Self-Regulatory Organizations; Investors Exchange LLC; Order Declaring Effective a Minor Rule Violation Plan, 52717-52718 [2016-18794]

Download as PDF Federal Register / Vol. 81, No. 153 / Tuesday, August 9, 2016 / Notices For the Nuclear Regulatory Commission. Robert G. Schaaf, Senior Project Manager, Plant Licensing Branch II–2, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. 2016–18841 Filed 8–8–16; 8:45 am] BILLING CODE 7590–01–P POSTAL REGULATORY COMMISSION [Docket No. CP2016–250] New Postal Products Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is noticing a recent Postal Service filing for the Commission’s consideration concerning a negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: August 11, 2016. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: SUMMARY: Table of Contents asabaliauskas on DSK3SPTVN1PROD with NOTICES I. Introduction II. Docketed Proceeding(s) I. Introduction The Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to negotiated service agreement(s). The request(s) may propose the addition or removal of a negotiated service agreement from the market dominant or the competitive product list, or the modification of an existing product currently appearing on the market dominant or the competitive product list. Section II identifies the docket number(s) associated with each Postal Service request, the title of each Postal Service request, the request’s acceptance date, and the authority cited by the Postal Service for each request. For each request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 VerDate Sep<11>2014 20:00 Aug 08, 2016 Jkt 238001 (Public Representative). Section II also establishes comment deadline(s) pertaining to each request. The public portions of the Postal Service’s request(s) can be accessed via the Commission’s Web site (https:// www.prc.gov). Non-public portions of the Postal Service’s request(s), if any, can be accessed through compliance with the requirements of 39 CFR 3007.40. The Commission invites comments on whether the Postal Service’s request(s) in the captioned docket(s) are consistent with the policies of title 39. For request(s) that the Postal Service states concern market dominant product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3622, 39 U.S.C. 3642, 39 CFR part 3010, and 39 CFR part 3020, subpart B. For request(s) that the Postal Service states concern competitive product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3015, and 39 CFR part 3020, subpart B. Comment deadline(s) for each request appear in section II. II. Docketed Proceeding(s) 1. Docket No(s).: CP2016–250; Filing Title: Notice of United States Postal Service of Filing a Functionally Equivalent Global Expedited Package Services 3 Negotiated Service Agreement and Application for NonPublic Treatment of Materials Filed Under Seal; Filing Acceptance Date: August 3, 2016; Filing Authority: 39 CFR 3015.5; Public Representative: Curtis E. Kidd; Comments Due: August 11, 2016. This Notice will be published in the Federal Register. Ruth Ann Abrams, Acting Secretary. [FR Doc. 2016–18843 Filed 8–8–16; 8:45 am] BILLING CODE 7710–FW–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78474; File No. 4–701] Self-Regulatory Organizations; Investors Exchange LLC; Order Declaring Effective a Minor Rule Violation Plan August 3, 2016. On July 11, 2016, Investors Exchange LLC (‘‘IEX’’ or ‘‘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 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 52717 of 1934 (‘‘Act’’) 1 and Rule 19d–1(c)(2) thereunder.2 The proposed MRVP was published for public comment on July 18, 2016.3 The Commission received no comments on the proposal. This order declares the Exchange’s proposed MRVP effective. 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 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. The Exchange proposed to include in its MRVP the procedures included in Exchange Rule 9.216(b) (‘‘Procedure for Violation Under Plan Pursuant to Exchange Act Rule 19d–1(c)(2)’’) and the violations to be included in Exchange Rule 9.218 (‘‘Violations Appropriate for Disposition Under Plan Pursuant to Exchange Act Rule 19d– 1(c)(2)’’).7 According to the Exchange’s 1 15 U.S.C. 78s(d)(1). CFR 240.19d–1(c)(2). 3 See Securities Exchange Act Release No. 78300 (July 12, 2016), 81 FR 46730 (‘‘Notice’’). 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 such 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). 7 The Exchange received its grant of registration on June 17, 2016, which included approving the rules that govern the Exchange. See Securities Exchange Act Release No. 78101 (June 17, 2016), 81 FR 41141 (June 23, 2016) (File No. 10–222). Under the proposed MRVP, violations of the following rules would be appropriate for disposition under the MRVP: Rule 2.160(p)— Continuing Education Requirements; Rule 4.511 (General Requirements related to books and records requirements); Rule 4.540 (Furnishing of records); Rule 5.110 (Supervision); Rule 8.220 (Automated submission of trading data requested); Rule 2 17 E:\FR\FM\09AUN1.SGM Continued 09AUN1 52718 Federal Register / Vol. 81, No. 153 / Tuesday, August 9, 2016 / Notices asabaliauskas on DSK3SPTVN1PROD with NOTICES proposed MRVP, under Rule 9.216(b), the Exchange may impose a fine (not to exceed $2,500) and/or