82 FR 14556 - Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing of Proposed Minor Rule Violation Plan
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 53 (March 21, 2017)
Federal Register Volume 82, Issue 53 (March 21, 2017)
| Page Range | 14556-14557 | |
| FR Document | 2017-05554 |
[Federal Register Volume 82, Number 53 (Tuesday, March 21, 2017)] [Notices] [Pages 14556-14557] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05554] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80259; File No. 4-707] Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing of Proposed Minor Rule Violation Plan March 16, 2017. Pursuant to Section 19(d)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19d-1(c)(2) thereunder,\2\ notice is hereby given that on March 9, 2017, ISE Mercury, LLC (``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed minor rule violation plan (``MRVP'') with sanctions not exceeding $2,500 which would not be subject to the provisions of Rule 19d-1(c)(1) of the Act \3\ requiring that a self-regulatory organization (``SRO'') promptly file notice with the Commission of any final disciplinary action taken with respect to any person or organization.\4\ In accordance with [[Page 14557]] Rule 19d-1(c)(2) under the Act,\5\ the Exchange proposed to designate certain specified rule violations as minor rule violations, and requested that it be relieved of the prompt reporting requirements regarding such violations, provided it gives notice of such violations to the Commission on a quarterly basis. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(d)(1). \2\ 17 CFR 240.19d-1(c)(2). \3\ 17 CFR 240.19d-1(c)(1). \4\ The Commission adopted amendments to paragraph (c) of Rule 19d-1 to allow SROs to submit for Commission approval plans for the abbreviated reporting of minor disciplinary infractions. See Securities Exchange Act Release No. 21013 (June 1, 1984), 49 FR 23828 (June 8, 1984). Any disciplinary action taken by an SRO against any person for violation of a rule of the SRO which has been designated as a minor rule violation pursuant to such a plan filed with and declared effective by the Commission shall not be considered ``final'' for purposes of Section 19(d)(1) of the Act if the sanction imposed consists of a fine not exceeding $2,500 and the sanctioned person has not sought an adjudication, including a hearing, or otherwise exhausted his administrative remedies. \5\ 17 CFR 240.19d-1(c)(2). --------------------------------------------------------------------------- The Exchange proposes to include in its MRVP the procedures and violations currently included in Exchange Rule 1614 (``Imposition of Fines for Minor Rule Violations''), which has been incorporated by reference from the International Securities Exchange's rule book.\6\ According to the Exchange's MRVP, under Rule 1614, the Exchange may impose a fine (not to exceed $2,500) on any Member, or person associated with or employed by a Member, for any rule listed in Rule 1614(d).\7\ The Exchange shall serve the person against whom a fine is imposed with a written statement setting forth the rule or rules violated, the act or omission constituting each such violation, the fine imposed, and the date by which such determination becomes final or by which such determination must be contested. If the person against whom the fine is imposed pays the fine, such payment shall be deemed to be a waiver of such person's right to a disciplinary proceeding and any review of the matter under the Exchange rules. Any person against whom a fine is imposed may contest the Exchange's determination by filing with the Exchange a written answer, at which point the matter shall become a disciplinary proceeding. --------------------------------------------------------------------------- \6\ The Exchange received its grant of registration on January 29, 2016, which included approving the rules that govern the Exchange. See Securities Exchange Act Release No. 76998 (Jan. 29, 2016), 81 FR 6066 (Feb. 4, 2016). \7\ While Rule 1614 allows the Exchange to administer fines up to $5,000, the Exchange is only seeking relief from the reporting requirements of paragraph (c)(1) of Rule 19d-1 for fines administered under Rule 1614(d) that do not exceed $2,500. --------------------------------------------------------------------------- The Exchange proposes that, as set forth in Exchange Rule 1614(d), violations of the following rules would be appropriate for disposition under the MRVP: Rule 412 (Position Limits); Rule 1403 (Focus Reports); Rule 1404 (Requests for Trade Data); Rule 723 (Price Improvement Mechanism for Crossing Transactions); Rule 717 (Order Entry); Rule 803 (Quotation Parameters); Rule 805 (Execution of Orders in Appointed Options); Rule 419 (Mandatory Systems Testing); Rule 1100 (Exercise of Options Contracts); Rule 415 (Reports Related to Position Limits); and Rule 804(e) (Continuous Quotes). Upon the Commission's declaration of effectiveness of the MRVP, the Exchange will provide to the Commission a quarterly report for any actions taken on minor rule violations under the MRVP. The quarterly report will include: The Exchange's internal file number for the case, the name of the individual and/or organization, the nature of the violation, the specific rule provision violated, the sanction imposed, the number of times the rule violation occurred, and the date of the disposition. The Exchange also proposes that, going forward, to the extent that there are any changes to the rules applicable to the Exchange's MRVP, the Exchange requests that the Commission deem such changes to be modifications to the Exchange's MRVP. I. