Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90205 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission approved proposals by several 

exchanges to list and trade shares of trusts that hold 

Ether, including the Trust. See Securities Exchange 

Act Release No. 100224 (May 23, 2024), 89 FR 

46937 (May 30, 2024). 

4See Securities Exchange Act Release No. 100661 

(Aug. 6, 2024), 89 FR 65690 (‘‘Notice’’). 

5 15 U.S.C. 78s(b)(2). 

6See Securities Exchange Act Release No. 

1001154 (Sept. 24, 2024) 89 FR 79664 (designating 

November 10, 2024, as the date by which the 

Commission shall either approve, disapprove, or 

institute proceedings to determine whether to 

disapprove the proposed rule change). 

7 15 U.S.C. 78s(b)(2)(B). 

8See supra note 4. 

9See Notice, 89 FR at 65691. The Exchange states 

that the Trust is not an investment company 

registered under the Investment Company Act of 

1940, as amended. See id. 

10See id. 

11See id. 

12See id. 

13See id. 

14See id. at 65691–2 and ISE Options 4, Section 

3(h)(iv). 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

BOX–2024–26 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–BOX–2024–26. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–BOX–2024–26 and should be 

submitted on or before December 5, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26407 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101571; File No. SR–ISE– 

2024–35] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change To List and Trade 

Options on the iShares Ethereum Trust 

November 8, 2024. 

I. Introduction 

On July 22, 2024, Nasdaq ISE, LLC 

(‘‘ISE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to allow the listing and trading 

of options on iShares Ethereum Trust 

(‘‘Trust’’).3 The proposed rule change 

was published for comment in the 

Federal Register on August 12, 2024.4

The Commission has received no 

comments regarding the proposal. 

On September 30, 2024, pursuant to 

Section 19(b)(2) of the Exchange Act,5

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.6

This order institutes proceedings under 

Section 19(b)(2)(B) of the Act 7 to 

determine whether to approve or 

disapprove the proposed rule change. 

II. Description of the Proposed Rule 

Change 

As described more fully in the 

Notice,8 the Exchange proposes to 

amend Options 4, Section 3(h)(iv), to 

add the Trust to the list of ExchangeTraded Fund Shares (‘‘Exchange-Traded 

Funds Shares’’ or ‘‘ETFs’’) that are 

appropriate for options trading.9 The 

Exchange states that the investment 

objective of the Trust is to reflect 

generally the performance of the price of 

ether before payment of the Trust’s 

expenses and liabilities. The Exchange 

states that shares of the Trust are 

intended to constitute a simple means of 

making an investment similar to an 

investment in ether through the public 

securities market rather than by 

acquiring, holding, and trading ether 

directly on a peer-to-peer or other basis 

or via a digital asset platform.10 The 

Exchange further states that shares of 

the Trust have been designed to remove 

the obstacles represented by the 

complexities and operational burdens 

involved in a direct investment in ether, 

while at the same time having an 

intrinsic value that reflects, at any given 

time, the investment exposure to the 

ether owned by the Trust at such time, 

less the Trust’s expenses and 

liabilities.11 The Exchange states that 

although shares in the Trust are not the 

exact equivalent of a direct investment 

in ether, they provide investors with an 

alternative method of achieving 

investment exposure to ether through 

the public securities market, which may 

be more familiar to them.12 The 

Exchange states that offering options on 

the Trust will benefit investors by 

providing them with an additional, 

relatively lower cost investing tool to 

gain exposure to spot ether as well as a 

hedging vehicle to meet their 

investment needs in connection with 

ether products and positions.13 In 

addition, the Exchange states that, 

similar to other commodity ETFs in 

which options may be listed on ISE (e.g. 

SPDR® Gold Trust, the iShares COMEX 

Gold Trust, the iShares Silver Trust, or 

the ETFS Gold Trust), the proposed ETF 

is a trust that essentially offers the same 

objectives and benefits to investors.14

The Exchange states that options on 

the Trust will trade in the same manner 

as options on other ETFs on the 

Exchange, and that Exchange rules that 

currently apply to the listing and 

trading of all options on ETFs on the 

Exchange, including, for example, rules 

that govern listing criteria, expirations, 

exercise prices, minimum increments, 

position and exercise limits, margin 

requirements, customer accounts and 

trading halt procedures, will apply to 

the listing and trading of options on the 


ddrumheller on DSK120RN23PROD with NOTICES1
90206 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

15See Notice at 65692. 

16See id. 

17See id. 

