Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing of Proposed Minor Rule Violation Plan, 15475-15476 [2010-6774]

Download as PDF Federal Register / Vol. 75, No. 59 / Monday, March 29, 2010 / Notices 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 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 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. 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 No. SR– NYSEAmex–2010–27 and should be submitted on or before April 19, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–6836 Filed 3–26–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61752; File No. 4–594] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing of Proposed Minor Rule Violation Plan cprice-sewell on DSK89S0YB1PROD with NOTICES March 22, 2010. 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 March 19, 2010, EDGX Exchange, Inc. (‘‘EDGX Exchange’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) copies of proposed minor rule violations 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 selfregulatory organization promptly file notice with the Commission of any final disciplinary action taken with respect to any person or organization.4 In 21 17 CFR 200.30–3(a)(12). 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 self-regulatory 1 15 VerDate Nov<24>2008 09:18 Apr 05, 2010 Jkt 220001 accordance with paragraph (c)(2) of Rule 19d–1 of the Act, the Exchange proposed to designate certain specified rule violations as minor rule violations, and requests that it be relieved of the reporting requirements regarding such violations, provided it gives notice of such violations to the Commission on a quarterly basis. EDGX Exchange proposes to include in its proposed MRVP the policies and procedures currently included in EDGX Exchange Rule 8.15 (‘‘Imposition of Fines for Minor Violation(s) of Rules’’).5 According to the Exchange’s proposed MRVP, under Rule 8.15, the Exchange may impose a fine (not to exceed $2,500) on a member or an associated person with respect to any rule listed in Rule 8.15.01. 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 EDGX Exchange rules. Any person against whom a fine is imposed may contest the Exchange’s determination by filing with the Exchange a written response, at which point the matter shall become a disciplinary proceeding. Under Rule 8.15.01, violations of the following rules would be appropriate for disposition under the minor rule violations plan: Rule 2.5. Interpretation .04, Firm Element Continuing Education Requirement; Rule 3.5 Advertising organizations (‘‘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 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 On March 12, 2010, the Commission approved EDGX Exchange’s application for registration as a national securities exchange, including the rules governing EDGX Exchange. See Securities Exchange Act Release No. 61698, 75 FR 13151 (March 18, 2010). In the approval order, the Commission noted that EDGX Exchange Rule 8.15 provides for the imposition of fines for minor rule violations pursuant to a minor rule violation plan. Accordingly, the Commission noted that as a condition to the operation of EDGX Exchange, the Exchange must file a minor rule violation plan with the Commission. PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 15475 Practices; Rule 4.2 and Interpretations thereunder, requiring the submission of responses to Exchange requests for trading data within specified time period; Rule 4.2 and Interpretations thereunder, related to the requirement to furnish Exchange-related order, market and transaction data, as well as financial or regulatory records and information; Rule 11.15, requirement to identify short sale orders as such; Rule 11.16, requirement to comply with locked and crossed market rules; and Rule 12.11, Interpretation .01 and Exchange Act Rule 604—Failure to properly display limit orders. EDGX Exchange proposed to include the rule violations listed in Rule 8.15.01 in its minor rule violation plan. Upon approval of the plan, the Exchange will provide the Commission a quarterly report of actions taken on minor rule violations under the plan. The quarterly report will include: The Exchange’s internal file number for the case, the name of the individual and/or organization, the nature of the violation, the specific rule provision violated, the sanction imposed, the number of times the rule violation has occurred, and the date of disposition.6 I. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning EDGX Exchange’s proposed Minor Rule Violation Plan, including whether the proposed plan is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/other.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. 