a censure on any Member or associated person with respect to any rule listed in IEX Rule 9.218. If the Financial Industry Regulatory Authority Department of Enforcement or the Department of Market Regulation, on behalf of the Exchange, has reason to believe a violation has occurred and if the Member or associated person does not dispute the violation, the Department of Enforcement or the Department of Market Regulation may prepare and request that the Member or associated person execute a minor rule violation plan letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive the Member’s or associated person’s right to a hearing before a Hearing Panel or, if applicable, an Extended Hearing Panel, and any right of appeal to the IEX Appeals Committee, the Board, the Commission, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter must describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed. Unless the letter states otherwise, the effective date of any sanction imposed will be a date to be determined by IEX Regulation staff. In the event the letter is not accepted by the Member or associated person, or is rejected by the Office of Disciplinary Affairs, the matter can proceed in accordance with the Exchange’s disciplinary rules, which include hearing rights for formal disciplinary proceedings.8 Once IEX’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 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 occurred, and the date of the disposition.9 11.151(a)(1) (Market Maker two-sided quotation requirement); Rule 11.290 (Short sales); Rule 11.310 (Locking or crossing quotations in NMS stocks); and Rule 11.420 (Order audit trail system requirements). See Notice, supra note 3. When IEX’s MRVP is declared effective, IEX will file a proposed rule change to amend Rule 9.218 to specify the violations to be included in the MRVP. 8 See, Notice, supra note 3. 9 The Exchange attached a sample form of the quarterly report with its submission to the Commission. VerDate Sep<11>2014 20:00 Aug 08, 2016 Jkt 238001 The Commission finds that the proposal is consistent with the public interest, the protection of investors, and 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 full disciplinary proceedings are not necessary due to the minor nature of the particular violation. In declaring the Exchange’s MRVP effective, the Commission in no way minimizes the importance of compliance with Exchange rules and all other rules subject to the imposition of sanctions under Exchange Rule 9.216(b). The Commission believes that the violation of an SRO’s rules, as well as Commission rules, is a serious matter. However, Exchange Rule 9.216(b) 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 that the Exchange will continue to conduct surveillance and make determinations based on its findings, on a case-by-case basis, regarding whether a sanction under the MRVP is appropriate, or whether a violation requires formal disciplinary action. IT IS THEREFORE ORDERED, pursuant to Rule 19d–1(c)(2) under the Act,11 that the proposed MRVP for Investors Exchange LLC, File No. 4–701, be, and hereby is, declared effective. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Robert W. Errett, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78472; File No. SR– BatsEDGX–2016–35] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.21, Retail Orders, To Conform to the Rules of Bats BZX Exchange, Inc. and Bats BYX Exchange, Inc. August 3, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on July 22, 2016, Bats EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6)(iii) thereunder,4 which renders it effective upon filing with the Commission. 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 Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rule11.21, Retail Orders, to conform to the rules of Bats BZX Exchange, Inc. (‘‘BZX’’) and Bats BYX Exchange, Inc. (‘‘BYX’’).5 The text of the proposed rule change is available at the Exchange’s Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. [FR Doc. 2016–18794 Filed 8–8–16; 8:45 am] 1 15 BILLING CODE 8011–01–P U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6)(iii). 5 See BYX Rule 11.24 and BZX Rule 11.25. See Securities Exchange Act Release Nos. 68303 (November 27, 2012), 77 FR 71652 (December 3, 2012) (SR–BYX–2012–019); 72730 (July 31, 2014), 79 FR 45857 (August 6, 2014) (SR–BYX–2014–013); 73236 (September 26, 2014) 79 FR 59541 (October 2, 2014) (SR–BYX–2014–024); 76207 (October 21, 2015), 80 FR 65824 (October 27, 2015) (SR–BYX– 2015–45); 73237 (September 26, 2014), 79 FR 59537 (October 2, 2014) (SR–BATS–2014–043); 73677 (November 24, 2014), 79 FR 71150 (December 1, 2014) (SR–BATS–2014–058); and 76205 (October 21, 2015), 80 FR 65828 (October 27, 2015) (SR– BATS–2015–90). The Exchange does not proposes to adopt paragraphs (e), (f), (g) and (h) of BYX Rule 11.24 concerning the BYX Retail Price Improvement Program. These paragraph are also not included in BZX Rule 11.25. 2 17 10 17 CFR 240.19d–1(c)(2). 11 Id. 12 17 PO 00000 CFR 200.30–3(a)(44). Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 81, Number 153 (Tuesday, August 9, 2016)]
[Notices]
[Pages 52717-52718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18794]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78474; File No. 4-701]


