states that SMART 

and NCRA have executed an agreement 

pursuant to which SMART will acquire 

the Line from NCRA, and that SMART 

will become the freight operator of the 

Line, using a noncarrier contract 

operator. 

SMART certifies that its projected 

annual revenues as a result of this 

transaction will not exceed $5 million 

or the threshold required to qualify as 

a Class III carrier. SMART also certifies 

that the proposed acquisition and 

operation of the Line does not involve 

a provision or agreement that may limit 

future interchange with a third-party 

connecting carrier. 

The transaction may be consummated 

on or after March 4, 2021, the effective 

date of the exemption (30 days after the 

verified notice was filed). 

If the notice contains false or 

misleading information, the exemption 

is void ab initio. Petitions to revoke the 

exemption under 49 U.S.C. 10502(d) 

may be filed at any time. The filing of 

a petition to revoke will not 

automatically stay the transaction. 

Petitions for stay must be filed no later 

than February 25, 2021 (at least seven 

days before the exemption becomes 

effective). 

All pleadings, referring to Docket No. 

FD 36481, should be filed with the 

Surface Transportation Board via efiling on the Board’s website. In 

addition, a copy of each pleading must 

be served on SMART’s representative, 

Kevin M. Sheys, Hogan Lovells US LLP, 

Columbia Square, 555 Thirteenth St. 

NW, Washington, DC 20004. 

According to SMART, this action is 

categorically excluded from 

environmental review under 49 CFR 

1105.6(c) and from historic preservation 

reporting requirements under 49 CFR 

1105.8(b). 

Board decisions and notices are 

available at www.stb.gov. 

Decided: February 12, 2021. 

By the Board, Allison C. Davis, Director, 

Office of Proceedings. 

Jeffrey Herzig, 

Clearance Clerk. 

[FR Doc. 2021–03377 Filed 2–17–21; 8:45 am] 

BILLING CODE 4915–01–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

FEDERAL RESERVE SYSTEM 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

Agency Information Collection 

Activities; Submission for OMB 

Review; Comment Request 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Joint notice and request for 

comment. 

SUMMARY: In accordance with the 

requirements of the Paperwork 

Reduction Act of 1995 (PRA), the OCC, 

the Board, and the FDIC (the agencies) 

may not conduct or sponsor, and the 

respondent is not required to respond 

to, an information collection unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. On November 30, 2020, the 

agencies, under the auspices of the 

Federal Financial Institutions 

Examination Council (FFIEC), requested 

public comment for 60 days on a 

proposal to revise and extend the 


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