81 FR 1654 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 8 (January 13, 2016)

[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]


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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