Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices 51899 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Reference BBO shall mean the internal best 

bid and offer on Phlx. 

4This is accomplished by marking the Initiating 

Order with a market price. 

5Under no circumstances will the Initiating 

Member receive an allocation percentage, at the 

final price point, of more than 50% with one 

competing quote, order or PAN response or 40% 

with multiple competing quotes, orders or PAN 

responses when competing quotes, orders or PAN 

responses have contracts available for execution. 

All submissions should refer to File 

Number SR–MIAX–2017–45. 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. 

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–MIAX–2017–45 and should 

be submitted on or before November 29, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24252 Filed 11–7–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81999; File No. SR–Phlx– 

2017–85] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Price 

Improvement XL Auction 

November 2, 2017. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on October 

26, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 1080(n) related to Phlx’s Price 

Improvement XL (‘‘PIXL’’) auction. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqphlx.cchwallstreet.com/ 

, at the principal office of the Exchange, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

PIXL rule at 1080(n) to: 1. Include a 

surrender provision; 2. update a 

reference to the NBBO to provide 

specificity to the rule; and 3. correct a 

typographical error, update a crossreference and relocate rule text. 

Surrender 

The Exchange proposes to adopt a 

surrender provision within Rule 1080(n) 

for its PIXL auction similar to the 

surrender provision that is applicable to 

Nasdaq BX, Inc.’s (‘‘BX’’) surrender 

provision in the BX price improvement 

auction (‘‘PRISM’’) at Chapter VI, 

Section 9. 

Current PIXL 

By way of background, today, only 

one PIXL Auction may be conducted at 

a time in any given series. Once 

commenced, an Auction may not be 

cancelled and would proceed as 

described herein. To initiate the 

Auction, the Initiating Member must 

mark the PIXL Order for Auction 

processing, and specify either: (a) A 

single price at which it seeks to execute 

the PIXL Order (a ‘‘stop price’’); (b) that 

it is willing to automatically match as 

principal or as agent on behalf of an 

Initiating Order the price and size of all 

PIXL Auction Notifications (‘‘PAN’’) 

responses, and trading interest (‘‘automatch’’) in which case the PIXL Order 

will be stopped at the better of the 

NBBO or the Reference BBO 3 on the 

Initiating Order side; 4 or (c) that it is 

willing to either: (i) Stop the entire 

order at a single stop price and automatch PAN responses and trading 

interest at a price or prices that improve 

the stop price to a specified price (a ‘‘No 

Worse Than’’ or ‘‘NWT’’ price); (ii) stop 

the entire order at a single stop price 

and auto-match all PAN responses and 

trading interest at or better than the stop 

price; or (iii) stop the entire order at the 

better of the NBBO or Reference BBO on 

the Initiating Order side, and automatch PAN responses and trading 

interest at a price or prices that improve 

the stop price up to the NWT price. In 

all cases, if the PBBO on the same side 

of the market as the PIXL Order 

represents a limit order on the book, the 

stop price must be at least one 

minimum price improvement increment 

better than the booked limit order’s 

limit price. Once the Initiating Member 

has submitted a PIXL Order for 

processing as described herein, such 

PIXL Order may not be modified or 

cancelled.5

Proposed PIXL Amendment 

At this time, the Exchange proposes to 

add a paragraph to Rule 

1080(n)(ii)(A)(1) stating that, when 

starting an Auction, the Initiating 

Member may submit the Initiating Order 

with a designation of ‘‘surrender’’ to 

other PIXL participants (‘‘Surrender’’), 

which will result in the Initiating 

Member forfeiting priority and trade 

allocation privileges which he or she is 

otherwise entitled to as per subsection 


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51900 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices 

6 Depending on the option selected, the Initiating 

Member may elect in the single stop option 

selection to give up the allocation priority, if 

Surrender is selected, or with the auto-match option 

the Initiating Member will only be allocated the 

remainder in accordance with the allocation 

percentages specified in Rule 1080(n)(ii)(E)(2)(b). 

The Surrender feature only applies to the single 

stop price feature. By definition the purpose of the 

auto-match feature is that the Initiating Member is 

going to match all responses and seek a greater 

allocation. This language is at odds with the 

Surrender feature where the Initiating Member is 

not seeking allocation. 

7See Chapter VI, Section 9(ii)(A)(i). 

