82 FR 37626 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 154 (August 11, 2017)

Page Range		37626-37627
FR Document		2017-17070

Federal Register, Volume 82 Issue 154 (Friday, August 11, 2017)

[Federal Register Volume 82, Number 154 (Friday, August 11, 2017)]
[Notices]
[Pages 37626-37627]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17070]


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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 Tuesday, August 
15, 2017 at 1:00 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 Frank H. 
Chiappone, Andrew G. Guzzetti, William F. Lex, Thomas E. Livingston, 
Brian T. Mayer, and Philip S. Rabinovich, formerly registered 
representatives associated with former broker-dealer McGinn, Smith & 
Co., Inc.
    On February 25, 2015, the ALJ found that Chiappone, Lex, Livington, 
Mayer, and Rabinovich violated antifraud provisions of the federal 
securities laws by recommending that customers purchase securities 
without conducting a reasonable investigation into the offerings as 
well as provisions of the securities laws prohibiting unregistered 
offers and sales of securities. The ALJ barred or suspended these 
respondents from certain associations in the securities industry and 
ordered them to pay third-tier civil money penalties, to pay 
disgorgement of commissions received for their sales in violation of 
the antifraud provisions plus prejudgment interest, and to cease and 
desist from further violations of the securities laws. The ALJ found 
that Guzzetti failed reasonably to supervise the other respondents, 
ordered him to pay a third-tier civil money penalty, and suspended him 
from association in certain capacities in the securities industry.

[[Page 37627]]

    Respondents appealed the ALJ's findings of liability and the 
sanctions imposed to the Commission. The issues likely to be considered 
at oral argument include, among other things, whether the findings of 
liability should be sustained, and what sanctions, if any, are 
appropriate in the public interest, as well as respondents' arguments 
that the proceeding violated various Constitutional, statutory, and 
regulatory requirements.
    For further information, please contact Brent J. Fields from the 
Office of the Secretary at (202) 551-5400.

    Dated: August 8, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017-17070 Filed 8-9-17; 11:15 am]
 BILLING CODE 8011-01-P

37626 Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices

adding clarity as to which rules are At any time within 60 days of the the Commission does not edit personal
operative and when, thereby reducing filing of the proposed rule change, the identifying information from
potential confusion, and making the Commission summarily may submissions. You should submit only
Exchange’s rules easier to navigate. The temporarily suspend such rule change if information that you wish to make
Exchange also believes that eliminating it appears to the Commission that such available publicly. All submissions
obsolete material from its rulebook also action is necessary or appropriate in the should refer to File Number SR–
removes impediments to and perfects public interest, for the protection of NYSEARCA–2017–82 and should be
the mechanism of a free and open investors, or otherwise in furtherance of submitted on or before September 1,
market by removing confusion that may the purposes of the Act. If the 2017.
result from having obsolete material in Commission takes such action, the For the Commission, by the Division of
the Exchange’s rulebook. The Exchange Commission shall institute proceedings Trading and Markets, pursuant to delegated
believes that eliminating such obsolete to determine whether the proposed rule authority.12
material would not be inconsistent with change should be approved or Eduardo A. Aleman,
the public interest and the protection of disapproved. Assistant Secretary.
investors because investors will not be IV. Solicitation of Comments [FR Doc. 2017–16928 Filed 8–10–17; 8:45 am]
harmed and in fact would benefit from
increased transparency, thereby Interested persons are invited to BILLING CODE 8011–01–P

