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Notice2025-02496

Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change To Amend Exchange Rule 1014, Imposition of Fines for Minor Rule Violations

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Published

February 12, 2025

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 90 Issue 28 (Wednesday, February 12, 2025)</title>
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[Federal Register Volume 90, Number 28 (Wednesday, February 12, 2025)]
[Notices]
[Pages 9441-9446]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-02496]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34-102370; File No. SR-SAPPHIRE-2025-05]

Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Order Granting Accelerated Approval of a Proposed Rule
Change To Amend Exchange Rule 1014, Imposition of Fines for Minor Rule
Violations

February 6, 2025
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 January 24, 2025, MIAX Sapphire, LLC (``MIAX Sapphire'' or
``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 Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons and approving the proposal on an
accelerated basis.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend proposes to amend Exchange Rule
1014, Imposition of Fines for Minor Rule Violations, to adopt new
paragraph (e)

[[Page 9442]]

to identify rule violations and sanctions that will be applicable to
the Trading Floor \3\ under the Exchange's Minor Rule Violation Plan
(``MRVP'').\4\
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\3\ The term ``Trading Floor'' or ``Floor'' means the physical
trading floor of the Exchange located in Miami, Florida. The Trading
Floor will consist of one ``Crowd Area'' or ``Pit'' where Floor
Participants will be located and option contracts will be traded.
The Crowd or Pit shall be marked with specific visible boundaries on
the Trading Floor, as determined by the Exchange. See Exchange Rule
100.
\4\ See Securities Exchange Act Release No. 101869 (December 10,
2024), 89 FR 101678 (December 16, 2024) (Order Declaring Effective a
Minor Rule Violation Plan).
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The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings</a>, at the Exchange's principal office, and at the
Commission's Public Reference Room.

