Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving Proposed Rule Change To Amend Exchange Rules Related to the Imposition of Fines for Minor Rule Violations, 14520-14521 [E8-5351]
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Federal Register / Vol. 73, No. 53 / Tuesday, March 18, 2008 / Notices
application process and how to
complete the revised Form NMA.8
FINRA has filed the proposed rule
change for immediate effectiveness. The
effective date will be the date of filing,
February 29, 2008. FINRA will
announce the implementation date in a
Regulatory Notice to be published no
later than 30 days following the
effective date.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,9 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. The proposed rule
change amends NASD Rule 1013 to
require that an applicant file a
membership application directly with
the Department instead of with a
particular district office and revises the
online Form NMA to make it more
interactive. The proposed rule change
does not propose any new or additional
content requirements for member
applications. The proposed rule change
also eliminates the requirement to pay
the membership application fee with a
physical check. FINRA believes that the
proposed rule change is consistent with
the provisions of Section 15A(b)(6) as it
will ensure a more streamlined and
efficient membership application
process.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
mstockstill on PROD1PC66 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(i) of the Act 10 and
8 FINRA will also provide advance notice through
the Regulatory Notice process (or similar guidance)
of any systems changes to the electronic application
process that would alter the manner in which
applicants interact with the electronic filing system.
9 15 U.S.C. 78o–3(b)(6).
10 15 U.S.C. 78s(b)(3)(A)(i).
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Rule 19b–4(f)(1) 11 thereunder, because
it constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
the principal office of FINRA. 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
Number SR–FINRA–2008–008 and
should be submitted on or before April
8, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5418 Filed 3–17–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–FINRA–2008–008 on the subject
line.
[Release No. 34–57468; File No. SR–ISE–
2008–09]
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2008–008. This file
number should be included on the
subject line if e-mail 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change 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 inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m..
Copies of such filing also will be
available for inspection and copying at
March 11, 2008.
1117
PO 00000
CFR 240.19b–4(f)(1).
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Self-Regulatory Organizations;
International Securities Exchange,
LLC; Order Approving Proposed Rule
Change To Amend Exchange Rules
Related to the Imposition of Fines for
Minor Rule Violations
On January 18, 2008, the International
Securities Exchange, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend ISE Rule 1614, ‘‘Imposition of
Fines for Minor Rule Violations,’’ to add
summary fines for violations of ISE Rule
1100, ‘‘Exercise of Options Contracts.’’
The proposed rule change was
published for comment in the Federal
Register on February 5, 2008.3 The
Commission received no comments
regarding the proposal. This order
approves the proposed rule change.
The Exchange proposes to add a
summary fine schedule pursuant to its
Minor Rule Violation Plan (‘‘MRVP’’)
that will apply to any member who fails
to submit to the Exchange in a timely
manner pursuant to ISE Rule 1100 (or a
regulatory information circular issued
pursuant to ISE Rule 1100) an ‘‘Advice
Cancel’’ or exercise instruction relating
to the exercise or nonexercise of a
noncash-settled equity option. The
Exchange believes that imposing the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 57229
(January 29, 2008), 73 FR 6753.
1 15
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Federal Register / Vol. 73, No. 53 / Tuesday, March 18, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
fine levels specified with respect to both
individual members and member
organizations, and providing for a
rolling 24-month surveillance period,
will serve as an effective deterrent to
such violative conduct.4
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.5 In particular, the
Commission believes that the proposal
is consistent with Section 6(b)(5) of the
Act,6 which requires that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
facilitate transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Commission further
believes that ISE’s proposal to impose
sanctions on individuals and member
organizations who fail to submit Advice
Cancel or exercise instructions in a
timely manner is consistent with
Sections 6(b)(1) and 6(b)(6) of the Act,7
which require that the rules of an
exchange enforce compliance with, and
provide appropriate discipline for,
violations of Commission and Exchange
rules. In addition, 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,8 which
governs minor rule violation plans. The
Commission believes that the proposed
rule change should strengthen the
Exchange’s ability to carry out its
oversight and enforcement
responsibilities as an SRO in cases
where full disciplinary proceedings are
unsuitable in view of the minor nature
of the particular violation.