18See id. 

19Specifically, the Trust must meet either: (1) the 

criteria and guidelines for underlying securities set 

forth in Options 4, Section 3(h), or (2) it must be 

available for creation or redemption each business 

day from or through the issuing trust, investment 

company, commodity pool or other entity in cash 

or in kind at a price related to net asset value, and 

the issuer is obligated to issue Exchange-Traded 

Fund Shares in a specified aggregate number even 

if some or all of the investment assets and/or cash 

required to be deposited have not been received by 

the issuer, subject to the condition that the person 

obligated to deposit the investment assets has 

undertaken to deliver them as soon as possible and 

such undertaking is secured by the delivery and 

maintenance of collateral consisting of cash or cash 

equivalents satisfactory to the issuer of the 

Exchange-Traded Fund Shares, all as described in 

the Exchange-Traded Fund Shares’ prospectus, or 

the Exchange-Traded Fund Shares must be based on 

international or global indexes, or portfolios that 

include non-U.S. securities, and meet other criteria 

See id. 

20See Notice at 65692. 

21See id. 

22See id. 

23See id. 

24See id. at 65692–3. 

25See id. at 65693. 

26See id. 

27See id. 

28See id. 

29See id. 

30See id. 

31See id. 

32See id. 

33See id. 

34 15 U.S.C. 78f(b). 

35 15 U.S.C. 78f(b)(5). 

36See Notice, 89 FR at 65693. 

Trust.15 The Exchange states that these 

rules apply to options on the various 

commodities ETFs deemed appropriate 

for options trading on the Exchange 

pursuant to Options 4, Section 

3(h)(iv).16 In addition, the Exchange 

states that its initial listing standards for 

ETFs on which options may be listed 

and traded on the Exchange will apply 

to the Trust.17 The Exchange states that 

the initial listing standard set forth in 

Options 4, Section 3(a) provides that an 

underlying security must meet the 

following criteria: (1) the security must 

be registered and be an ‘‘NMS stock’’ as 

defined in Rule 600 of Regulation NMS 

under the Exchange Act; and (2) the 

security must be characterized by a 

substantial number of outstanding 

shares that are widely held and actively 

traded.18 The Exchange further states 

that, pursuant to ISE Options 4, Section 

3, ETFs on which options may be listed 

and traded must satisfy the listing 

standards set forth in Options 4, Section 

3(h).19

The Exchange states that options on 

the Trust will also be subject to the 

Exchange’s continued listing standards 

for options on in Options 4, Section 

4(g).20 The Exchange states that options 

approved for trading pursuant to 

Options 4, Section 3(h) will not be 

deemed to meet the requirements for 

continued approval, and the Exchange 

shall not open for trading any additional 

series of option contracts of the class 

covering such ETFs, if the ETFs are 

delisted from trading as provided 

Options 4, Section 4(b)(5), or the ETFs 

are halted or suspended from trading on 

their primary market.21 In addition, the 

Exchange states that it will consider the 

suspension of opening transactions in 

any series of options of the class 

covering ETFs in any of the following 

circumstances: 

(1) in the case of options covering 

Exchange-Traded Fund Shares approved 

pursuant to Options 4, Section 

3(h)(A)(i), in accordance with the terms 

of subparagraphs (b)(1), (2), (3) and (4) 

of Options 4, Section 4; 

(2) in the case of options covering 

Fund Shares approved pursuant to 

Options 4, Section 3(h)(A)(ii), following 

the initial twelve-month period 

beginning upon the commencement of 

trading, there were fewer than 50 record 

and/or beneficial holders of such 

Exchange-Traded Fund Shares for 30 or 

more consecutive trading days; 