8Today, BOX Options Exchange LLC (‘‘BOX’’) 

utilizes a Surrender feature in its Complex Order 

Price Improvement Period or ‘‘COPIP.’’ See also 

BOX Rule 7245. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

(n)(ii)(E)(a) of Rule 1080(n).6 If 

Surrender is specified the Initiating 

Order will only trade if there is not 

enough interest available to fully 

execute the PIXL Order at prices which 

are equal to or improve upon the stop 

price. Phlx will allow surrender only for 

the entire amount, not for a partial 

amount. Surrender will not be applied 

if both the Initiating Order and PIXL 

Order are Public Customer Orders. 

The Surrender function will never 

result in more than the maximum 

allowable allocation percentage to the 

Initiating Participant than that which 

the Initiating Member would have 

otherwise received in accordance with 

the allocation procedures set forth in 

this Rule. Surrender information will 

not be available to other market 

participants and may not be modified. 

The proposed provisions are similar to 

surrender provisions on BX PRISM.7

Similarly, the Exchange proposes to 

add a new paragraph at Rule 

1080(n)(ii)(A)(2) which provides a 

similar provision for Complex Orders.8

The proposed provision would provide 

that when starting a PIXL Complex 

Order Auction, the Initiating Member 

may submit the Initiating Order with a 

designation of Surrender to the other 

PIXL participants which will result in 

the Initiating Member forfeiting the 

priority and trade allocation privileges 

which he is otherwise entitled to as per 

subsection (n)(ii)(E)(2)(d) of Rule 

1080(n). If Surrender is specified the 

Initiating Order will only trade if there 

is not enough interest available to fully 

execute the PIXL Order at prices which 

are equal to or improve upon the stop 

price. Throughout the rule where 

allocation is specified a notation is 

added to account for any surrender, if 

applicable such as in 1080(n)(ii)(E)(2)(a) 

and (d). 

NBBO Reference 

The Exchange proposes to reword 

Rule 1080(n)(ii)(F) to add specificity to 

the current rule text. The Exchange 

proposes to state that ‘‘If there are PAN 

responses (except if it is a Complex 

Order) that cross the better of the 

Reference BBO and NBBO (provided 

such NBBO is not crossed) or Complex 

Order PAN responses that cross the 

then-existing cPBBO at the time of the 

conclusion of the Auction, such PAN 

responses will be executed, if possible, 

at their limit price(s).’’ In certain 

instances, a resting order or quote may 

be internally priced at a non-displayed 

price and would differ from the PBBO. 

The Internal BBO or ‘‘Reference BBO’’ 

would differ from the PBBO in a 

situation where the System prevents 

trade-throughs and locked and crossed 

markets. In these instances, interest will 

not be executed at a price that trades 

through another market or is displayed 

at a price that would lock or cross 

another market. If, at the time of entry, 

an order or quote would cause a locked 

or crossed market violation or would 

cause a trade-through violation, it will 

be re-priced to the current national best 

offer (for bids) or the current national 

best bid (for offers) and displayed at one 

minimum price variance above (for 

offers) or below (for bids) the national 

best price. For this reason, the Exchange 

is proposing more precise rule text at 

Rule 1080(n)(ii)(F) to account for these 

situations where there is an automatic 

repricing in order to prevent tradethroughs and locked and crossed 

markets. The Exchange proposes to 

change the rule text to acknowledge that 

repricing would result in the better of 

the NBBO (or PBBO) or the Reference 

BBO. 

Typographical Error, Clarifying Change, 

Cross Reference and Relocated Text 

The Exchange proposes to correct a 

word in Rule 1080(n)(i)(C) from ‘‘of’’ to 

‘‘or’’ to correct an unintentional 

typographical error. The Exchange also 

proposes to replace a reference to ‘‘Rule 

1080(n) at Commentary .07’’ to ‘‘Rule 

1098’’ to properly reference rule text 

related to Complex Orders at Rule 

1080(n)(ii)(E)(2)(f). A reference to 

‘‘remaining’’ shares as Rule 

1080(n)(ii)(E)(2)(f) is also proposed to be 

amended to ‘‘residual’’ simply to 

conform to the language utilized in 

other parts of the rule. Finally, rule text 

related to PIXL ISO in Commentary .08 

to Rule 1080(n) is being relocated 

within the rule to new 1080(n)(ii)(K) 

simply to add the text in an appropriate 

location within the rule. A space is also 

being added within the rule text that 

was inadvertently left out of a prior 

version. 