reducing potential confusion. submit written data, views, and
arguments concerning the foregoing,
B. Self-Regulatory Organization’s including whether the proposed rule SECURITIES AND EXCHANGE
Statement on Burden on Competition change is consistent with the Act. COMMISSION
The Exchange does not believe that Comments may be submitted by any of
Sunshine Act Meeting
the proposed rule change would impose the following methods:
any burden on competition that is not Electronic Comments Notice is hereby given, pursuant to
necessary or appropriate in furtherance the provisions of the Government in the
• Use the Commission’s Internet
of the purposes of the Act. The Sunshine Act, Public Law 94–409, that
comment form (http://www.sec.gov/
proposed change is not designed to the Securities and Exchange
rules/sro.shtml); or
address any competitive issue but rather • Send an email to rule-comments@ Commission will hold an Open Meeting
facilitate the industry’s transition to a sec.gov. Please include File Number SR– on Tuesday, August 15, 2017 at 1:00
T+2 regular-way settlement cycle. The NYSEARCA–2017–82 on the subject p.m., in the Auditorium (L–002) at the
Exchange also believes that the line. Commission’s headquarters building, to
proposed rule change will serve to hear oral argument in an appeal from an
promote clarity and consistency, Paper Comments initial decision of an administrative law
thereby reducing burdens on the • Send paper comments in triplicate judge by respondents Frank H.
marketplace and facilitating investor to Brent J. Fields, Secretary, Securities Chiappone, Andrew G. Guzzetti,
protection. and Exchange Commission, 100 F Street William F. Lex, Thomas E. Livingston,
NE., Washington, DC 20549–1090. Brian T. Mayer, and Philip S.
C. Self-Regulatory Organization’s
All submissions should refer to File Rabinovich, formerly registered
Statement on Comments on the
Number SR–NYSEARCA–2017–82. This representatives associated with former
Proposed Rule Change Received From
file number should be included on the broker-dealer McGinn, Smith & Co., Inc.
Members, Participants, or Others
subject line if email is used. To help the On February 25, 2015, the ALJ found
No written comments were solicited Commission process and review your that Chiappone, Lex, Livington, Mayer,
or received with respect to the proposed comments more efficiently, please use and Rabinovich violated antifraud
rule change. only one method. The Commission will provisions of the federal securities laws
III. Date of Effectiveness of the post all comments on the Commission’s by recommending that customers
Proposed Rule Change and Timing for Internet Web site (http://www.sec.gov/ purchase securities without conducting
Commission Action rules/sro.shtml). Copies of the a reasonable investigation into the
submission, all subsequent offerings as well as provisions of the
Because the foregoing proposed rule amendments, all written statements securities laws prohibiting unregistered
change does not: (i) Significantly affect with respect to the proposed rule offers and sales of securities. The ALJ
the protection of investors or the public change that are filed with the barred or suspended these respondents
interest; (ii) impose any significant Commission, and all written from certain associations in the
burden on competition; and (iii) become communications relating to the securities industry and ordered them to
operative for 30 days from the date on proposed rule change between the pay third-tier civil money penalties, to
which it was filed, or such shorter time Commission and any person, other than pay disgorgement of commissions
as the Commission may designate, it has those that may be withheld from the received for their sales in violation of
become effective pursuant to Section public in accordance with the the antifraud provisions plus
19(b)(3)(A) of the Act 10 and Rule 19b– provisions of 5 U.S.C. 552, will be prejudgment interest, and to cease and
4(f)(6) thereunder.11 available for Web site viewing and desist from further violations of the
securities laws. The ALJ found that
asabaliauskas on DSKBBXCHB2PROD with NOTICES

printing in the Commission’s Public
10 15 U.S.C. 78s(b)(3)(A). Reference Room, 100 F Street NE., Guzzetti failed reasonably to supervise
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Washington, DC 20549 on official the other respondents, ordered him to
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of its intent to file the business days between the hours of pay a third-tier civil money penalty, and
proposed rule change, along with a brief description 10:00 a.m. and 3:00 p.m. Copies of the suspended him from association in
and text of the proposed rule change, at least five filing also will be available for certain capacities in the securities
business days prior to the date of filing of the industry.
proposed rule change, or such shorter time as
inspection and copying at the principal
designated by the Commission. The Exchange has office of the Exchange. All comments
satisfied this requirement. received will be posted without change; 12 17 CFR 200.30–3(a)(12).

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Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37627