Self-Regulatory Organizations; Investors Exchange LLC; Order 
Declaring Effective a Minor Rule Violation Plan

August 3, 2016.
    On July 11, 2016, Investors Exchange LLC (``IEX'' or ``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 
public comment on July 18, 2016.\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. 78300 (July 12, 
2016), 81 FR 46730 (``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 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.
---------------------------------------------------------------------------

    \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 such 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 
included in Exchange Rule 9.216(b) (``Procedure for Violation Under 
Plan Pursuant to Exchange Act Rule 19d-1(c)(2)'') and the violations to 
be included in Exchange Rule 9.218 (``Violations Appropriate for 
Disposition Under Plan Pursuant to Exchange Act Rule 19d-1(c)(2)'').\7\ 
According to the Exchange's

[[Page 52718]]

proposed MRVP, under Rule 9.216(b), the Exchange may impose a fine (not 
to exceed $2,500) and/or a censure on any Member or associated person 
with respect to any rule listed in IEX Rule 9.218. If the Financial 
Industry Regulatory Authority Department of Enforcement or the 
Department of Market Regulation, on behalf of the Exchange, has reason 
to believe a violation has occurred and if the Member or associated 
person does not dispute the violation, the Department of Enforcement or 
the Department of Market Regulation may prepare and request that the 
Member or associated person execute a minor rule violation plan letter 
accepting a finding of violation, consenting to the imposition of 
sanctions, and agreeing to waive the Member's or associated person's 
right to a hearing before a Hearing Panel or, if applicable, an 
Extended Hearing Panel, and any right of appeal to the IEX Appeals 
Committee, the Board, the Commission, and the courts, or to otherwise 
challenge the validity of the letter, if the letter is accepted. The 
letter must describe the act or practice engaged in or omitted, the 
rule, regulation, or statutory provision violated, and the sanction or 
sanctions to be imposed. Unless the letter states otherwise, the 
effective date of any sanction imposed will be a date to be determined 
by IEX Regulation staff. In the event the letter is not accepted by the 
Member or associated person, or is rejected by the Office of 
Disciplinary Affairs, the matter can proceed in accordance with the 
Exchange's disciplinary rules, which include hearing rights for formal 
disciplinary proceedings.\8\
---------------------------------------------------------------------------

    \7\ The Exchange received its grant of registration on June 17, 
2016, which included approving the rules that govern the Exchange. 
See Securities Exchange Act Release No. 78101 (June 17, 2016), 81 FR 
41141 (June 23, 2016) (File No. 10-222).
    Under the proposed MRVP, violations of the following rules would 
be appropriate for disposition under the MRVP: Rule 2.160(p)--
Continuing Education Requirements; Rule 4.511 (General Requirements 
related to books and records requirements); Rule 4.540 (Furnishing 
of records); Rule 5.110 (Supervision); Rule 8.220 (Automated 
submission of trading data requested); Rule 11.151(a)(1) (Market 
Maker two-sided quotation requirement); Rule 11.290 (Short sales); 
Rule 11.310 (Locking or crossing quotations in NMS stocks); and Rule 
11.420 (Order audit trail system requirements). See Notice, supra 
note 3. When IEX's MRVP is declared effective, IEX will file a 
proposed rule change to amend Rule 9.218 to specify the violations 
to be included in the MRVP.
    \8\ See, Notice, supra note 3.
---------------------------------------------------------------------------

    Once IEX'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 
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 occurred, and the date of the disposition.\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, and 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 full 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 in no 
way minimizes the importance of compliance with Exchange rules and all 
other rules subject to the imposition of sanctions under Exchange Rule 
9.216(b). The Commission believes that the violation of an SRO's rules, 
as well as Commission rules, is a serious matter. However, Exchange 
Rule 9.216(b) 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 that the Exchange will continue to conduct 
surveillance and make determinations based on its findings, on a case-
by-case basis, regarding whether a sanction under the MRVP is 
appropriate, or whether a violation requires formal disciplinary 
action.
    IT IS THEREFORE ORDERED, pursuant to Rule 19d-1(c)(2) under the 
Act,\11\ that the proposed MRVP for Investors Exchange LLC, File No. 4-
701, be, and hereby is, declared effective.
---------------------------------------------------------------------------

    \11\ Id.
    \12\ 17 CFR 200.30-3(a)(44).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-18794 Filed 8-8-16; 8:45 am]
 BILLING CODE 8011-01-P

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