82_FR_61897 82 FR 61649 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Order Declaring Effective a Minor Rule Violation Plan

82 FR 61649 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Order Declaring Effective a Minor Rule Violation Plan

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 248 (December 28, 2017)

Page Range61649-61650
FR Document2017-27989

Federal Register, Volume 82 Issue 248 (Thursday, December 28, 2017) 
[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Notices]
[Pages 61649-61650]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27989]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82384; File No. 4-714]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Order Declaring Effective a Minor Rule Violation Plan

December 21, 2017.
    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'' or 
``Plan'') pursuant to Section 19(d)(1) of the Securities Exchange Act 
of 1934 (``Act'') \1\ and Rule 19d-1(c)(2) thereunder.\2\ The proposed 
MRVP was published for comment on November 28, 2017.\3\ The Commission 
received no comments on the proposal. This order declares the 
Exchange's proposed MRVP effective.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(d)(1)
    \2\ 17 CFR 240.19d-1(c)(2).
    \3\ See Securities Exchange Act Release No. 82145 (November 22, 
2017), 82 FR 56291 (``Notice'').
---------------------------------------------------------------------------

    The Exchange's MRVP specifies the rule violations which will be 
included in the Plan and will have sanctions not exceeding $2,500. Any 
violations which are resolved under the MRVP would not be subject to 
the provisions of Rule 19d-1(c)(1) of the Act,\4\ which requires 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.\5\ In accordance with Rule 19d-1(c)(2) under 
the Act,\6\ the Exchange proposed to designate certain specified rule 
violations as eligible for consideration as minor rule violations, and 
requested that it be relieved of the prompt reporting requirements 
regarding such violations, provided it gives notice of the violations 
to the Commission on a quarterly basis.
---------------------------------------------------------------------------

    \4\ 17 CFR 240.19d-1(c)(1).
    \5\ 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 a plan filed with 
and declared effective by the Commission is not 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.
    \6\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------

    The Exchange proposed to include in its MRVP the procedures and 
violations currently included in Exchange Rule 1014 (``Imposition of 
Fines for Minor Rule Violations'').\7\ According to the Exchange's 
proposed MRVP, under Exchange 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).\8\ 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, the payment shall be deemed to be a waiver of 
the 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 proceed 
under the rules governing formal disciplinary proceedings.
---------------------------------------------------------------------------

    \7\ 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).
    \8\ 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.
    Under the proposed MRVP, 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). According to the 
Exchange, Conduct and Decorum Policies under Rule 1014(d)(4) are 
excluded from the proposed MRVP. See Notice, supra note 3.
---------------------------------------------------------------------------

    Once the Exchange's MRVP is effective, 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

[[Page 61650]]

number of times the violation occurred, and the sanction imposed.\9\
---------------------------------------------------------------------------

    \9\ The Exchange attached a sample form of the quarterly report 
with its submission to the Commission.
---------------------------------------------------------------------------

    The Commission finds that the proposal is consistent with the 
public interest, the protection of investors, or otherwise in 
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2) 
under the Act,\10\ because the MRVP will permit the Exchange to carry 
out its oversight and enforcement responsibilities as an SRO more 
efficiently in cases where formal disciplinary proceedings are not 
necessary due to the minor nature of the particular violation.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------

    In declaring the Exchange's MRVP effective, the Commission does not 
minimize the importance of compliance with Exchange rules and all other 
rules subject to the imposition of sanctions under Exchange Rule 1014. 
Violation of an SRO's rules, as well as Commission rules, is a serious 
matter. However, Exchange Rule 1014 provides a reasonable means of 
addressing violations that do not rise to the level of requiring formal 
disciplinary proceedings, while providing greater flexibility in 
handling certain violations. The Commission expects the Exchange to 
continue to conduct surveillance and make determinations based on its 
findings, on a case-by-case basis, regarding whether a violation 
requires formal disciplinary action or whether a sanction under the 
MRVP is appropriate.
    It is therefore ordered, pursuant to Rule 19d-1(c)(2) under the 
Act,\11\ that the proposed MRVP for Miami International Securities 
Exchange, LLC, File No. 4-714, be, and hereby is, declared effective.
---------------------------------------------------------------------------

