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, Issue 227 (November 28, 2017)
| Page Range | 56291-56292 | |
| FR Document | 2017-25647 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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 [[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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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 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. 4-714 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. --------------------------------------------------------------------------- \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
![Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices 56291
and remove impediments to a free and under Section 19(b)(2)(B) 12 of the Act to should be submitted on or before
open market by providing greater clarity determine whether the proposed rule December 19, 2017.
in the Exchange’s rules. change should be approved or For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated
B. Self-Regulatory Organization’s
authority.13
Statement on Burden on Competition IV. Solicitation of Comments
Eduardo A. Aleman,
The Exchange does not believe that Interested persons are invited to Assistant Secretary.
the proposed rule change will impose submit written data, views, and
[FR Doc. 2017–25691 Filed 11–27–17; 8:45 am]
any burden on competition that is not arguments concerning the foregoing,
BILLING CODE 8011–01–P
necessary or appropriate in furtherance including whether the proposed rule
of the purposes of the Exchange Act. change is consistent with the Act.
The proposed rule change is not Comments may be submitted by any of
SECURITIES AND EXCHANGE
intended to address competitive issues the following methods:
COMMISSION
but rather to reduce the paperwork
Electronic Comments
received by the Commission and ease [Release No. 34–82145; File No. 4–714]
the burden of submitting the Quarterly • Use the Commission’s Internet
and Annual Reports, without changing comment form (http://www.sec.gov/ Self-Regulatory Organizations; Miami
the information available to the rules/sro.shtml); or International Securities Exchange,
Commission. • Send an email to rule-comments@ LLC; Notice of Filing of Proposed
sec.gov. Please include File Number SR– Minor Rule Violation Plan
C. Self-Regulatory Organization’s NYSEArca–2017–132 on the subject
Statement on Comments on the November 22, 2017.
line.
Proposed Rule Change Received From Pursuant to Section 19(d)(1) of the
Members, Participants, or Others Paper Comments Securities Exchange Act of 1934
• Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19d–1(c)(2)
No written comments were solicited
to Secretary, Securities and Exchange thereunder,2 notice is hereby given that
or received with respect to the proposed
Commission, 100 F Street NE., on November 16, 2017, Miami
rule change.
Washington, DC 20549–1090. International Securities Exchange, LLC
III. Date of Effectiveness of the All submissions should refer to File (‘‘Exchange’’) filed with the Securities
Proposed Rule Change and Timing for Number SR–NYSEArca–2017–132. This and Exchange Commission
Commission Action file number should be included on the (‘‘Commission’’) a proposed minor rule
The Exchange has filed the proposed subject line if email is used. To help the violation plan (‘‘MRVP’’) with sanctions
rule change pursuant to Section Commission process and review your not exceeding $2,500 which would not
19(b)(3)(A)(iii) of the Act 9 and Rule comments more efficiently, please use be subject to the provisions of Rule 19d–
19b–4(f)(6) thereunder.10 Because the only one method. The Commission will 1(c)(1) of the Act 3 requiring that a self-
proposed rule change does not: (i) post all comments on the Commission’s regulatory organization (‘‘SRO’’)
Significantly affect the protection of Internet Web site (http://www.sec.gov/ promptly file notice with the
investors or the public interest; (ii) rules/sro.shtml). Copies of the Commission of any final disciplinary
impose any significant burden on submission, all subsequent action taken with respect to any person
competition; and (iii) become operative amendments, all written statements or organization.4 In accordance with
prior to 30 days from the date on which with respect to the proposed rule Rule 19d–1(c)(2) under the Act,5 the
it was filed, or such shorter time as the change that are filed with the Exchange proposed to designate certain
Commission may designate, if Commission, and all written specified rule violations as minor rule
consistent with the protection of communications relating to the violations, and requested that it be
investors and the public interest, the proposed rule change between the relieved of the prompt reporting
proposed rule change has become Commission and any person, other than requirements regarding such violations,
effective pursuant to Section 19(b)(3)(A) those that may be withheld from the provided it gives notice of such
of the Act and Rule 19b–4(f)(6)(iii) public in accordance with the violations to the Commission on a
thereunder.11 provisions of 5 U.S.C. 552, will be quarterly basis.