(3) the value of the index or portfolio 

of securities or non-U.S. currency, 

portfolio of commodities including 

commodity futures contracts, options on 

commodity futures contracts, swaps, 

forward contracts, options on physical 

commodities and/or Financial 

Instruments and Money Market 

Instruments on which the ExchangeTraded Fund Shares are based is no 

longer calculated or available; or 

(4) such other event occurs or 

condition exists that in the opinion of 

the Exchange makes further dealing in 

such options on the Exchange 

inadvisable.22

The Exchange states that options on 

the Trust will be physically settled 

contracts with American-style 

exercise.23 As described more fully in 

the Notice, the Exchange’s rules 

governing the opening of options series 

and the strike prices for ETF options 

will apply to the proposed Trust 

options.24

The Exchange states that position and 

exercise limits for options on ETFs, 

including options on the Trust, will be 

determined pursuant to Options 9, 

Sections 13 and 15, respectively.25

Position and exercise limits for ETF 

options vary according to the number of 

outstanding shares and the trading 

volumes of the underlying ETF over the 

past six months, where the largest in 

capitalization and the most frequently 

traded ETFs have an option position 

and exercise limit of 250,000 contracts 

(with adjustments for splits, recapitalizations, etc.) on the same side of 

the market; and smaller capitalization 

ETFs have position and exercise limits 

of 200,000, 75,000, 50,000 or 25,000 

contracts (with adjustments for splits, 

re-capitalizations, etc.) on the same side 

of the market.26 The Exchange states 

that margin requirements in Options 6C, 

Section 3 will apply to the trading of the 

Trust options.27

The Exchange represents that the 

same surveillance procedures applicable 

to other options on other ETFs currently 

listed and traded on the Exchange will 

apply to options on the Trust.28 In 

addition, the Exchange represents that it 

has the necessary systems capacity to 

support the new option series.29 The 

Exchange states that its existing 

surveillance and reporting safeguards 

are designed to deter and detect possible 

manipulative behavior which might 

potentially arise from listing and trading 

options on ETFs, including the 

proposed Trust options.30 The Exchange 

states that it would implement any new 

surveillance procedures it deemed 

necessary to effectively monitor the 

trading of options on the Trust. In 

addition, the Exchange states that it may 

obtain trading information via the 

Intermarket Surveillance Group (‘‘ISG’’) 

from other exchanges who are members 

or affiliates of the ISG.31

The Exchange states that it has 

analyzed its capacity and represents that 

it believes that the Exchange and the 

Options Price Reporting Authority have 

the necessary systems capacity to 

handle the additional traffic associated 

with the listing of new series that may 

result from the introduction of options 

on the Trust up to the number of 

expirations currently permissible under 

the Exchange’s rules.32 Because the 

proposal is limited to one class, the 

Exchange states that any additional 

traffic that may be generated from the 

introduction of the Trust options will be 

manageable.33

The Exchange states that the proposal 

is consistent with Section 6(b) of the 

Act, in general,34 and furthers the 

objectives of Section 6(b)(5) of the Act,35

in particular.36 The Exchange states that 

the proposal will remove impediments 

to and perfect the mechanism of a free 

and open market and a national market 

system and, in general, protect investors 

because offering options on the Trust 

will provide investors with a greater 

opportunity to realize the benefits of 

utilizing options on an ETF based on 

spot ether, including cost efficiencies 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90207 

37See id. 38See id. 39See id. 40See id. 41See id. at 65694. 42 15 U.S.C. 78s(b)(2)(B). 43 Id. 44 15 U.S.C. 78f(b)(5). 

45 17 CFR 201.700(b)(3). 

46See id. 

47See id. 

48Section 19(b)(2) of the Act, as amended by the 

Securities Acts Amendments of 1975, Public Law 

94–29 (June 4, 1975), grants the Commission 

flexibility to determine what type of proceeding— 

either oral or notice and opportunity for written 

comments—is appropriate for consideration of a 

particular proposal by a self-regulatory 

organization. See Securities Acts Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 

and increased hedging strategies.37 The 

Exchange states that offering options on 

a competitively priced ETF based on 

spot ether will benefit investors by 

providing them with an additional, 

relatively lower cost risk management 

tool allowing them to manage, more 

easily, their positions, and associated 

risks, in their portfolios in connection 

with exposure to spot ether.38 The 

Exchange states that it currently lists 

options on other commodity ETFs 

structured as a trust, which essentially 

offer the same objectives and benefits to 

investors, and for which the Exchange 

has not identified any issues with the 

continued listing and trading of options 

on those ETFs.39 In addition, the 

Exchange states that the proposed 

options on the Trust will comply with 

current Exchange rules, as described 

above.40 The Exchange states that the 

Commission has previously approved 

the listing and trading of options on 

other commodity ETFs structured as a 

trust, such as the SPDR® Gold Trust, the 

iShares COMEX Gold Trust, the iShares 

Silver Trust, the ETFS Gold Trust, and 

the ETFS Silver Trust.41

III. Proceedings To Determine Whether 

To Approve or Disapprove SR–ISE– 

2024–35 and Grounds for Disapproval 

Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act 42 to determine 

whether the proposed rule change 

should be approved or disapproved. 