    \11\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2017-27989 Filed 12-27-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices 61649 Comments may be submitted by any of SECURITIES AND EXCHANGE 1014 (‘‘Imposition of Fines for Minor the following methods: COMMISSION Rule Violations’’).7 According to the Exchange’s proposed MRVP, under Electronic Comments [Release No. 34–82384; File No. 4–714] Exchange Rule 1014, the Exchange may • Use the Commission’s internet Self-Regulatory Organizations; Miami impose a fine (not to exceed $2,500) on comment form (http://www.sec.gov/ International Securities Exchange, any Member, or person associated with rules/sro.shtml); or LLC; Order Declaring Effective a Minor or employed by a Member, for any rule • Send an email to rule-comments@ Rule Violation Plan listed in Rule 1014(d).8 The Exchange sec.gov. Please include File Number SR– shall serve the person against whom a December 21, 2017. fine is imposed with a written statement CboeBZX–2017–016 on the subject line. On November 16, 2017, Miami setting forth the rule or rules violated, Paper Comments International Securities Exchange, LLC the act or omission constituting each (‘‘Exchange’’) filed with the Securities such violation, the fine imposed, and • Send paper comments in triplicate and Exchange Commission the date by which such determination to Secretary, Securities and Exchange (‘‘Commission’’) a proposed minor rule Commission, 100 F Street NE, becomes final or by which such violation plan (‘‘MRVP’’ or ‘‘Plan’’) determination must be contested. If the Washington, DC 20549–1090. pursuant to Section 19(d)(1) of the person against whom the fine is All submissions should refer to File Securities Exchange Act of 1934 imposed pays the fine, the payment Number SR–CboeBZX–2017–016. This (‘‘Act’’) 1 and Rule 19d–1(c)(2) shall be deemed to be a waiver of the file number should be included on the thereunder.2 The proposed MRVP was published for comment on November person’s right to a disciplinary subject line if email is used. To help the proceeding and any review of the matter Commission process and review your 28, 2017.3 The Commission received no comments on the proposal. This order under the Exchange rules. Any person comments more efficiently, please use against whom a fine is imposed may only one method. The Commission will declares the Exchange’s proposed MRVP effective. contest the Exchange’s determination by post all comments on the Commission’s filing with the Exchange a written internet website (http://www.sec.gov/ The Exchange’s MRVP specifies the rule violations which will be included answer, at which point the matter shall rules/sro.shtml). Copies of the proceed under the rules governing submission, all subsequent in the Plan and will have sanctions not exceeding $2,500. Any violations which formal disciplinary proceedings. amendments, all written statements with respect to the proposed rule are resolved under the MRVP would not Once the Exchange’s MRVP is change that are filed with the be subject to the provisions of Rule 19d– effective, the Exchange will provide to Commission, and all written 1(c)(1) of the Act,4 which requires that the Commission a quarterly report for communications relating to the a self-regulatory organization (‘‘SRO’’) any actions taken on minor rule proposed rule change between the promptly file notice with the violations under the MRVP. The Commission and any person, other than Commission of any final disciplinary quarterly report will include: The those that may be withheld from the action taken with respect to any person disposition date, the name of the firm/ public in accordance with the or organization.5 In accordance with individual, the Exchange’s internal provisions of 5 U.S.C. 552, will be Rule 19d–1(c)(2) under the Act,6 the enforcement number, the review period, available for website viewing and Exchange proposed