At any time within 60 days of the The Exchange proposes to include in
available for Web site viewing and
filing of such proposed rule change, the its MRVP the procedures and violations
printing in the Commission’s Public
Commission summarily may Reference Room, 100 F Street NE., 13 17 CFR 200.30–3(a)(12).
temporarily suspend such rule change if Washington, DC 20549 on official 1 15 U.S.C. 78s(d)(1).
it appears to the Commission that such business days between the hours of 2 17 CFR 240.19d–1(c)(2).
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of the 3 17 CFR 240.19d–1(c)(1).
public interest, for the protection of filing also will be available for 4 The Commission adopted amendments to
investors, or otherwise in furtherance of inspection and copying at the principal paragraph (c) of Rule 19d–1 to allow SROs to
the purposes of the Act. If the office of the Exchange. All comments submit for Commission approval plans for the
Commission takes such action, the abbreviated reporting of minor disciplinary
received will be posted without change. infractions. See Securities Exchange Act Release
Commission shall institute proceedings Persons submitting comments are No. 21013 (June 1, 1984), 49 FR 23828 (June 8,
cautioned that we do not redact or edit 1984). Any disciplinary action taken by an SRO
9 15 U.S.C. 78s(b)(3)(A)(iii). against any person for violation of a rule of the SRO
personal identifying information from
ethrower on DSK3G9T082PROD with NOTICES
10 17 CFR 240.19b–4(f)(6). which has been designated as a minor rule violation
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– comment submissions. You should pursuant to such a plan filed with and declared
4(f)(6) requires a self-regulatory organization to give submit only information that you wish effective by the Commission shall not be considered
the Commission written notice of its intent to file to make available publicly. All ‘‘final’’ for purposes of Section 19(d)(1) of the Act
the proposed rule change at least five business days if the sanction imposed consists of a fine not
submissions should refer to File exceeding $2,500 and the sanctioned person has not
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Number SR–NYSEArca–2017–132 and sought an adjudication, including a hearing, or
Commission. The Exchange has satisfied this otherwise exhausted his administrative remedies.
requirement. 12 15 U.S.C. 78s(b)(2)(B). 5 17 CFR 240.19d–1(c)(2).
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![56292 Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices
currently included in Exchange Rule The quarterly report will include: The redact or edit personal identifying
1014 (‘‘Imposition of Fines for Minor disposition date, the name of the firm/ information from comment submissions.
Rule Violations’’).6 According to the individual, the Exchange’s internal You should submit only information
Exchange’s MRVP, under Rule 1014, the enforcement number, the review period, that you wish to make available
Exchange may impose a fine (not to the nature of the violation type, the publicly. All submissions should refer
exceed $2,500) on any Member, or number of the rule that was violated, the to File No. 4–714 and should be
person associated with or employed by number of instances the violation submitted on or before December 19,
a Member, for any rule listed in Rule occurred, and the sanction imposed. 2017.
1014(d).7 The Exchange shall serve the The Exchange also proposes that,
person against whom a fine is imposed going forward, to the extent that there II. Date of Effectiveness of the Proposed
with a written statement setting forth are any changes to the rules applicable Minor Rule Violation Plan and Timing
the rule or rules violated, the act or to the Exchange’s MRVP, the Exchange for Commission Action
omission constituting each such requests that the Commission deem Pursuant to Section 19(d)(1) of the Act
violation, the fine imposed, and the date such changes to be modifications to the and Rule 19d–1(c)(2) thereunder,8 after
by which such determination becomes Exchange’s MRVP. December 19, 2017, the Commission
final or by which such determination I. Solicitation of Comments may, by order, declare the Exchange’s
must be contested. If the person against proposed MRVP effective if the plan is
whom the fine is imposed pays the fine, Interested persons are invited to consistent with the public interest, the
such payment shall be deemed to be a submit written data, views, and protection of investors, or otherwise in
waiver of such person’s right to a arguments concerning the Exchange’s furtherance of the purposes of the Act.
disciplinary proceeding and any review proposed MRVP, including whether the The Commission in its order may
of the matter under the Exchange rules. proposed MRVP is consistent with the restrict the categories of violations to be
Any person against whom a fine is Act. Comments may be submitted by designated as minor rule violations and
imposed may contest the Exchange’s any of the following methods: may impose any other terms or
determination by filing with the Electronic Comments conditions to the proposed MRVP, File
Exchange a written answer, at which No. 4–714, and to the period of its
point the matter shall become a • Use the Commission’s Internet
effectiveness, which the Commission
disciplinary proceeding. comment form (http://www.sec.gov/
deems necessary or appropriate in the
The Exchange proposes that, as set rules/sro.shtml); or
public interest, for the protection of
forth in Exchange Rule 1014(d), • Send an email to rule-comments@
investors or otherwise in furtherance of
violations of the following rules would sec.gov. Please include File No. 4–714
the purposes of the Act.
be appropriate for disposition under the on the subject line.