In approving this proposed rule
change, the Commission in no way
4 In addition, as a member of the Intermarket
Surveillance Group, the Exchange, as well as
certain other self-regulatory organizations (‘‘SROs’’)
executed and filed on October 29, 2007 with the
Commission, a final version of an Agreement
pursuant to Section 17(d) of the Act (the ‘‘17d–2
Agreement’’). As set forth in the 17d–2 Agreement,
the SROs have agreed that their respective rules
concerning the filing of Expiring Exercise
Declarations, also referred to as Contrary Exercise
Advices, of options contracts, are common rules. As
a result, the proposal to amend ISE’s MRVP will
result in further consistency in sanctions among the
SROs that are signatories to the 17d–2 Agreement
concerning Contrary Exercise Advice violations.
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78f(b)(1) and 78f(b)(6).
8 17 CFR 240.19d–1(c)(2).
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minimizes the importance of
compliance with ISE rules and all other
rules subject to the imposition of fines
under the MRVP. The Commission
believes that the violation of any SRO
rules, as well as Commission rules, is a
serious matter. However, the MRVP
provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that ISE would continue to
conduct surveillance with due diligence
and make a determination based on its
findings, on a case-by-case basis,
whether a fine of more or less than the
recommended amount is appropriate for
a violation under the ISE MRVP or
whether a violation requires formal
disciplinary action.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 9 and Rule
19d–1(c)(2) under the Act,10 that the
proposed rule change (SR–ISE–2008–09)
be, and hereby is, approved and
declared effective.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5351 Filed 3–17–08; 8:45 am]
BILLING CODE 8011–01–P
14521
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57478; File Nos. SR–
NASDAQ–2007–004 and SR–NASDAQ–
2007–080]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Amendment No. 2 to a
Proposed Rule Change and Order
Granting Accelerated Approval to a
Proposed Rule Change, as Amended,
To Establish Rules Governing the
Trading of Options on the NASDAQ
Options Market; Order Approving a
Proposed Rule Change Relating to the
LLC Agreement Establishing the
NASDAQ Options Market LLC and
Delegation Agreement Delegating to
NOM LLC the Authority To Operate the
NASDAQ Options Market; Order
Granting an Application of The
NASDAQ Stock Market LLC for an
Exemption Pursuant to Section 36(a) of
the Exchange Act from the
Requirements of Section 19(b) of the
Exchange Act; and Order Granting an
Exemption for the NASDAQ Options
Market LLC from Section 11A(b) of the
Exchange Act
March 12, 2008.
I. Introduction
On January 30, 2007, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change
(‘‘Trading Rules Proposal’’) to adopt
rules governing participation in and
trading on The NASDAQ Options
Market (‘‘NOM’’), which will be an
options exchange facility of Nasdaq
operated by The Nasdaq Options Market
LLC (‘‘NOM LLC’’). The proposed rule
change, as modified by Amendment No.
1, was published for comment in the
Federal Register on May 1, 2007.3 The
Commission received five comment
letters regarding the proposed rule
change.4 Nasdaq responded to the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 55667
(April 25, 2007), 72 FR 23869 (‘‘Trading Rules
Proposal Notice’’).
4 See letters to Nancy M. Morris, Secretary,
Commission, from Stephen Schuler, Managing
Member, Global Electronic Trading Company
(‘‘GETCO’’), and Daniel Tierney, Managing Member,
GETCO, dated July 20, 2007 (‘‘GETCO Letter’’);
Michael J. Simon, Secretary, The International
Securities Exchange, LLC (‘‘ISE’’), dated June 15,
2007 (‘‘ISE Letter’’); John C. Nagel, Director and
Associate General Counsel, Citadel Investment
2 17
9 15
U.S.C. 78s(b)(2).
CFR 240.19d–1(c)(2).
11 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(44).