Implementation 

The Exchange proposes to implement 

this functionality before Q1 2018. 

Members will be notified of the 

deployment date by way of an Options 

Trader Alert. 

Below is an example of the manner in 

which the Surrender feature would 

operate: 

EXAMPLE (Related to Rule 

1080(n)(ii)(A)(i) (Initiating Participant 

utilizing Surrender): 

NBBO = .97¥1.03 

PHLX BBO = .95¥1.03(60) with Market 

Maker A and Market Maker B 

offering 30 contracts each PIXL 

Order to buy 100 contracts stopped 

at 1.02 marked as ‘Surrender’ is 

received, 

Auction begins, 

During auction, Market Maker C 

responds to sell 5 at 1.01, Market Maker 

A responds to sell 5 contracts at 1.02, 

Market Maker B responds to sell 40 

contracts at 1.02, and Market Maker D 

responds to sell 20 contracts at 1.02. 

During auction, Market Maker A 

moves his quote and PHLX BBO 

becomes .95¥1.02 for 5 contracts and 

NBBO becomes .97¥1.02. 

Auction ends, Market Maker C trades 

5 at 1.01; Remaining Market Maker 

interest trades 70 contracts in a Pro-Rata 

fashion: Market Maker A executes 10 

contracts with 5 being given to the 

Market Maker A response at 1.02 and 5 

to the Market Maker A quote at 1.02; 

Market Maker B response executes 40 

contracts at 1.02; Market Maker D 

response executes 20 contracts at 1.02. 

The PIXL Contra executes the remaining 

25 contracts at 1.02. This is because the 

initiator will end up trading if not 

enough interest is there to satisfy the 

stop price. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,10

in particular, in that it is designed 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, by 

proposing a functionality which allows 

members more optionality to transact 

orders in the PIXL auction. The 

Exchange believes that the proposed 

feature will provide members with more 

flexibility, similar to functionality 

currently offered on BX. In addition the 


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Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices 51901 

11Today, BX offers a surrender feature. See BX 

Rule at Chapter VI, Section 9. The Chicago Board 

Options Exchange, Incorporated (‘‘CBOE’’) has a 

process whereby initiating participants may elect to 

receive last priority in an allocation. See CBOE Rule 

6.74A(b)(3)(J), entitled Automated Improvement 

Mechanism (‘‘AIM’’). Finally, BOX utilizes a 

Surrender feature in its PIP and COPIP, similar to 

the proposed Phlx Surrender for simple and 

complex orders. The Exchange notes that BOX 

Initiators may forfeit less than the entire amount 

pursuant to the BOX rule. See BOX Rules 7150 and 

7245. Phlx will allow surrender only for the entire 

amount, not for a partial amount. 12 Id. 

Exchange proposes other amendments 

which add clarity to the rule text so that 

members will gain a greater 

understanding of the rule. Each 

proposal is discussed below. 

Surrender 

The Exchange believes that the 

Surrender feature is consistent with the 

Act because it promotes just and 

equitable principles of trade by allowing 

members who submit orders into the 

PIXL Auction to continue to be executed 

pursuant to a pre-determined set of 

rules which would allow members to 

forfeit priority and trade allocation 

privileges and only trade if there is not 

enough interest available to fully 

execute the PIXL Order at prices which 

are equal to or improve upon the stop 

price. Members are not required to elect 

this feature, but is would be available, 

as it is today on BX, if a member desired 

to utilize the Surrender feature. The 

new Surrender feature would provide 

the Initiator with flexibility, thereby 

increasing the likelihood that the 

Initiator would be inclined to 

commence more auctions. 

The feature would only permit the 

member to surrender the entire amount, 

not a partial amount. Also, Surrender 

will not be applied if both the Initiating 

Order and PIXL Order (or PIXL Complex 

Order) are Public Customer Orders. The 

Surrender feature will not permit a 

member to have any control over an 

order. Further, the election to Surrender 

an order would be available prior to the 

submission of the order and therefore 

could not be utilized to gain influence 

or guide the execution of the PIXL Order 

or PIXL Complex Order. Initiating 

Members submitting PIXL Orders or 

PIXL Complex Orders will relinquish 

control of their PIXL Orders or PIXL 

Complex Orders upon transmission to 

the Exchange’s System. Further, no 

Participant, including the Initiating 

Participant, will see a PAN response 

submitted into PIXL and therefore and 

will not be able to influence or guide the 

execution of their PIXL Orders or PIXL 

Complex Orders. The information 

provided with respect to the Surrender 

feature by the member will not be 

broadcast and further, the information 

may not be modified by the member 

during the auction. 