For the Commission, by the Division of
MRVP: Rule 307 (Position Limits); Rule Paper Comments Trading and Markets, pursuant to delegated
803 (Focus Reports); Rule 804 (Requests
• Send paper comments in triplicate authority.9
for Trade Data); Rule 520 (Order Entry);
to Brent J. Fields, Secretary, Securities Brent J. Fields,
Rule 603 (Quotation Parameters); Rule
and Exchange Commission, 100 F Street Secretary.
605 (Execution of Orders in Appointed
NE., Washington, DC 20549–1090. [FR Doc. 2017–25647 Filed 11–27–17; 8:45 am]
Options); Rule 314 (Mandatory Systems
Testing); Rule 700 (Exercise of Option All submissions should refer to File No. BILLING CODE 8011–01–P
Contracts); Rule 309 (Exercise Limits); 4–714. This file number should be
Rule 310 (Reports Related to Position included on the subject line if email is
Limits); Rule 403 (Trading in Restricted used. To help the Commission process SECURITIES AND EXCHANGE
Classes); Rule 604 (Market Maker and review your comments more COMMISSION
Quotations); and Rules 1301, 1302, and efficiently, please use only one method. [SEC File No. 270–422, OMB Control No.
1303 (Failure to Timely File The Commission will post all comments 3235–0471]
Amendments to Form U4, Form U5, and on the Commission’s Internet Web site
Form BD). The Exchange notes that it is (http://www.sec.gov/rules/sro.shtml). Submission for OMB Review;
specifically excluding Rule 1014(d)(4), Copies of the submission, all subsequent Comment Request
Conduct and Decorum Policies, from amendments, all written statements
with respect to the proposed MRVP that Upon Written Request, Copies Available
this filing. From: U.S. Securities and Exchange
Upon the Commission’s declaration of are filed with the Commission, and all
written communications relating to the Commission, Office of FOIA Services,
effectiveness of the MRVP, the Exchange
proposed MRVP between the 100 F Street NE., Washington, DC
will provide to the Commission a
Commission and any person, other than 20549–2736
quarterly report for any actions taken on
minor rule violations under the MRVP. those that may be withheld from the Extension:
public in accordance with the Rule 15c1–5
6 The Exchange received its grant of registration provisions of 5 U.S.C. 552, will be Notice is hereby given that pursuant
on December 3, 2012, which included approving available for Web site viewing and to the Paperwork Reduction Act of 1995
the rules that govern the Exchange. See Securities
Exchange Act Release No. 68341 (December 3,
printing in the Commission’s Public (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
2012), 77 FR 73065 (December 7, 2012). See also Reference Room, 100 F Street NE., Securities and Exchange Commission
Securities Exchange Act Release No. 70357 Washington, DC 20549, on official (‘‘Commission’’) has submitted to the
(September 10, 2013), 78 FR 56960 (September 16, business days between the hours of Office of Management and Budget
ethrower on DSK3G9T082PROD with NOTICES
2013) (Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change to Amend Exchange
10:00 a.m. and 3:00 p.m. Copies of the (‘‘OMB’’) a request for approval of
Rule 1014). proposed MRVP also will be available extension of the previously approved
7 While Rule 1014 allows the Exchange to for inspection and copying at the collection of information provided for in
administer fines up to $5,000, the Exchange is only principal office of the Exchange. All Rule 15c1–5 (17 CFR 240.15c1–5) under
seeking relief from the reporting requirements of
paragraph (c)(1) of Rule 19d–1 for fines
comments received will be posted
administered under Rule 1014(d) that do not exceed without change. Persons submitting 8 15 U.S.C. 78s(d)(1); 17 CFR 240.19d–1(c)(2).
$2,500. comments are cautioned that we do not 9 17 CFR 200.30–3(a)(44).
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Document Created: 2017-11-28 01:51:12
Document Modified: 2017-11-28 01:51:12
| 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 56291 |
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