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 Exchange 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 these statements may be examined at the places specified in
Item III below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend Exchange Rule 1014, Imposition of
Fines for Minor Rule Violations, to adopt rule violations and sanctions
that will be applicable to the Trading Floor under the Exchange's
proposed Minor Rule Violation Plan (``MRVP''). The Exchange proposes
these rules in conjunction with the recent approval of MIAX Sapphire as
a national securities exchange.\5\ Specifically, the proposed rule
change amends Exchange Rule 1014 to (i) modify the rule text of
paragraph (a) to add a reference to proposed paragraph (e); (ii) modify
the rule text of paragraph (d)(4) for clarity and precision; (iii)
amend the table in paragraph (d)(5) to make a minor non-substantive
technical correction; and (iv) adopt new paragraph (e) to add
violations that may occur on the Exchange's Trading Floor that the
Exchange believes to be minor in nature.
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\5\ See Securities Exchange Act Release No. 100539 (July 15,
2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order
approving application of MIAX Sapphire, LLC for registration as a
national securities exchange).
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Rule 1014 provides that in lieu of commencing a disciplinary
proceeding, the Exchange may, subject to the certain requirements set
forth in the Rule, impose a fine, not to exceed $5,000 on any Member
\6\ or person associated with or employed by a Member, with respect to
any Rule violation listed in paragraph (d) and proposed paragraph (e)
of this Rule. Any fine imposed pursuant to this Rule that (i) does not
exceed $2,500 and (ii) is not contested, shall be reported on a
periodic basis, except as may otherwise be required by Rule 19d-1 under
the Exchange Act or by any other regulatory authority. Further, the
Rule provides that any person against whom a fine is imposed under the
Rule shall be served with a written statement setting forth: (i) the
Rule(s) allegedly violated; (ii) the act or omission constituting each
such violation; (iii) the fine imposed for each violation; and (iv) the
date by which such determination becomes final and such fine must be
paid or contested, which date shall be not less than thirty (30)
calendar days after the date of service of such written statement.
Proposed paragraph (e) will set forth the list of specific Exchange
Rules under which a Member or person associated with or employed by a
Member may be subject to a fine for violations of such Rules and the
applicable fines that may be imposed by the Exchange. As with all
violations incorporated into its MRVP, the Exchange will proceed under
this Rule only for violations that are minor in nature. Any other
violation will be addressed pursuant to Rule 1003, Letters of Consent
or Rule 1004, Charges.
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\6\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of MIAX
Sapphire Rules for purposes of trading on the Exchange as an
``Electronic Exchange Member'' or ``Market Maker.'' See Exchange
Rule 100.
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Current Rule 1014(d) currently states, ``The Exchange's trading
conduct and decorum policies shall be distributed to Members
periodically and shall set forth the specific dollar amounts that may
be imposed as a fine hereunder with respect to any violations of those
policies.'' The Exchange now proposes to amend the text of the rule to
reflect the change proposed herein regarding trading conduct and
decorum fines. Specifically, the Exchange proposes to amend current
Rule 1014(d) to state, ``The Exchange's trading conduct and decorum
policies shall be distributed to Members periodically.'' Under proposed
Rule 1014(e)(4) the Exchange has proposed fine amounts for violations
of Exchange Rule 2080(b) through Rule 2080(d) and believes that trading
conduct and decorum is best addressed in new paragraph (e), which is
focused on violations of Trading Floor rules.
The Exchange also proposes to amend Rule 1014(d)(5) to make a
technical non-substantive correction to the table which describes
violations of Rule 520(b). Specifically, the column titled, ``Number of
Violations Within One Calendar Year,'' provides a numerical range of
violations which corresponds to the second column which provides the
associated sanction. For example, the first row provides that 1 to 5
violations will result in a sanction consisting of a Letter of Caution.
Similarly, the second row provides that 6 to 10 violations within one
calendar year will result in a sanction consisting of a fine in the
amount of $500. The Exchange now proposes to correct the fourth row in
the first column to state ``16 to 20'' whereas it currently incorrectly
states ``16 or 20.'' The Exchange believes this correction will provide
clarity and precision in the Exchange's rules and eliminate the
potential for confusion regarding violations of Exchange Rule 520(b).
The Exchange proposes to adopt new paragraph (e), Trading Floor
Violations Subject to Fines, to adopt rule violations and sanctions
applicable to the Trading Floor under the Exchange's Minor Rule
Violation Plan. The Exchange anticipates opening its physical trading
floor in Q2 of 2025 and proposes to adopt these rules in furtherance of
the Exchange's regulatory obligations as a self-regulatory
organization. The Exchange believes that the proposed fines for Trading
Floor violations are appropriate to deter Members from violating
requirements and restrictions which are necessary for the orderly
operation of a Trading Floor.
The Exchange proposes to adopt 1014(e)(1), General Responsibilities
of Floor Brokers \7\ pursuant to Exchange Rule 2025. Under this
proposed rule, a Floor Broker who, when handling an order, fails to use
due diligence to cause the order to be executed at the best price or
prices available to him in accordance with the Rules of the Exchange
shall be subject to the following fines:
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\7\ A Floor Broker is an individual who is registered with the
Exchange for the purpose, while on the Trading Floor, of accepting
and handling options orders. See Exchange Rule 2015.

[[Page 9443]]

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $1,000.
Second Offense............................. $2,500.
Third Offense.............................. $5,000.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt 1014(e)(2), Failure to
Properly Record Orders pursuant to Exchange Rule 2030(e). Under this
proposed rule, any Floor Participant \8\ who fails to comply with the
order format and system entry requirements on the Trading Floor shall
be subject to the following fines:
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\8\ The term ``Floor Participant'' means Floor Brokers as
defined in Rule 2015 and Floor Market Makers as defined in Rule
2105(b). See Exchange Rule 100.

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $500.
Second Offense............................. $1,000.
Third Offense.............................. $2,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt 1014(e)(3), Failure to
Properly Execute a Qualified Floor Order (QFO), pursuant to Exchange
Rule 2040. Under this proposed rule, any Floor Participant who fails to
properly execute a QFO shall be shall be subject to the following
fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $500.
Second Offense............................. $1,000.
Third Offense.............................. $2,000.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt 1014(e)(4), Trading Conduct
and Order & Decorum on the Trading Floor, pursuant to Rule 2080(b)-(d).
Under this proposed rule, violations of Rule 2080 related to Trading
Floor Conduct and Decorum shall be subject to the following fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $1,000.
Second Offense............................. $2,000.
Third Offense.............................. $3,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt 1014(e)(5), Discretionary
Transactions. Under this proposed rule, violations of Rule 2035
regarding Discretionary Transactions shall be subject to the following
fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $250.
Second Offense............................. $500.
Third Offense.............................. $1,000.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt 1014(e)(6), Floor Participant
Not Available to Reconcile an Uncompared Trade pursuant to Rule 2085.
Under this proposed rule, violations of Rule 2085 regarding the
resolution of uncompared trades shall be subject to the following
fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $500.
Second Offense............................. $1,000.
Third Offense.............................. $2,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