4–594 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549. All submissions should refer to File No. 4–594. 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/other.shtml). 6 EDGX Exchange attached a sample form of the quarterly report with its submission to the Commisision. E:\FR\FM\29MRN1.SGM 29MRN1 15476 Federal Register / Vol. 75, No. 59 / Monday, March 29, 2010 / Notices Copies of the submission, all subsequent amendments, all written statements with respect to the proposed Minor Rule Violation Plan that are filed with the Commission, and all written communications relating to the proposed Minor Rule Violation Plan 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. 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 No. 4–594 and should be submitted on or before April 28, 2010. 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,7 after April 28, 2010, the Commission may, by order, declare EDGX Exchange’s proposed Minor Rule Violation Plan 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 Minor Rule Violation Plan, File No. 4–594, 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 this Act. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–6774 Filed 3–26–10; 8:45 am] cprice-sewell on DSK89S0YB1PROD with NOTICES BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61756; File No. SR–NYSE– 2010–24] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Rule 127 To Remove the Restrictions on the Execution of Block Cross Transactions Outside the Prevailing NYSE Quotation March 22, 2010. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that on March 11, 2010, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Rule 127 (‘‘Block Crosses Outside the Prevailing NYSE Quotation’’) to remove the restrictions on the execution of block cross transactions outside the prevailing NYSE quotation to make such execution more consistent with prevailing industry standard and to delete all references to ‘‘percentage orders’’ in the rule text. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and https:// www.nyse.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. 1 15 7 15 U.S.C. 78s(d)(1) and 17 CFR 240.19d–1(c)(2). 8 17 CFR 200.30–3(a)(44). VerDate Nov<24>2008 09:18 Apr 05, 2010 Jkt 220001 U.S.C.78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The New York Stock Exchange (‘‘NYSE’’ or the ‘‘Exchange’’) proposes to amend NYSE Rule 127 (‘‘Block Crosses Outside the Prevailing NYSE Quotation’’) to remove restrictions on the execution of block cross transactions outside the prevailing NYSE quotation to make such execution more consistent with prevailing industry standard and to delete all references to ‘‘percentage orders’’ in the rule text. The Exchange notes that parallel changes are proposed to be made to the rules of NYSE Amex LLC (formerly the American Stock Exchange).4 Background: NYSE Rule 127 governs the execution of block cross transactions outside the Exchange quotation. NYSE Rule 127 prescribes the method of block cross executions for member organizations when the member organization intends to represent both sides of the proposed cross as agent or will trade with one side of the cross in part or in whole as principal. The member organization handling the block orders must first trade with the displayed bid or offer (whichever is relevant to the proposed cross, i.e., whether the cross is to be executed at a price lower than the bid or higher than the offer) including any reserve interest 5 at that bid or offer price when the member organization is trading as principal on one side of the transaction and is establishing or increasing a proprietary position as a result. The member organization then executes, in a single transaction, at the agreed upon block price, all limit orders on the Display Book (‘‘Display Book’’) 6 priced at or better than the block clean-up price. The result is two separate tape prints. If, however, the cross represents agency interest only or the liquidation of a member organization’s position, the member organization must execute all orders on the Display Book priced better than the block clean-up price at a price one cent better than the clean-up price 4 See SR–NYSEAmex–2010–27. interest is that portion of a bid or offer that is designated as not to be displayed, i.e., is in ‘‘reserve.’’ 6 The Display Book system is an order management and execution facility. The Display Book receives and displays orders to the DMMs, contains order information and provides a mechanism to execute and report transactions and publish the results to the Consolidated Tape. The Display Book is connected to a number of other Exchange systems for the purposes of comparison, surveillance and reporting information to customers and other market data and national market systems. 5 Reserve E:\FR\FM\29MRN1.SGM 29MRN1

