81 FR 1654 - Sunshine Act Meeting
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 8 (January 13, 2016)
Federal Register Volume 81, Issue 8 (January 13, 2016)
| Page Range | 1654-1654 | |
| FR Document | 2016-00566 |
[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)] [Notices] [Page 1654] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-00566] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94-409, that the Securities and Exchange Commission will hold an Open Meeting on Friday, January 15, 2016, at 12:00 p.m., in the Auditorium (L-002) at the Commission's headquarters building, to hear oral argument in an appeal from an initial decision of an administrative law judge by respondents optionsXpress, Inc. and Jonathan I. Feldman. On June 7, 2013, the law judge found that optionsXpress violated Rules 204 and 204T of Regulation SHO by relying on buy-writes--that is, purchases of equity securities paired with the simultaneous sale of deep-in-the-money call options representing the same number of shares-- to satisfy its delivery and close-out obligations under Rules 204(a) and 204T(a). The initial decision also found that Feldman committed fraud in violation of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Exchange Act Rules 10b-5 and 10b-21 by repeatedly placing buy-writes to intentionally avoid his own, distinct delivery obligations. In addition, the initial decision found that optionsXpress caused and aided and abetted Feldman's antifraud violations. For these violations, the law judge ordered optionsXpress to cease and desist from violating Rule 204 of Reg. SHO and from causing or aiding and abetting violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Exchange Act Rules 10b-5 and 10b-21 and ordered Feldman to cease and desist from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Exchange Act Rules 10b-5 and 10b-21. The law judge also ordered that optionsXpress disgorge $1,574,599 and that Feldman disgorge $2,656,377 and imposed civil money penalties of $2,000,000 on optionsXpress and $2,000,000 on Feldman. Respondents appealed the initial decision's findings of violations and the sanctions imposed. The issues likely to be considered at oral argument include, among other things, whether optionsXpress violated Reg. SHO; whether Feldman violated the antifraud provisions; and, if so, what sanction, if any, is appropriate in the public interest. For further information, please contact the Office of the Secretary at (202) 551-5400. Dated: January 8, 2016. Brent J. Fields, Secretary. [FR Doc. 2016-00566 Filed 1-11-16; 11:15 am] BILLING CODE 8011-01-P
![1654 Federal Register / Vol. 81, No. 8 / Wednesday, January 13, 2016 / Notices
should, therefore, result in less • Send an email to rule-comments@ on Friday, January 15, 2016, at 12:00
burdensome and more efficient sec.gov. Please include File No. SR– p.m., in the Auditorium (L–002) at the
regulatory compliance and EDGX–2015–68 on the subject line. Commission’s headquarters building, to
understanding of Exchange Rules for hear oral argument in an appeal from an
Paper Comments
common members of the BGM Affiliated initial decision of an administrative law
Exchanges and an enhanced ability of • Send paper comments in triplicate judge by respondents optionsXpress,
the BGM Affiliated Exchanges to fairly to Secretary, Securities and Exchange
Inc. and Jonathan I. Feldman.
and efficiently regulate Market Makers. Commission, 100 F Street NE.,
Washington, DC 20549–1090. On June 7, 2013, the law judge found
(C) Self-Regulatory Organization’s that optionsXpress violated Rules 204
All submissions should refer to File No.
Statement on Comments on the and 204T of Regulation SHO by relying
SR–EDGX–2015–68. This file number
Proposed Rule Change Received From on buy-writes—that is, purchases of
should be included on the subject line
Members, Participants or Others equity securities paired with the
if email is used. To help the
The Exchange has neither solicited Commission process and review your simultaneous sale of deep-in-the-money
nor received written comments on the comments more efficiently, please use call options representing the same
proposed rule change. only one method. The Commission will number of shares—to satisfy its delivery
III. Date of Effectiveness of the post all comments on the Commission’s and close-out obligations under Rules
Proposed Rule Change and Timing for Internet Web site (http://www.sec.gov/ 204(a) and 204T(a). The initial decision
Commission Action rules/sro.shtml). Copies of the also found that Feldman committed
submission, all subsequent fraud in violation of Section 17(a) of the
Because the foregoing proposed rule amendments, all written statements
change does not: Securities Act, Section 10(b) of the
with respect to the proposed rule Exchange Act, and Exchange Act Rules
A. Significantly affect the protection change that are filed with the
of investors or the public interest; 10b–5 and 10b–21 by repeatedly placing
Commission, and all written buy-writes to intentionally avoid his
B. impose any significant burden on communications relating to the
competition; and own, distinct delivery obligations. In
proposed rule change between the
C. become operative for 30 days from addition, the initial decision found that
Commission and any person, other than
the date on which it was filed, or such optionsXpress caused and aided and
those that may be withheld from the
shorter time as the Commission may abetted Feldman’s antifraud violations.