Respondents appealed the ALJ’s The text of the proposed rule change applicable rule. In this filing, the
findings of liability and the sanctions is available on the Exchange’s Web site Exchange proposes to adopt procedures
imposed to the Commission. The issues at www.ise.com, at the principal office that will lead to a more objective and
likely to be considered at oral argument of the Exchange, and at the uniform way to determine Theoretical
include, among other things, whether Commission’s Public Reference Room. Price in the event a reliable NBBO is not
the findings of liability should be available. In addition to this change, the
II. Self-Regulatory Organization’s
sustained, and what sanctions, if any, Exchange has proposed two additional
Statement of the Purpose of, and
are appropriate in the public interest, as minor changes to its rules. The
Statutory Basis for, the Proposed Rule
well as respondents’ arguments that the Exchange’s proposal mirrors that of Bats
Change
proceeding violated various BZX, which the Exchange [sic]
Constitutional, statutory, and regulatory In its filing with the Commission, the approved on July 6, 2017,4 and those
requirements. Exchange included statements that the other options exchanges intend
For further information, please concerning the purpose of and basis for to file, except that it omits the section
contact Brent J. Fields from the Office of the proposed rule change and discussed of the proposal that pertains to trading
the Secretary at (202) 551–5400. any comments it received on the halts due to the fact that the
proposed rule change. The text of these Supplementary Material to Exchange
Dated: August 8, 2017. statements may be examined at the Rule 702 already includes the
Brent J. Fields, places specified in Item IV below. The applicable language.
Secretary. Exchange has prepared summaries, set
[FR Doc. 2017–17070 Filed 8–9–17; 11:15 am] forth in sections A, B, and C below, of Calculation of Theoretical Price Using a
BILLING CODE 8011–01–P the most significant aspects of such Third Party Provider
statements. Under the harmonized rule, when
reviewing a transaction as potentially
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
erroneous, the Exchange needs to first
COMMISSION Statement of the Purpose of, and
determine the ‘‘Theoretical Price’’ of the
Statutory Basis for, the Proposed Rule
option, i.e., the Exchange’s estimate of
[Release No. 34–81322; File No. SR–ISE– Change
2017–76] the correct market price for the option.
1. Purpose Pursuant to Rule 720, if the applicable
Self-Regulatory Organizations; Nasdaq The Exchange and other options option series is traded on at least one
ISE, LLC; Notice of Filing and exchanges recently adopted a new, other options exchange, then the
Immediate Effectiveness of Proposed harmonized rule related to the Theoretical Price of an option series is
Rule Change To Amend Rule 720, adjustment and nullification of the last national best bid (‘‘NBB’’) just
Nullification and Adjustment of erroneous options transactions, prior to the trade in question with
Options Transactions Including including a specific provision related to respect to an erroneous sell transaction
Obvious Errors coordination in connection with large- or the last national best offer (‘‘NBO’’)
scale events involving erroneous just prior to the trade in question with
August 7, 2017. respect to an erroneous buy transaction
options transactions.3 The Exchange
Pursuant to Section 19(b)(1) of the believes that the changes the options unless one of the exceptions described
Securities Exchange Act of 1934 (the exchanges implemented with the new, below exists. Thus, whenever the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 harmonized rule have led to increased Exchange has a reliable NBB or NBO, as
notice is hereby given that on July 26, transparency and finality with respect to applicable, just prior to the transaction,
2017, Nasdaq ISE, LLC (‘‘ISE’’ or the adjustment and nullification of then the Exchange uses this NBB or
‘‘Exchange’’) filed with the Securities erroneous options transactions. NBO as the Theoretical Price.
and Exchange Commission However, as part of the initial initiative, The Rule also contains various
(‘‘Commission’’) the proposed rule the Exchange and other options provisions governing specific situations
change as described in Items I and II exchanges deferred a few specific where the NBB or NBO is not available
below, which Items have been prepared matters for further discussion. or may not be reliable. Specifically, the
by the Exchange. The Commission is Specifically, as described in the Initial Rule specifies situations in which there
publishing this notice to solicit Filing, the Exchange and all other are no quotes or no valid quotes for
comments on the proposed rule change options exchanges have been working to comparison purposes, when the
from interested persons. further improve the review of national best bid or offer (‘‘NBBO’’) is
potentially erroneous transactions as determined to be too wide to be reliable,
I. Self-Regulatory Organization’s and at the open of trading on each
Statement of the Terms of Substance of well as their subsequent adjustment by
creating an objective and universal way trading day. In each of these
the Proposed Rule Change circumstances, in turn, because the NBB
to determine Theoretical Price in the
The Exchange proposes to amend event a reliable NBBO is not available. or NBO is not available or is deemed to
Rule 720, Nullification and Adjustment Because this initiative required be unreliable, the Exchange determines
of Options Transactions including Theoretical Price. Under the current
additional exchange and industry
Obvious Errors. Rule, when determining Theoretical
discussion as well as additional time for
While these amendments are effective Price, Exchange personnel generally
development and implementation, the
consult and refer to data such as the
asabaliauskas on DSKBBXCHB2PROD with NOTICES

upon filing, the Exchange has Exchange and the other options
designated the proposed amendments to prices of related series, especially the
exchanges determined to proceed with
be operative on a date that is within closest strikes in the option in question.
the Initial Filing and to undergo a
ninety (90) days after the Commission Exchange personnel may also take into
secondary initiative to complete any
approved a similar proposal filed by additional improvements to the 4 See Securities Exchange Act Release No. 34–
Bats BZX on July 6, 2017.
81084 (July 6, 2017) (granting approval of Bats BZX
3 See Securities Exchange Act Release No. 34– proposal), 82 FR 32216 (July 12, 2017); 82 FR 23684
1 15 U.S.C. 78s(b)(1). 74896 (May 7, 2015); 80 FR 27373 (May 13, 2015) (May 23, 2017) (SR–BatsBZX–2017–035) (notice of
2 17 CFR 240.19b–4. (SR–ISE–2015–18) (the ‘‘Initial Filing’’). filing of Bats BZX proposal).

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Document Created: 2018-10-24 11:48:08
Document Modified: 2018-10-24 11:48:08

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		82 FR 37626