Institution of such proceedings is 

appropriate at this time in view of the 

legal and policy issues raised by the 

proposed rule change. Institution of 

proceedings does not indicate that the 

Commission has reached any 

conclusions with respect to any of the 

issues involved. Rather, as described 

below, the Commission seeks and 

encourages interested persons to 

provide comments on the proposed rule 

change. 

Pursuant to Section 19(b)(2)(B) of the 

Act,43 the Commission is providing 

notice of the grounds for disapproval 

under consideration. The Commission is 

instituting proceedings to allow for 

additional analysis of the proposed rule 

change’s consistency with Section 

6(b)(5) of the Act,44 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 

protect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Under the Commission’s Rules of 

Practice, the ‘‘burden to demonstrate 

that a proposed rule change is 

consistent with the Exchange Act and 

the rules and regulations issued 

thereunder . . . is on the self-regulatory 

organization that proposed the rule 

change.’’ 45 The description of a 

proposed rule change, its purpose and 

operation, its effect, and a legal analysis 

of its consistency with applicable 

requirements must all be sufficiently 

detailed and specific to support an 

affirmative Commission finding,46 and 

any failure of a self-regulatory 

organization to provide this information 

may result in the Commission not 

having a sufficient basis to make an 

affirmative finding that a proposed rule 

change is consistent with the Act and 

the applicable rules and regulations.47

The Commission is instituting 

proceedings to allow for additional 

consideration and comment on the 

issues raised herein, including as to 

whether the proposal is consistent with 

the Act. In particular, the Commission 

asks commenters to address whether the 

proposal includes sufficient data and 

analysis to support a conclusion that the 

proposal is consistent with the 

requirements of Section 6(b)(5) of the 

Act. 

IV. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposal is consistent with Section 

6(b)(5) or any other provision of the Act, 

and the rules and regulations 

thereunder. Although there do not 

appear to be any issues relevant to 

approval or disapproval that would be 

facilitated by an oral presentation of 

views, data, and arguments, the 

Commission will consider, pursuant to 

Rule 19b–4, any request for an 

opportunity to make an oral 

presentation.48

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposed rule change should be 

approved or disapproved by December 

5, 2024. Any person who wishes to file 

a rebuttal to any other person’s 

submission must file that rebuttal by 

December 19, 2024. 

Comments may be submitted by any 

of the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

ISE–2024–35 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–ISE–2024–35. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 


ddrumheller on DSK120RN23PROD with NOTICES1
90208 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

49 17 CFR 200.30–3(a)(57). 

1Applicant originally filed the application on 

August 30, 2024, but it then filed a supplement on 

October 15, 2024. Therefore, for purposes of 

determining the procedural schedule and statutory 

deadlines, the filing date of the application is 

October 15, 2024. See 49 CFR 1182.4(a). 

2More information about the proposed corporate 

structure and ownership can be found in the 

application. (See Appl., Ex. 3.) 

3The application does not have page numbers. 

The page numbers cited in this decision refer to the 

PDF page numbers of the application. 

4Applicant indicates that FTS has two wholly 

owned subsidiaries, PEM Transportation, LLC, and 

Harmony Transit, LLC, which Applicant states are 

both intrastate passenger carriers not subject to the 

Board’s jurisdiction. (Appl. 4 n.1.) 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–ISE–2024–35 and should be 

submitted on or before December 5, 

2024. Rebuttal comments should be 

submitted by December 19, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.49

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26532 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Senior Executive Service and Senior 

Level: Performance Review Board 

Members 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of Appointees to the 

Performance Review Board. 

SUMMARY: Federal Law requires each 

agency to publish notification of the 

appointment of individuals who will 

serve as members of that agency’s 

Performance Review Board (PRB). The 

following individuals have been 

designated to serve on the PRB for the 

U.S. Small Business Administration. 

SUPPLEMENTARY INFORMATION: 

Members 

1. John Miller (Chair), Deputy Associate 

Administrator, Office of Capital 

Access 

2. Bruce Purdy, Jr, Associate 

Administrator for Small Business 

Development Centers, Office of 

Entrepreneurial Development 

3. George Holman, Associate 

Administrator, Office of 

Congressional and Legislative 

Affairs 

4. John Klein, Associate General 

Counsel for Procurement Law, 

Office of General Counsel 

5. Kimberly McLeod, Assistant 

Administrator, Office of Hearings 

and Appeals 

6. Melissa Atwood, Director of Financial 

Operations Management, Office of 

Performance, Planning, and the 

Chief Financial Officer 

7. Victor Parker, Deputy Associate 

Administrator, Office of Field 

Operations 

Authority: 5 U.S.C. 4314(c)(4). 