Agencies

[Federal Register Volume 75, Number 59 (Monday, March 29, 2010)]
[Notices]
[Pages 15475-15476]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-6774]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61752; File No. 4-594]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing of Proposed Minor Rule Violation Plan

March 22, 2010.
    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 March 19, 2010, EDGX Exchange, Inc. (``EDGX Exchange'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') copies of proposed minor rule violations 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 promptly file notice with the Commission of any 
final disciplinary action taken with respect to any person or 
organization.\4\ In accordance with paragraph (c)(2) of Rule 19d-1 of 
the Act, the Exchange proposed to designate certain specified rule 
violations as minor rule violations, and requests that it be relieved 
of the reporting requirements regarding such violations, provided it 
gives notice of such violations to the Commission on a quarterly basis. 
EDGX Exchange proposes to include in its proposed MRVP the policies and 
procedures currently included in EDGX Exchange Rule 8.15 (``Imposition 
of Fines for Minor Violation(s) of Rules'').\5\
---------------------------------------------------------------------------

    \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 self-regulatory organizations (``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 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\ On March 12, 2010, the Commission approved EDGX Exchange's 
application for registration as a national securities exchange, 
including the rules governing EDGX Exchange. See Securities Exchange 
Act Release No. 61698, 75 FR 13151 (March 18, 2010). In the approval 
order, the Commission noted that EDGX Exchange Rule 8.15 provides 
for the imposition of fines for minor rule violations pursuant to a 
minor rule violation plan. Accordingly, the Commission noted that as 
a condition to the operation of EDGX Exchange, the Exchange must 
file a minor rule violation plan with the Commission.
---------------------------------------------------------------------------

    According to the Exchange's proposed MRVP, under Rule 8.15, the 
Exchange may impose a fine (not to exceed $2,500) on a member or an 
associated person with respect to any rule listed in Rule 8.15.01. 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 EDGX Exchange rules. Any person against whom a fine is 
imposed may contest the Exchange's determination by filing with the 
Exchange a written response, at which point the matter shall become a 
disciplinary proceeding. Under Rule 8.15.01, violations of the 
following rules would be appropriate for disposition under the minor 
rule violations plan: Rule 2.5. Interpretation .04, Firm Element 
Continuing Education Requirement; Rule 3.5 Advertising Practices; Rule 
4.2 and Interpretations thereunder, requiring the submission of 
responses to Exchange requests for trading data within specified time 
period; Rule 4.2 and Interpretations thereunder, related to the 
requirement to furnish Exchange-related order, market and transaction 
data, as well as financial or regulatory records and information; Rule 
11.15, requirement to identify short sale orders as such; Rule 11.16, 
requirement to comply with locked and crossed market rules; and Rule 
12.11, Interpretation .01 and Exchange Act Rule 604--Failure to 
properly display limit orders.
    EDGX Exchange proposed to include the rule violations listed in 
Rule 8.15.01 in its minor rule violation plan. Upon approval of the 
plan, the Exchange will provide the Commission a quarterly report of 
actions taken on minor rule violations under the plan. The quarterly 
report will include: The Exchange's internal file number for the case, 
the name of the individual and/or organization, the nature of the 
violation, the specific rule provision violated, the sanction imposed, 
the number of times the rule violation has occurred, and the date of 
disposition.\6\
---------------------------------------------------------------------------

    \6\ EDGX Exchange attached a sample form of the quarterly report 
with its submission to the Commisision.
---------------------------------------------------------------------------

I. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning EDGX Exchange's proposed Minor Rule Violation 
Plan, including whether the proposed plan is consistent with the Act. 
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/other.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. 4-594 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549.

All submissions should refer to File No. 4-594. 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/other.shtml).

[[Page 15476]]

Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed Minor Rule Violation Plan that 
are filed with the Commission, and all written communications relating 
to the proposed Minor Rule Violation Plan 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. 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 No. 4-594 and should be submitted on or before 
April 28, 2010.

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,\7\ after April 28, 2010, the Commission may, by order, 
declare EDGX Exchange's proposed Minor Rule Violation Plan 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 Minor Rule Violation Plan, File No. 4-594, 
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 this Act.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(d)(1) and 17 CFR 240.19d-1(c)(2).
    \8\ 17 CFR 200.30-3(a)(44).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6774 Filed 3-26-10; 8:45 am]
BILLING CODE 8011-01-P
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