to designate certain the nature of the violation type, the printing in the Commission’s Public specified rule violations as eligible for number of the rule that was violated, the Reference Room, 100 F Street NE, consideration as minor rule violations, Washington, DC 20549, on official and requested that it be relieved of the 7 The Exchange received its grant of registration business days between the hours of prompt reporting requirements on December 3, 2012, which included approving 10:00 a.m. and 3:00 p.m. Copies of the regarding such violations, provided it the rules that govern the Exchange. See Securities gives notice of the violations to the Exchange Act Release No. 68341 (December 3, filing also will be available for 2012), 77 FR 73065 (December 7, 2012). See also inspection and copying at the principal Commission on a quarterly basis. Securities Exchange Act Release No. 70357 office of the Exchange. All comments The Exchange proposed to include in (September 10, 2013), 78 FR 56960 (September 16, received will be posted without change. its MRVP the procedures and violations 2013) (Notice of Filing and Immediate Effectiveness currently included in Exchange Rule of a Proposed Rule Change to Amend Exchange Persons submitting comments are Rule 1014). cautioned that we do not redact or edit 1 15 8 While Rule 1014 allows the Exchange to U.S.C. 78s(d)(1) personal identifying information from 2 17 CFR 240.19d–1(c)(2). administer fines up to $5,000, the Exchange is only comment submissions. You should seeking relief from the reporting requirements of 3 See Securities Exchange Act Release No. 82145 paragraph (c)(1) of Rule 19d–1 for fines submit only information that you wish (November 22, 2017), 82 FR 56291 (‘‘Notice’’). administered under Rule 1014(d) that do not exceed to make available publicly. All 4 17 CFR 240.19d–1(c)(1). $2,500. submissions should refer to File 5 The Commission adopted amendments to Under the proposed MRVP, violations of the Number SR–CboeBZX–2017–016 and paragraph (c) of Rule 19d–1 to allow SROs to following rules would be appropriate for submit for Commission approval plans for the disposition under the MRVP: Rule 307 (Position should be submitted on or before abbreviated reporting of minor disciplinary Limits); Rule 803 (Focus Reports); Rule 804 January 18, 2018. infractions. See Securities Exchange Act Release (Requests for Trade Data); Rule 520 (Order Entry); No. 21013 (June 1, 1984), 49 FR 23828 (June 8, Rule 603 (Quotation Parameters); Rule 605 For the Commission, by the Division of 1984). Any disciplinary action taken by an SRO (Execution of Orders in Appointed Options); Rule Trading and Markets, pursuant to delegated against any person for violation of a rule of the SRO 314 (Mandatory Systems Testing); Rule 700 sradovich on DSK3GMQ082PROD with NOTICES authority.16 which has been designated as a minor rule violation (Exercise of Option Contracts); Rule 309 (Exercise Eduardo A. Aleman, pursuant to a plan filed with and declared effective Limits); Rule 310 (Reports Related to Position by the Commission is not considered ‘‘final’’ for Limits); Rule 403 (Trading in Restricted Classes); Assistant Secretary. purposes of Section 19(d)(1) of the Act if the Rule 604 (Market Maker Quotations); and Rules [FR Doc. 2017–28077 Filed 12–27–17; 8:45 am] sanction imposed consists of a fine not exceeding 1301, 1302, and 1303 (Failure to Timely File $2,500 and the sanctioned person has not sought an Amendments to Form U4, Form U5, and Form BD). BILLING CODE 8011–01–P adjudication, including a hearing, or otherwise According to the Exchange, Conduct and Decorum exhausted his administrative remedies. Policies under Rule 1014(d)(4) are excluded from 16 17 CFR 200.30–3(a)(12). 6 17 CFR 240.19d–1(c)(2). the proposed MRVP. See Notice, supra note 3. VerDate Sep<11>2014 18:14 Dec 27, 2017 Jkt 244001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1