10 17
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]]>Agencies
[Federal Register Volume 73, Number 53 (Tuesday, March 18, 2008)]
[Notices]
[Pages 14520-14521]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5351]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57468; File No. SR-ISE-2008-09]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Order Approving Proposed Rule Change To Amend Exchange Rules
Related to the Imposition of Fines for Minor Rule Violations
March 11, 2008.
On January 18, 2008, the International Securities Exchange, LLC
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend ISE Rule 1614,
``Imposition of Fines for Minor Rule Violations,'' to add summary fines
for violations of ISE Rule 1100, ``Exercise of Options Contracts.'' The
proposed rule change was published for comment in the Federal Register
on February 5, 2008.\3\ The Commission received no comments regarding
the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 57229 (January 29,
2008), 73 FR 6753.
---------------------------------------------------------------------------
The Exchange proposes to add a summary fine schedule pursuant to
its Minor Rule Violation Plan (``MRVP'') that will apply to any member
who fails to submit to the Exchange in a timely manner pursuant to ISE
Rule 1100 (or a regulatory information circular issued pursuant to ISE
Rule 1100) an ``Advice Cancel'' or exercise instruction relating to the
exercise or nonexercise of a noncash-settled equity option. The
Exchange believes that imposing the
[[Page 14521]]
fine levels specified with respect to both individual members and
member organizations, and providing for a rolling 24-month surveillance
period, will serve as an effective deterrent to such violative
conduct.\4\
---------------------------------------------------------------------------
\4\ In addition, as a member of the Intermarket Surveillance
Group, the Exchange, as well as certain other self-regulatory
organizations (``SROs'') executed and filed on October 29, 2007 with
the Commission, a final version of an Agreement pursuant to Section
17(d) of the Act (the ``17d-2 Agreement''). As set forth in the 17d-
2 Agreement, the SROs have agreed that their respective rules
concerning the filing of Expiring Exercise Declarations, also
referred to as Contrary Exercise Advices, of options contracts, are
common rules. As a result, the proposal to amend ISE's MRVP will
result in further consistency in sanctions among the SROs that are
signatories to the 17d-2 Agreement concerning Contrary Exercise
Advice violations.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\5\ In
particular, the Commission believes that the proposal is consistent
with Section 6(b)(5) of the Act,\6\ which requires that the rules of an
exchange be designed to promote just and equitable principles of trade,
to facilitate transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The Commission further believes that ISE's proposal to impose sanctions
on individuals and member organizations who fail to submit Advice
Cancel or exercise instructions in a timely manner is consistent with
Sections 6(b)(1) and 6(b)(6) of the Act,\7\ which require that the
rules of an exchange enforce compliance with, and provide appropriate
discipline for, violations of Commission and Exchange rules. In
addition, 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,\8\ which governs minor rule violation plans. The
Commission believes that the proposed rule change should strengthen the
Exchange's ability to carry out its oversight and enforcement
responsibilities as an SRO in cases where full disciplinary proceedings
are unsuitable in view of the minor nature of the particular violation.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
\8\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------
In approving this proposed rule change, the Commission in no way
minimizes the importance of compliance with ISE rules and all other
rules subject to the imposition of fines under the MRVP. The Commission
believes that the violation of any SRO rules, as well as Commission
rules, is a serious matter. However, the MRVP provides a reasonable
means of addressing rule violations that do not rise to the level of
requiring formal disciplinary proceedings, while providing greater
flexibility in handling certain violations. The Commission expects that
ISE would continue to conduct surveillance with due diligence and make
a determination based on its findings, on a case-by-case basis, whether
a fine of more or less than the recommended amount is appropriate for a
violation under the ISE MRVP or whether a violation requires formal
disciplinary action.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\9\ and Rule 19d-1(c)(2) under the Act,\10\ that the proposed rule
change (SR-ISE-2008-09) be, and hereby is, approved and declared
effective.
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\9\ 15 U.S.C. 78s(b)(2).
\10\ 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-5351 Filed 3-17-08; 8:45 am]
BILLING CODE 8011-01-P