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the Exchange's proposed MRVP, including whether the proposed MRVP is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. 4-707 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 No. 4-707. 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 MRVP that are filed with the Commission, and all written communications relating to the proposed MRVP 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 proposed MRVP also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. 4-707 and should be submitted on or before April 11, 2017. II. Date of Effectiveness of the Proposed Minor Rule Violation Plan and Timing for Commission Action Pursuant to Section 19(d)(1) of the Act and Rule 19d-1(c)(2) thereunder,\8\ after April 11, 2017, the Commission may, by order, declare the Exchange's proposed MRVP effective if the plan is consistent with the public interest, the protection of investors, or otherwise in furtherance of the purposes of the Act. The Commission in its order may restrict the categories of violations to be designated as minor rule violations and may impose any other terms or conditions to the proposed MRVP, File No. 4-707, and to the period of its effectiveness, which the Commission deems necessary or appropriate in the public interest, for the protection of investors or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(d)(1); 17 CFR 240.19d-1(c)(2). \9\ 17 CFR 200.30-3(a)(44). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-05554 Filed 3-20-17; 8:45 am] BILLING CODE 8011-01-P
![14556 Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Notices
advantage of the percentage thresholds III. Date of Effectiveness of the printing in the Commission’s Public
and their applicable discounted fees. Proposed Rule Change and Timing for Reference Room, 100 F Street NE.,
Further, the Exchange believes that the Commission Action Washington, DC 20549 on official
proposed changes are reasonable and The foregoing rule change has become business days between the hours of
competitive as they will further effective pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of such
incentivize Participants to direct order 19(b)(3)(A)(ii) of the Exchange Act 7 and filing also will be available for
flow to the Exchange, benefiting all Rule 19b–4(f)(2) thereunder,8 because it inspection and copying at the principal
market participants. establishes or changes a due, or fee. office of the Exchange. All comments
The Exchange also believes the At any time within 60 days of the received will be posted without change;
proposed amendments to the BVR in filing of the proposed rule change, the the Commission does not edit personal
Section I.B.2 of the BOX Fee Schedule Commission summarily may identifying information from
are reasonable, equitable and not temporarily suspend the rule change if submissions. You should submit only
unfairly discriminatory. The BVR was it appears to the Commission that the information that you wish to make
adopted to attract Public Customer order action is necessary or appropriate in the available publicly. All submissions
flow to the Exchange by offering these public interest, for the protection of should refer to File Number SR–BOX–
Participants incentives to submit their investors, or would otherwise further 2017–09, and should be submitted on or
Public Customer PIP and COPIP Orders the purposes of the Act. If the before April 11, 2017.
to the Exchange and the Exchange Commission takes such action, the For the Commission, by the Division of
believes it is appropriate to now amend Commission shall institute proceedings Trading and Markets, pursuant to delegated
the BVR. The Exchange believes it is to determine whether the proposed rule authority.9
equitable and not unfairly should be approved or disapproved. Eduardo A. Aleman,
discriminatory to amend the BVR, as all
IV. Solicitation of Comments Assistant Secretary.
Participants have the ability to qualify
for a rebate, and rebates are provided [FR Doc. 2017–05496 Filed 3–20–17; 8:45 am]
Interested persons are invited to
equally to qualifying Participants. Other submit written data, views, and BILLING CODE 8011–01–P
exchanges employ similar incentive arguments concerning the foregoing,
programs; 6 and the Exchange believes including whether the proposed rule
that the proposed changes to the volume SECURITIES AND EXCHANGE
change is consistent with the Act.
thresholds are reasonable and COMMISSION
Comments may be submitted by any of
competitive when compared to the following methods: [Release No. 34–80259; File No. 4–707]
incentive structures at other exchanges.
Finally, the Exchange believes it is Electronic Comments Self-Regulatory Organizations; ISE
reasonable and appropriate to continue • Use the Commission’s Internet Mercury, LLC; Notice of Filing of
to provide incentives for Public comment form (http://www.sec.gov/ Proposed Minor Rule Violation Plan
Customers, which will result in greater rules/sro.shtml); or
liquidity and ultimately benefit all • Send an email to rule-comments@ March 16, 2017.