61650 Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices number of times the violation occurred, ACTION: Notice. DEPARTMENT OF STATE and the sanction imposed.9 The Commission finds that the SUMMARY: This is a Notice of the [Public Notice 10244] proposal is consistent with the public Presidential declaration of a major interest, the protection of investors, or disaster for Public Assistance Only for Notice of Determinations: Culturally otherwise in furtherance of the purposes the State of New Mexico (FEMA–4352– Significant Objects Imported for of the Act, as required by Rule 19d– DR), dated 12/20/2017. Exhibition Determinations: ‘‘A Queen’s 1(c)(2) under the Act,10 because the Incident: Severe Storms and Flooding. Treasure at Versailles: Marie- MRVP will permit the Exchange to carry Incident Period: 10/04/2017 through Antoinette’s Japanese Lacquer’’ out its oversight and enforcement 10/06/2017. Exhibition responsibilities as an SRO more efficiently in cases where formal DATES: Issued on 12/20/2017. SUMMARY: Notice is hereby given of the disciplinary proceedings are not Physical Loan Application Deadline following determinations: I hereby necessary due to the minor nature of the Date: 02/19/2018. determine that certain objects to be particular violation. In declaring the Exchange’s MRVP Economic Injury (EIDL) Loan included in the exhibition ‘‘A Queen’s effective, the Commission does not Application Deadline Date: 09/20/2018. Treasure at Versailles: Marie- minimize the importance of compliance Antoinette’s Japanese Lacquer,’’ ADDRESSES: Submit completed loan imported from abroad for temporary with Exchange rules and all other rules applications to: U.S. Small Business subject to the imposition of sanctions exhibition within the United States, are Administration, Processing and of cultural significance. The objects are under Exchange Rule 1014. Violation of Disbursement Center, 14925 Kingsport an SRO’s rules, as well as Commission imported pursuant to a loan agreement Road, Fort Worth, TX 76155. rules, is a serious matter. However, with the foreign owner or custodian. I Exchange Rule 1014 provides a FOR FURTHER INFORMATION CONTACT: also determine that the exhibition or reasonable means of addressing Alan Escobar, Office of Disaster display of the exhibit objects at The J. violations that do not rise to the level of Assistance, U.S. Small Business Paul Getty Museum at the Getty Villa, requiring formal disciplinary Administration, 409 3rd Street SW, Malibu, California, from on or about proceedings, while providing greater Suite 6050, Washington, DC 20416, January 23, 2018, until on or about flexibility in handling certain violations. (202) 205–6734. January 6, 2019, and at possible The Commission expects the Exchange SUPPLEMENTARY INFORMATION: Notice is additional exhibitions or venues yet to to continue to conduct surveillance and hereby given that as a result of the be determined, is in the national make determinations based on its President’s major disaster declaration on interest. findings, on a case-by-case basis, 12/20/2017; Private Non-Profit regarding whether a violation requires organizations that provide essential FOR FURTHER INFORMATION CONTACT: formal disciplinary action or whether a services of a governmental nature may Elliot Chiu in the Office of the Legal sanction under the MRVP is file disaster loan applications at the Adviser, U.S. Department of State appropriate. address listed above or other locally (telephone: 202–632–6471; email: It is therefore ordered, pursuant to section2459@state.gov). The mailing announced locations. Rule 19d–1(c)(2) under the Act,11 that address is U.S. Department of State, the proposed MRVP for Miami The following areas have been determined to be adversely affected by L/PD, SA–5, Suite 5H03, Washington, International Securities Exchange, LLC, DC 20522–0505. File No. 4–714, be, and hereby is, the disaster: declared effective. Primary Counties: Pueblo of Acoma SUPPLEMENTARY INFORMATION: The For the Commission, by the Division of foregoing determinations were made The Interest Rates are: pursuant to the authority vested in me Trading and Markets, pursuant to delegated authority.12 Percent by the Act of October 19, 1965 (79 Stat. Brent J. Fields, 985; 22 U.S.C. 2459), E.O. 12047 of Secretary. For Physical Damage: March 27, 1978, the Foreign Affairs [FR Doc. 2017–27989 Filed 12–27–17; 8:45 am] Non-Profit Organizations With Reform and Restructuring Act of 1998 Credit Available Elsewhere ... 2.500 (112 Stat. 2681, et seq.; 22 U.S.C. 6501 BILLING CODE 8011–01–P Non-Profit Organizations With- note, et seq.), Delegation of Authority out Credit Available Else- where ..................................... 2.500 No. 234 of October 1, 1999, Delegation SMALL BUSINESS ADMINISTRATION For Economic Injury: of Authority No. 236–3 of August 28, Non-Profit Organizations With- 2000 (and, as appropriate, Delegation of [Disaster Declaration #15412 and #15413; out Credit Available Else- Authority No. 257–1 of December 11, NEW MEXICO Disaster Number NM–00052] where ..................................... 2.500 2015). I have ordered that Public Notice Presidential Declaration of a Major of these determinations be published in Disaster for Public Assistance Only for The number assigned to this disaster the Federal Register. the State of New Mexico for physical damage is 15412B and for Alyson Grunder, economic injury is 154130. AGENCY:U.S. Small Business Deputy Assistant Secretary for Policy, Bureau sradovich on DSK3GMQ082PROD with NOTICES Administration. (Catalog of Federal Domestic Assistance of Educational and Cultural Affairs, Number 59008) Department of State. 9 The Exchange attached a sample form of the Jerome Edwards, [FR Doc. 2017–28017 Filed 12–27–17; 8:45 am] quarterly report with its submission to the Acting Associate Administrator for Disaster BILLING CODE 4710–05–P Commission. 10 17 CFR 240.19d–1(c)(2). Assistance. 11 Id. [FR Doc. 2017–28099 Filed 12–27–17; 8:45 am] 12 17 CFR 200.30–3(a)(44). BILLING CODE 8025–01–P VerDate Sep<11>2014 18:14 Dec 27, 2017 Jkt 244001 PO 00000 Frm 00118 Fmt 4703 Sfmt 9990 E:\FR\FM\28DEN1.SGM 28DEN1


Document Created: 2017-12-28 00:44:01
Document Modified: 2017-12-28 00:44:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 61649 
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR