Notice2024-28255
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing of Proposed Minor Rule Violation Plan
Primary source
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Published
December 3, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 232 (Tuesday, December 3, 2024)</title>
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[Federal Register Volume 89, Number 232 (Tuesday, December 3, 2024)]
[Notices]
[Pages 95833-95834]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28255]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101759; File No. 4-845]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing of Proposed Minor Rule Violation Plan
November 26, 2024.
Pursuant to Section 19(d)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19d-1(c)(2) thereunder,\2\ notice is hereby
given that on November 19, 2024, MIAX Emerald, LLC (``Emerald'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed minor rule violation plan (``MRVP'') 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 (``SRO'') promptly file notice with the
Commission of any final disciplinary action taken with respect to any
person or organization.\4\ In accordance with Rule 19d-1(c)(2) under
the Act,\5\ the Exchange proposes to designate certain specified rule
violations as minor rule violations, and requests 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.
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\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 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 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\ 17 CFR 240.19d-1(c)(2).
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The Exchange proposes to include in its MRVP the procedures and
violations currently included in Exchange Rule 1014 (``Imposition of
Fines for Minor Rule Violations'').\6\ According to the Exchange's
proposed MRVP, under 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 violation listed in Rule 1014(d).\7\ The
Exchange shall serve the person against whom a fine is imposed with a
written statement setting forth the rule or rules allegedly violated,
the act or omission constituting each such violation, the fine imposed
for each violation, and the date by which such determination becomes
final or by which such determination must be paid or 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 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 become a disciplinary proceeding.
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\6\ The Exchange received its grant of registration on December
20, 2018, which included approving the rules that govern the
Exchange. The Exchange notes that certain chapters of the Exchange's
rules are incorporated by reference from the rules of the Exchange's
affiliate Miami International Securities Exchange, LLC (MIAX
Options). Specifically, Chapter X, DISCIPLINE, which contains Rule
1014, Imposition of Fines for Minor Rule Violations.
\7\ 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.
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The Exchange proposes that, as set forth in Exchange Rule 1014(d),
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); Rule 1904 (Failure to Timely File
Amendments to Form U4, Form U5, and Form BD); and Rules 1701-1713
(Failure to Comply with the Consolidated Audit Trail Compliance Rule
Under Chapter XVII). The Exchange states that it is specifically
excluding Rule 1014(d)(4), Conduct and Decorum Policies, from this
filing.
Upon the Commission's declaration of effectiveness of the MRVP, 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 number of instances the violation occurred, and the
sanction imposed.
Based on compliance with the above, the Exchange requests that the
rule violations designated in Rule 1014(d) be designated as minor rule
violations subject to a minor rule violation reporting plan and that
the Exchange be relieved of the current reporting requirements
regarding such violations. In addition, going forward, to the extent
that there are any changes to the rules applicable to the Exchange's
MRVP, the Exchange requests that the Commission deem such changes to be
modifications to the Exchange's MRVP.
I. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed MRVP
is consistent with the Act. Comments may be submitted by any of the
following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
Send an email to <a href="/cdn-cgi/l/email-protection#344641585119575b5959515a4047744751571a535b42"><span class="__cf_email__" data-cfemail="bac8cfd6df97d9d5d7d7dfd4cec9fac9dfd994ddd5cc">[email protected]</span></a>. Please include File No. 4-
845 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File No. 4-845. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed MRVP that are filed with the
Commission, and all written communications relating to the proposed
MRVP 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 a.m. and 3 p.m.
Copies of the proposed MRVP also will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer
[[Page 95834]]
to File No. 4-845 and should be submitted on or before December 24,
2024.
II. Date of Effectiveness of 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,\8\ after December 24, 2024, the Commission may, by order,
declare the Exchange's proposed MRVP 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 MRVP, File No. 4-845, 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 the Act.
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\8\ 15 U.S.C. 78s(d)(1); 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(44).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-28255 Filed 12-2-24; 8:45 am]
BILLING CODE 8011-01-P
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