[[Page 9444]]

Next, the Exchange proposes to adopt Rule 1014(e)(7), Floor
Participant Communication and Equipment, pursuant to Rule 2070. Under
this proposed rule, violations of Rule 2070 regarding Floor Participant
Communications and Equipment shall be subject to the following fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $1,000.
Second Offense............................. $2,500.
Third Offense.............................. $3,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt Rule 1014(e)(8), Improper
Vocalization of a Trade, pursuant to Policy .09 of Rule 2040. Under
this proposed rule, violations of Policy .09 of Rule 2040 regarding the
requirements for public outcry shall be subject to the following fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $1,000.
Second Offense............................. $2,500.
Third Offense.............................. $3,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt Rule 1014(e)(9), Floor Market
Maker Failure to Comply with Quotation Requirements, pursuant to Rule
2105(c)(1). Under this proposed rule, violations of Rule 2105(c)(1)
regarding a Floor Market Maker's Open Outcry Quoting Obligations shall
be subject to the following fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $1,000.
Second Offense............................. $2,500.
Third Offense.............................. $3,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt Rule 1014(e)(10), Floor Market
Maker Quote Spread Parameters, pursuant to Rule 2105(d)(1). Under this
proposed rule, violations of Rule 2105(d)(1) regarding the legal bid/
ask differential requirements on the Trading Floor shall be subject to
the following fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $1,000.
Second Offense............................. $2,500.
Third Offense.............................. $3,500.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

Next, the Exchange proposes to adopt Rule 1014(e)(11), Floor Broker
Failure to Honor the Priority of Bids and Offers, pursuant to Rule
2045(d). Under this proposed rule, violations of Rule 2045(d) regarding
a Floor Broker's obligations in determining Time Priority Sequence
shall be subject to the following fines:

Finally, the Exchange proposes to adopt Rule 1014(e)(12), Floor
Broker Failure to Identify a Broker Dealer Order, pursuant to Policy
.02 of Rule 2040. Under this proposed rule, violations of Policy .02 of
Rule 2040 regarding a Floor Broker's responsibility to identify its
orders shall be subject to the following fines:

------------------------------------------------------------------------
Number of cumulative violations within any
twenty-four month rolling period Sanction
------------------------------------------------------------------------
First Offense.............................. $500.
Second Offense............................. $1,500.
Third Offense.............................. $3,000.
Fourth and Each Subsequent Offense......... Formal Disciplinary Action.
------------------------------------------------------------------------

[[Page 9445]]

