Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Order Declaring Effective a Minor Rule Violation Plan, 61649-61650 [2017-27989]

Download as PDF Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–82384; File No. 4–714] • Use the Commission’s internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CboeBZX–2017–016 on the subject line. Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Order Declaring Effective a Minor Rule Violation Plan Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. sradovich on DSK3GMQ082PROD with NOTICES All submissions should refer to File Number SR–CboeBZX–2017–016. 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 website (http://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 website 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 filing 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 Number SR–CboeBZX–2017–016 and should be submitted on or before January 18, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–28077 Filed 12–27–17; 8:45 am] BILLING CODE 8011–01–P 16 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:14 Dec 27, 2017 Jkt 244001 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. 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. The Exchange proposed to include in its MRVP the procedures and violations currently included in Exchange Rule 1 15 U.S.C. 78s(d)(1) CFR 240.19d–1(c)(2). 3 See Securities Exchange Act Release No. 82145 (November 22, 2017), 82 FR 56291 (‘‘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 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). 2 17 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 61649 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. 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 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. E:\FR\FM\28DEN1.SGM 28DEN1 61650 Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices number of times the violation occurred, and the sanction imposed.9 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. 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Brent J. Fields, Secretary. [FR Doc. 2017–27989 Filed 12–27–17; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #15412 and #15413; NEW MEXICO Disaster Number NM–00052] sradovich on DSK3GMQ082PROD with NOTICES Presidential Declaration of a Major Disaster for Public Assistance Only for the State of New Mexico U.S. Small Business Administration. AGENCY: 9 The Exchange attached a sample form of the quarterly report with its submission to the Commission. 10 17 CFR 240.19d–1(c)(2). 11 Id. 12 17 CFR 200.30–3(a)(44). VerDate Sep<11>2014 18:14 Dec 27, 2017 Jkt 244001 ACTION: Notice. DEPARTMENT OF STATE This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of New Mexico (FEMA–4352– DR), dated 12/20/2017. Incident: Severe Storms and Flooding. Incident Period: 10/04/2017 through 10/06/2017. SUMMARY: Issued on 12/20/2017. Physical Loan Application Deadline Date: 02/19/2018. Economic Injury (EIDL) Loan Application Deadline Date: 09/20/2018. DATES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Alan Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. Notice is hereby given that as a result of the President’s major disaster declaration on 12/20/2017; Private Non-Profit organizations that provide essential services of a governmental nature may file disaster loan applications at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: SUPPLEMENTARY INFORMATION: Notice of Determinations: Culturally Significant Objects Imported for Exhibition Determinations: ‘‘A Queen’s Treasure at Versailles: MarieAntoinette’s Japanese Lacquer’’ Exhibition Notice is hereby given of the following determinations: I hereby determine that certain objects to be included in the exhibition ‘‘A Queen’s Treasure at Versailles: MarieAntoinette’s Japanese Lacquer,’’ imported from abroad for temporary exhibition within the United States, are of cultural significance. The objects are imported pursuant to a loan agreement with the foreign owner or custodian. I also determine that the exhibition or display of the exhibit objects at The J. Paul Getty Museum at the Getty Villa, Malibu, California, from on or about January 23, 2018, until on or about January 6, 2019, and at possible additional exhibitions or venues yet to be determined, is in the national interest. SUMMARY: FOR FURTHER INFORMATION CONTACT: Elliot Chiu in the Office of the Legal Adviser, U.S. Department of State (telephone: 202–632–6471; email: section2459@state.gov). The mailing address is U.S. Department of State, L/PD, SA–5, Suite 5H03, Washington, DC 20522–0505. The foregoing determinations were made pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), E.O. 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, et seq.; 22 U.S.C. 6501 note, et seq.), Delegation of Authority No. 234 of October 1, 1999, Delegation of Authority No. 236–3 of August 28, 2000 (and, as appropriate, Delegation of Authority No. 257–1 of December 11, 2015). I have ordered that Public Notice of these determinations be published in the Federal Register. SUPPLEMENTARY INFORMATION: Primary Counties: Pueblo of Acoma The Interest Rates are: Percent For Physical Damage: Non-Profit Organizations With Credit Available Elsewhere ... Non-Profit Organizations Without Credit Available Elsewhere ..................................... For Economic Injury: Non-Profit Organizations Without Credit Available Elsewhere ..................................... [Public Notice 10244] 2.500 2.500 2.500 The number assigned to this disaster for physical damage is 15412B and for economic injury is 154130. (Catalog of Federal Domestic Assistance Number 59008) Jerome Edwards, Acting Associate Administrator for Disaster Assistance. Alyson Grunder, Deputy Assistant Secretary for Policy, Bureau of Educational and Cultural Affairs, Department of State. [FR Doc. 2017–28017 Filed 12–27–17; 8:45 am] BILLING CODE 4710–05–P [FR Doc. 2017–28099 Filed 12–27–17; 8:45 am] BILLING CODE 8025–01–P PO 00000 Frm 00118 Fmt 4703 Sfmt 9990 E:\FR\FM\28DEN1.SGM 28DEN1

Agencies

[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Notices]
[Pages 61649-61650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27989]


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