Participants trading on the Exchange. sec.gov. Please include File Number SR– Pursuant to Section 19(d)(1) of the
BOX–2017–09 on the subject line. Securities Exchange Act of 1934
B. Self-Regulatory Organization’s (‘‘Act’’) 1 and Rule 19d–1(c)(2)
Statement on Burden on Competition Paper Comments thereunder,2 notice is hereby given that
The Exchange does not believe that • Send paper comments in triplicate on March 9, 2017, ISE Mercury, LLC
the proposed rule change will impose to Secretary, Securities and Exchange (‘‘Exchange’’) filed with the Securities
any burden on competition not Commission, 100 F Street NE., and Exchange Commission
necessary or appropriate in furtherance Washington, DC 20549–1090. (‘‘Commission’’) a proposed minor rule
of the purposes of the Act. The All submissions should refer to File violation plan (‘‘MRVP’’) with sanctions
Exchange is simply proposing to amend Number SR–BOX–2017–09. This file not exceeding $2,500 which would not
certain percentage thresholds for number should be included on the be subject to the provisions of Rule 19d–
Auction Transaction fees and rebates in subject line if email is used. To help the 1(c)(1) of the Act 3 requiring that a self-
the BOX Fee Schedule. The Exchange Commission process and review your regulatory organization (‘‘SRO’’)
believes that the volume based rebates comments more efficiently, please use promptly file notice with the
and fees increase intermarket and only one method. The Commission will Commission of any final disciplinary
intramarket competition by incenting post all comments on the Commission’s action taken with respect to any person
Participants to direct their order flow to Internet Web site (http://www.sec.gov/ or organization.4 In accordance with
the exchange, which benefits all rules/sro.shtml). Copies of the
participants by providing more trading submission, all subsequent 9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(d)(1).
opportunities and improves competition amendments, all written statements
2 17 CFR 240.19d–1(c)(2).
on the Exchange. with respect to the proposed rule 3 17 CFR 240.19d–1(c)(1).
C. Self-Regulatory Organization’s change that are filed with the 4 The Commission adopted amendments to
Statement on Comments on the Commission, and all written paragraph (c) of Rule 19d–1 to allow SROs to
Proposed Rule Change Received From communications relating to the submit for Commission approval plans for the
proposed rule change between the abbreviated reporting of minor disciplinary
Members, Participants, or Others infractions. See Securities Exchange Act Release
mstockstill on DSK3G9T082PROD with NOTICES
Commission and any person, other than No. 21013 (June 1, 1984), 49 FR 23828 (June 8,
No written comments were either those that may be withheld from the 1984). Any disciplinary action taken by an SRO
solicited or received. public in accordance with the against any person for violation of a rule of the SRO
provisions of 5 U.S.C. 552, will be which has been designated as a minor rule violation
6 See Section B of the PHLX Pricing Schedule pursuant to such a plan filed with and declared
entitled ‘‘Customer Rebate Program;’’ ISE Gemini’s
available for Web site viewing and effective by the Commission shall not be considered
Qualifying Tier Thresholds (page 6 of the ISE ‘‘final’’ for purposes of Section 19(d)(1) of the Act
7 15 U.S.C. 78s(b)(3)(A)(ii).
Gemini Fee Schedule); and CBOE’s Volume if the sanction imposed consists of a fine not
Incentive Program (VIP). 8 17 CFR 240.19b–4(f)(2). exceeding $2,500 and the sanctioned person has not
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![Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Notices 14557
Rule 19d–1(c)(2) under the Act,5 the 415 (Reports Related to Position Limits); business days between the hours of
Exchange proposed to designate certain and Rule 804(e) (Continuous Quotes). 10:00 a.m. and 3:00 p.m. Copies of the
specified rule violations as minor rule Upon the Commission’s declaration of proposed MRVP also will be available
violations, and requested that it be effectiveness of the MRVP, the Exchange for inspection and copying at the
relieved of the prompt reporting will provide to the Commission a principal office of the Exchange. All
requirements regarding such violations, quarterly report for any actions taken on comments received will be posted
provided it gives notice of such minor rule violations under the MRVP. without change; the Commission does
violations to the Commission on a The quarterly report will include: The not edit personal identifying
quarterly basis. Exchange’s internal file number for the information from submissions. You
The Exchange proposes to include in case, the name of the individual and/or should submit only information that
its MRVP the procedures and violations organization, the nature of the violation, you wish to make available publicly. All
currently included in Exchange Rule the specific rule provision violated, the submissions should refer to File No. 4–
1614 (‘‘Imposition of Fines for Minor sanction imposed, the number of times 707 and should be submitted on or
Rule Violations’’), which has been the rule violation occurred, and the date before April 11, 2017.
incorporated by reference from the of the disposition.