NBBO Reference 

The Exchange’s proposal to amend 

Rule 1080(n)(ii)(F) to amend the current 

rule text for the addition of language to 

include the ‘‘Reference BBO’’ to clarify 

where the price is equal to or better than 

the NBBO or PBBO and the Reference 

BBO (internal market BBO), due to 

repricing for trade-throughs or locked 

and crossed markets, adds clarity and 

precision to the current rule text. The 

Exchange believes that these proposed 

amendments are consistent with the Act 

and do not otherwise create an 

impediment to a free and open market 

because today investors are subject to 

this repricing. Also, by reflecting the 

proper rule text to account for these 

order types the Exchange is providing 

members with additional information 

with which to anticipate the manner in 

which the Exchange’s trading system 

reprices interest to prevent a tradethrough or locked and crossed market. 

Typographical Error, Clarifying Change, 

Cross Reference and Relocated Text 

The Exchange’s proposals to: (a) 

Correct a word in Rule 1080(n)(i)(C) 

from ‘‘of’’ to ‘‘or’’; (b) replace a reference 

to Rule 1080(n) at Commentary .07 to 

Rule 1098 to properly reference rule text 

related to Complex Orders at Rule 

1080(n)(ii)(E)(2)(f); (c) change a 

reference to ‘‘remaining’’ shares as Rule 

1080(n)(ii)(E)(2)(f) to ‘‘residual’’; and (d) 

relocate PIXL ISO in Commentary .08 to 

Rule 1080(n) to 1080(n)(ii)(K) are 

consistent with the Act because these 

amendments provide greater detail and 

clarity to the rule text. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

competition among the options 

exchanges is vigorous and this proposal 

is intended to afford the Exchange the 

opportunity to compete for order flow 

by offering an auction mechanism with 

a surrender feature similar to that of 

other exchanges.11

With respect to intra-market 

competition, the auction will be 

available to all Phlx members. The 

Exchange’s proposal to submit the 

Surrender amendment does not result in 

less competition, the PIXL mechanism 

should continue to encourage Phlx 

members to compete amongst each other 

by responding with their best price and 

size for a particular auction. The 

Exchange believes that the Initiator may 

be incentivized to initiate more PIXL 

auctions in light of the proposal. The 

Exchange’s proposal is a competitive 

response to similar provisions in the 

price improvement auction rules of 

other options exchanges.12 The 

Exchange believes this proposed rule 

change is necessary to permit fair 

competition among the options 

exchanges and to establish more 

uniform price improvement auction 

rules on the various options exchanges. 

The Exchange anticipates that this 

auction proposal will allow Phlx to 

compete on equal footing with other 

options exchanges and for this reason 

the proposal does not create an undue 

burden on inter-market competition. 

The Exchange’s proposal to amend 

Rule 1080(n)(ii)(F) to amend the current 

rule text for the addition of language to 

include the ‘‘Reference BBO’’ to clarify 

where the price is equal to or better than 

the NBBO or PBBO and the Reference 

BBO (internal market BBO), due to 

repricing for trade-throughs or locked 

and crossed markets, adds clarity and 

precision to the current rule text. The 

proposed amendments would apply 

uniformly to all Phlx members that elect 

to enter orders into the PIXL auction. 

The Exchange believes that these 

proposed amendments are consistent 

with the Act and do not otherwise 

create an impediment to a free and open 

market because today investors are 

subject to this repricing. 

The Exchange’s proposals to: (a) 

Correct a word in Rule 1080(n)(i)(C) 

from ‘‘of’’ to ‘‘or’’; (b) replace a reference 

to Rule 1080(n) at Commentary .07 to 

Rule 1098 to properly reference rule text 

related to Complex Orders at Rule 

1080(n)(ii)(E)(2)(f); (c) change a 

reference to ‘‘remaining’’ shares as Rule 

1080(n)(ii)(E)(2)(f) to ‘‘residual’’; and (d) 

relocate PIXL ISO in Commentary .08 to 

Rule 1080(n) to 1080(n)(ii)(K) simply 

provide greater detail and clarity to the 

rule text. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 


ethrower on DSK3G9T082PROD with NOTICES
51902 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(iii). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

15 17 CFR 200.30–3(a)(12). 