public in accordance with the
designate, it has become effective
provisions of 5 U.S.C. 552, will be For these violations, the law judge
pursuant to Section 19(b)(3)(A) of the
available for Web site viewing and ordered optionsXpress to cease and
Act 24 and Rule 19b–4(f)(6) 25
printing in the Commission’s Public desist from violating Rule 204 of Reg.
thereunder. The Exchange has given the
Reference Room, 100 F Street NE., SHO and from causing or aiding and
Commission written notice of its intent
Washington, DC 20549, on official abetting violations of Section 17(a) of
to file the proposed rule change, along
business days between the hours of the Securities Act, Section 10(b) of the
with a brief description and text of the
10:00 a.m. and 3:00 p.m. Copies of such Exchange Act, and Exchange Act Rules
proposed rule change, at least five
filing will also be available for 10b–5 and 10b–21 and ordered Feldman
business days prior to the date of filing
inspection and copying at the principal to cease and desist from violating
of the proposed rule change,
At any time within 60 days of the office of the Exchange. All comments Section 17(a) of the Securities Act,
filing of the proposed rule change, the received will be posted without change;
Section 10(b) of the Exchange Act, and
Commission summarily may the Commission does not edit personal
Exchange Act Rules 10b–5 and 10b–21.
temporarily suspend such rule change if identifying information from
submissions. You should submit only The law judge also ordered that
it appears to the Commission that such optionsXpress disgorge $1,574,599 and
action is necessary or appropriate in the information that you wish to make
available publicly. All submissions that Feldman disgorge $2,656,377 and
public interest, for the protection of imposed civil money penalties of
investors, or otherwise in furtherance of should refer to File No. SR–EDGX–
2015–68 and should be submitted on or $2,000,000 on optionsXpress and
the purposes of the Act. If the $2,000,000 on Feldman.
Commission takes such action, the before February 3, 2016.
Commission will institute proceedings For the Commission, by the Division of Respondents appealed the initial
to determine whether the proposed rule Trading and Markets, pursuant to delegated decision’s findings of violations and the
change should be approved or authority.26 sanctions imposed. The issues likely to
disapproved. Robert W. Errett, be considered at oral argument include,
Deputy Secretary. among other things, whether
IV. Solicitation of Comments
[FR Doc. 2016–00467 Filed 1–12–16; 8:45 am] optionsXpress violated Reg. SHO;
Interested persons are invited to BILLING CODE 8011–01–P whether Feldman violated the antifraud
submit written data, views and provisions; and, if so, what sanction, if
arguments concerning the foregoing, any, is appropriate in the public
including whether the proposal is SECURITIES AND EXCHANGE interest.
consistent with the Act. Comments may COMMISSION
be submitted by any of the following For further information, please
asabaliauskas on DSK5VPTVN1PROD with NOTICES
methods: Sunshine Act Meeting contact the Office of the Secretary at
(202) 551–5400.
Electronic Comments Notice is hereby given, pursuant to
Dated: January 8, 2016.
• Use the Commission’s Internet the provisions of the Government in the
Sunshine Act, Public Law 94–409, that Brent J. Fields,
comment form (http://www.sec.gov/
rules/sro.shtml); or the Securities and Exchange Secretary.
Commission will hold an Open Meeting [FR Doc. 2016–00566 Filed 1–11–16; 11:15 am]
24 15 U.S.C. 78s(b)(3)(A). BILLING CODE 8011–01–P
25 17 CFR 240.19b–4(f)(6). 26 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 16:59 Jan 12, 2016 Jkt 238001 PO 00000 Frm 00057 Fmt 4703 Sfmt 9990 E:\FR\FM\13JAN1.SGM 13JAN1](https://thefederalregister.org/doc/81_FR_1662/page/1.svg)
Document Created: 2016-01-13 01:01:08
Document Modified: 2016-01-13 01:01:08
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 1654 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR