82 FR 56291 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing of Proposed Minor Rule Violation Plan

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 227 (November 28, 2017)

[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Notices]
[Pages 56291-56292]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25647]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82145; File No. 4-714]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing of Proposed Minor Rule Violation Plan

November 22, 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 November 16, 2017, Miami International Securities 
Exchange, 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 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.
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    \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).
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    The Exchange proposes to include in its MRVP the procedures and 
violations

[[Page 56292]]

currently included in Exchange Rule 1014 (``Imposition of Fines for 
Minor Rule Violations'').\6\ According to the Exchange's MRVP, under 
Rule 1014, 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 1014(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.
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    \6\ The Exchange received its grant of registration on December 
3, 2012, which included approving the rules that govern the 
Exchange. See Securities Exchange Act Release No. 68341 (December 3, 
2012), 77 FR 73065 (December 7, 2012). See also Securities Exchange 
Act Release No. 70357 (September 10, 2013), 78 FR 56960 (September 
16, 2013) (Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change to Amend Exchange Rule 1014).
    \7\ While Rule 1014 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 1014(d) that do not exceed $2,500.
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    The Exchange proposes that, as set forth in Exchange Rule 1014(d), 
violations of the following rules would be appropriate for disposition 
under the MRVP: Rule 307 (Position Limits); Rule 803 (Focus Reports); 
Rule 804 (Requests for Trade Data); Rule 520 (Order Entry); Rule 603 
(Quotation Parameters); Rule 605 (Execution of Orders in Appointed 
Options); Rule 314 (Mandatory Systems Testing); Rule 700 (Exercise of 
Option Contracts); Rule 309 (Exercise Limits); Rule 310 (Reports 
Related to Position Limits); Rule 403 (Trading in Restricted Classes); 
Rule 604 (Market Maker Quotations); and Rules 1301, 1302, and 1303 
(Failure to Timely File Amendments to Form U4, Form U5, and Form BD). 
The Exchange notes that it is specifically excluding Rule 1014(d)(4), 
Conduct and Decorum Policies, from this filing.
    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 disposition date, the name of the firm/
individual, the Exchange's internal enforcement number, the review 
period, the nature of the violation type, the number of the rule that 
was violated, the number of instances the violation occurred, and the 
sanction imposed.
    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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. 4-714 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 No. 4-714. 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. 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 No. 4-714 and should be submitted on 
or before December 19, 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 December 19, 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. 4-714, 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.
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    \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\
Brent J. Fields,
Secretary.
[FR Doc. 2017-25647 Filed 11-27-17; 8:45 am]
 BILLING CODE 8011-01-P