Isabella Casillas Guzman, 

Administrator. 

[FR Doc. 2024–26392 Filed 11–13–24; 8:45 am] 

BILLING CODE 8026–09–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. MCF 21123] 

Patrick O. Regan—Acquisition of 

Control—Faribault Transportation 

Service, Inc., Minnesota Coaches, Inc., 

Marschall Line, Inc., Rehbein Transit 

Co., Inc., Minn-Dakota Coaches, Inc., 

Voyageur Bus Company, Inc., and 

Ready Bus Company, Inc. 

AGENCY: Surface Transportation Board. 

ACTION: Notice Tentatively Approving 

and Authorizing Finance Transaction. 

SUMMARY: Patrick O. Regan (Applicant) 

filed an application seeking authority to 

acquire control of Faribault 

Transportation Service, Inc. (FTS), 

through a corporate reorganization in 

which Applicant would become the 

majority shareholder in MNC Holding 

Company, a new entity created to serve 

as a holding company for FTS and other 

motor carriers and noncarrier entities. 

Applicant also seeks after-the-fact 

authority for several alreadyconsummated transactions that 

ultimately resulted in Applicant’s 

acquisition of control of six passenger 

motor carriers: Minnesota Coaches, Inc., 

Marschall Line, Inc., Rehbein Transit 

Co., Inc., Minn-Dakota Coaches, Inc., 

Voyageur Bus Company, Inc., and Ready 

Bus Company, Inc. (collectively, 

Affiliated Carriers). The Board is 

tentatively approving and authorizing 

these transactions. If no opposing 

comments are timely filed, this notice 

will be the final Board action. 

DATES: Comments must be filed by 

December 30, 2024. If any comments are 

filed, Applicant may file a reply by 

January 13, 2025. If no opposing 

comments are filed by December 30, 

2024, this notice shall be effective on 

December 31, 2024. 

ADDRESSES: Comments, referring to 

Docket No. MCF 21123, may be filed 

with the Board either via e-filing on the 

Board’s website or in writing addressed 

to: Surface Transportation Board, 395 E 

Street SW, Washington, DC 20423–0001. 

In addition, send one copy of comments 

to Applicant’s representative: Edward 

Fishman, Hogan Lovells US LLP, 

Columbia Square, 555 Thirteenth Street 

NW, Washington, DC 20004. 

FOR FURTHER INFORMATION CONTACT: 

Brian O’Boyle at (202) 245–0364. If you 

require an accommodation under the 

Americans with Disabilities Act, please 

call (202) 245–0245. 

SUPPLEMENTARY INFORMATION: According 

to the application,1 Applicant, a 

noncarrier, seeks to acquire control of 

FTS, which is currently owned by 

Garrett O. Regan. Applicant 

characterizes his proposed acquisition 

as a ‘‘corporate reorganization,’’ that, if 

approved and consummated, would 

result in Applicant becoming the 

majority shareholder of MNC Holding 

Company, and Garrett O. Regan 

becoming a minority shareholder in 

MNC Holding Company, together with 

certain other minority shareholders.2

(Appl. 3.) 3

Applicant states that FTS has its 

principal place of business in Faribault, 

Minn., and provides student 

transportation service, including general 

and special education transportation, to 

and from school on a regular schedule, 

as well as school bus charter service for 

extracurricular activities and other 

special trips. (Id. at 4; Suppl. 1–2.) 

Applicant states that, on limited 

occasions, FTS’s school bus charter 

service involves trips from Minnesota 

into Wisconsin and other neighboring 

states (depending on the location of 

those activities involving the school bus 

customers served by FTS). (Suppl. 2.) 

FTS operates approximately 66 power 

units and employs approximately 88 

drivers. (Appl. 4.) 4

Applicant also seeks after-the-fact 

authorization for his acquisition of 

control of six motor carriers through six 

previously consummated transactions. 

Applicant states that, if approval is 

granted, each of these carriers would be 

brought under control of MNC Holding 

Company, with Applicant as the 

majority shareholder and other minority 

shareholders of the carriers becoming 

minority shareholders of MNC Holding 

Company. (Id. at 5.) Applicant describes 

the transactions for which he seeks 

after-the-fact authority as follows. 

Minnesota Coaches, Inc., Marschall 

Line, Inc., and Rehbein Transit Co., Inc. 


ddrumheller on DSK120RN23PROD with NOTICES1