International Securities Exchange’s rule The Exchange also proposes that, II. Date of Effectiveness of the Proposed
book.6 According to the Exchange’s going forward, to the extent that there Minor Rule Violation Plan and Timing
MRVP, under Rule 1614, the Exchange are any changes to the rules applicable for Commission Action
may impose a fine (not to exceed to the Exchange’s MRVP, the Exchange Pursuant to Section 19(d)(1) of the Act
$2,500) on any Member, or person requests that the Commission deem and Rule 19d–1(c)(2) thereunder,8 after
associated with or employed by a such changes to be modifications to the April 11, 2017, the Commission may, by
Member, for any rule listed in Rule Exchange’s MRVP. order, declare the Exchange’s proposed
1614(d).7 The Exchange shall serve the MRVP effective if the plan is consistent
person against whom a fine is imposed I. Solicitation of Comments
with the public interest, the protection
with a written statement setting forth Interested persons are invited to of investors, or otherwise in furtherance
the rule or rules violated, the act or submit written data, views, and of the purposes of the Act. The
omission constituting each such arguments concerning the Exchange’s Commission in its order may restrict the
violation, the fine imposed, and the date proposed MRVP, including whether the categories of violations to be designated
by which such determination becomes proposed MRVP is consistent with the as minor rule violations and may
final or by which such determination Act. Comments may be submitted by impose any other terms or conditions to
must be contested. If the person against any of the following methods: the proposed MRVP, File No. 4–707,
whom the fine is imposed pays the fine, and to the period of its effectiveness,
Electronic Comments
such payment shall be deemed to be a which the Commission deems necessary
waiver of such person’s right to a • Use the Commission’s Internet or appropriate in the public interest, for
disciplinary proceeding and any review comment form (http://www.sec.gov/ the protection of investors or otherwise
of the matter under the Exchange rules. rules/sro.shtml); or in furtherance of the purposes of the
Any person against whom a fine is • Send an email to rule-comments@
Act.
imposed may contest the Exchange’s sec.gov. Please include File No. 4–707
on the subject line. For the Commission, by the Division of
determination by filing with the Trading and Markets, pursuant to delegated
Exchange a written answer, at which Paper Comments authority.9
point the matter shall become a
• Send paper comments in triplicate Eduardo A. Aleman,
disciplinary proceeding.
The Exchange proposes that, as set to Secretary, Securities and Exchange Assistant Secretary.
forth in Exchange Rule 1614(d), Commission, 100 F Street NE., [FR Doc. 2017–05554 Filed 3–20–17; 8:45 am]
violations of the following rules would Washington, DC 20549–1090. BILLING CODE 8011–01–P
be appropriate for disposition under the All submissions should refer to File No.
MRVP: Rule 412 (Position Limits); Rule 4–707. This file number should be
1403 (Focus Reports); Rule 1404 included on the subject line if email is SECURITIES AND EXCHANGE
(Requests for Trade Data); Rule 723 used. To help the Commission process COMMISSION
(Price Improvement Mechanism for and review your comments more
efficiently, please use only one method. Sunshine Act Meeting
Crossing Transactions); Rule 717 (Order
Entry); Rule 803 (Quotation Parameters); The Commission will post all comments Notice is hereby given, pursuant to
Rule 805 (Execution of Orders in on the Commission’s Internet Web site the provisions of the Government in the
Appointed Options); Rule 419 (http://www.sec.gov/rules/sro.shtml). Sunshine Act, Public Law 94–409, that
(Mandatory Systems Testing); Rule 1100 Copies of the submission, all the Securities and Exchange
(Exercise of Options Contracts); Rule subsequent amendments, all written Commission will hold a closed meeting
statements with respect to the proposed on Thursday, March 23, 2017 at 11 a.m.
sought an adjudication, including a hearing, or MRVP that are filed with the Commissioners, Counsel to the
otherwise exhausted his administrative remedies. Commission, and all written Commissioners, the Secretary to the
5 17 CFR 240.19d–1(c)(2). communications relating to the Commission, and recording secretaries
6 The Exchange received its grant of registration
proposed MRVP between the will attend the closed meeting. Certain
on January 29, 2016, which included approving the Commission and any person, other than
mstockstill on DSK3G9T082PROD with NOTICES
rules that govern the Exchange. See Securities staff members who have an interest in
Exchange Act Release No. 76998 (Jan. 29, 2016), 81 those that may be withheld from the the matters also may be present.
FR 6066 (Feb. 4, 2016). public in accordance with the The General Counsel of the
7 While Rule 1614 allows the Exchange to provisions of 5 U.S.C. 552, will be Commission, or her designee, has
administer fines up to $5,000, the Exchange is only available for Web site viewing and
seeking relief from the reporting requirements of
certified that, in her opinion, one or
paragraph (c)(1) of Rule 19d–1 for fines
printing in the Commission’s Public
administered under Rule 1614(d) that do not exceed Reference Room, 100 F Street NE., 8 15 U.S.C. 78s(d)(1); 17 CFR 240.19d–1(c)(2).
$2,500. Washington, DC 20549, on official 9 17 CFR 200.30–3(a)(44).
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Document Created: 2017-03-21 01:09:42
Document Modified: 2017-03-21 01:09:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 14556 |
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