1 IHR’s name has been changed from Mississippi 

Tennessee Holdings, LLC (MTH), to IHR. IHR is a 

Class III rail carrier as a result of MTH’s acquisition 

of a rail line in Mississippi Tennessee Holdings, 

LLC—Acquisition & Operation Exemption—Rail 

Line of Mississippi & Tennessee Railnet, Inc., 

between Houston, Miss., & Middleton, Tenn., in 

Chickasaw, Pontotoc, Union & Tippah Counties, 

Miss., & Hardeman County, Tenn., FD 34355 (STB 

served June 12, 2003). 

2 IHR filed its verified notice of exemption on 

October 23, 2017, and errata thereto on November 

1, 2017. 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 13 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.14

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2017–85 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2017–85. 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. 

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–Phlx–2017–85 and should 

be submitted on or before November 29, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24253 Filed 11–7–17; 8:45 am] 

BILLING CODE 8011–01–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. FD 36153] 

IHR Holdings, LLC—Acquisition 

Exemption—Santa Teresa Capital, LLC 

at Santa Teresa, Dona Ana County, 

N.M. 

IHR Holdings, LLC (IHR), a Class III 

carrier,1 has filed a verified notice of 

exemption 2 under 49 CFR 1150.41 to 

acquire from Santa Teresa Capital, LLC 

(STC), a noncarrier, approximately 4.13 

miles of rail line at and near Santa 

Teresa Industrial Park, Santa Teresa, 

Dona Ana County, N.M., that extends 

from a point of connection to Union 

Pacific Railroad Company (UP) at or 

near milepost no. 1280 on UP’s 

Lordsburg Subdivision to holding tracks 

adjacent to the industrial park and to 

three tracks that extend from the 

holding tracks into the industrial park 

that terminate at Strauss Road and at 

Industrial Drive (the Line). According to 

IHR, the Line does not have milepost 

numbers. 

IHR states that its affiliate, Santa 

Teresa Southern Railroad, LLC (STSR), 

operates over a portion of the Line. See 

Santa Teresa S. R.R.—Operation 

Exemption—Rail Line of Verde Logistics 

R.R. at Santa Teresa, Dona Ana Cty., 

N.M., FD 35599 (STB served Mar. 8, 

2012). 

According to IHR, it has reached an 

agreement with STC to acquire the Line. 

IHR states that the operator of the 

property will be STSR. 

IHR certifies that, as a result of the 

proposed transaction, its projected 

annual revenues will not result in its 

becoming a Class I or Class II rail carrier 

and will not exceed $5 million. IHR also 

certifies that the proposed transaction 

does not involve any interchange 

commitments. 

IHR states that the transaction will be 

consummated no sooner than the 

effective date of this notice. The earliest 

this transaction may be consummated is 

November 22, 2017 (30 days after the 

verified notice of exemption was filed). 

According to IHR, this action is 

categorically excluded from 

environmental review under 49 CFR 

1105.6(c) and from historic review 

under 49 CFR 1105.8(b). 

If the verified 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 effectiveness of 

the exemption. Petitions for stay must 

be filed no later than November 15, 

2017 (at least seven days before the 

exemption becomes effective). 

An original and 10 copies of all 

pleadings, referring to Docket No. FD 

36153, must be filed with the Surface 

Transportation Board, 395 E Street SW., 

Washington, DC 20423–0001. In 

addition, a copy of each pleading must 

be served on Thomas F. McFarland, 

Thomas F. McFarland, P.C., 208 South 

LaSalle Street, Suite 1666, Chicago, IL 

60604–1228. 

Board decisions and notices are 

available on our Web site at 

‘‘WWW.STB.GOV.’’ 

Decided: November 2, 2017. 

By the Board, Scott M. Zimmerman, Acting 

Director, Office of Proceedings. 

Tammy Lowery, 

Clearance Clerk. 

[FR Doc. 2017–24304 Filed 11–7–17; 8:45 am] 

BILLING CODE 4915–01–P 


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