The Exchange notes that the proposed violations listed above are
substantially similar to the Rules of BOX Options Exchange's Minor Rule
Violation Plan regarding violations and sanctions applicable to a
physical trading floor.\9\
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\9\ See BOX Options Exchange Rule 12140(e).
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2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\10\ Specifically, the Exchange believes that its proposed rule
change is consistent with Section 6(b)(5) \11\ requirements in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed changes to Rule 1014 are
consistent with and further the objectives of the Act. Additionally,
the Exchange believes that the proposal is consistent with Section
6(b)(6) of the Act \12\ which requires the rules of an exchange provide
that its members be appropriately disciplined for violations of the Act
as well as the rules and regulations thereunder, by imposing pre-set
fine amounts for breaches of order and decorum to reflect the severity
of the violation and provide an appropriate form of deterrence for
violations of Exchange Rules and the regulations thereunder. In
addition, because existing MIAX Sapphire Rule 1014 provides procedural
rights to a person fined under the Exchange's MRVP to contest the fine
and permits a hearing on the matter, the Exchange believes that the
proposal is consistent with Sections 6(b)(7) and 6(d)(1) of the
Act,\13\ because it provides a fair procedure for the disciplining of
Members and persons associated with Members. Further, the Exchange
believes that its proposal to make a technical non-substantive
correction to rule text benefits investors by providing clarity and
precision in the Exchange's rules.
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\12\ 15 U.S.C. 78f(b)(6).
\13\ 15 U.S.C. 78f(b)(7) and (d)(1).
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The Exchange believes that the proposed fines for Trading Floor
violations are appropriate to deter Members from violating requirements
and restrictions which are necessary for the orderly operation of a
Trading Floor. The fines should create further deterrents for certain
activity on the Trading Floor which disrupts the orderly operation of
the Trading Floor. Further, the minor rule plan assists the regulatory
staff in protecting its market to the benefit of the public. Finally,
the Exchange believes that the proposal is consistent with the public
interest, the protection of investors, and otherwise furthers the
purposes of the Act, because Rule 1014 strengthens the Exchange's
ability to carry out its oversight and enforcement responsibilities as
an SRO in cases where full disciplinary proceedings may be unsuitable
in view of the minor nature of the particular violation. Additionally,
these rules are based on those of a competing options exchange that
also has a trading floor.\14\
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\14\ See supra note 9.
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B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange notes that the rule changes being proposed are similar
to the rules of the BOX Options Exchange.\15\ Further, the proposal
relates to the Exchange's role and responsibilities as a self-
regulatory organization and the manner in which it disciplines its
Members and associated persons for violations of its Rules.
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\15\ See id.
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As such, the Exchange does not believe the proposal will impose any
burden on inter-market competition not necessary or appropriate in
furtherance of the purpose of the Act. Further, the Exchange does not
believe the proposal will impose any burden on intra-market
competition, as all similarly situated market participants will be
treated in the same manner under this proposal.

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.

III. 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:

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
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#d8aaadb4bdf5bbb7b5b5bdb6acab98abbdbbf6bfb7ae"><span class="__cf_email__" data-cfemail="295b5c454c044a4644444c475d5a695a4c4a074e465f">[email&#160;protected]</span></a>. Please include
file number SR-SAPPHIRE-2025-05 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 number SR-SAPPHIRE-2025-05. 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 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
a.m. and 3 p.m. Copies of the filing 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 to file number SR-SAPPHIRE-2025-05 and should
be submitted on or before March 5, 2025.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

The Commission finds that the proposed rule change is consistent
with

[[Page 9446]]

the requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\16\ In particular, the
Commission finds that the proposed rule change is consistent with
Section 6(b)(5) of the Act,\17\ which requires that the rules of an
exchange be designed to promote just and equitable principles of trade,
to remove impediments and to 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 also believes that
the proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act
\18\ which require that the rules of an exchange enforce compliance
with, and provide appropriate discipline for, violations of Commission
and Exchange rules. Finally, 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,\19\ which governs minor rule violation
plans.
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\16\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\17\ 15 U.S.C. 78f(b)(5).
\18\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
\19\ 17 CFR 240.19d-1(c)(2).
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As stated above, generally the Exchange proposes to amend Exchange
Rule 1014 to adopt rule violations and sanctions that will be
applicable to the Trading Floor, in conjunction with the recent
approval of MIAX Sapphire as a national securities exchange.
Specifically, the Exchange proposes to amend Rule 1014 in the following
ways: to (i) modify the rule text of paragraph (a) to add a reference
to proposed paragraph (e); (ii) modify the rule text of paragraph
(d)(4) for clarity and precision; (iii) amend the table in paragraph
(d)(5) to make a minor non-substantive technical correction; and (iv)
adopt new paragraph (e) to add violations that may occur on the
Exchange's Trading Floor that the Exchange believes to be minor in
nature.
The Commission believes that Rule 1014 is an effective way to
discipline a member for a minor violation of a rule. The Commission
finds that the Exchange's proposal to amend Rule 1014 to adopt rule
violations and sanctions that will be applicable to the Trading Floor,
is consistent with the Act because it may help the Exchange's ability
to better carry out its oversight and enforcement responsibilities. The
Commission also believes that the Exchange's proposal to make non-
substantive and technical changes is consistent with the Act because
such changes will add clarity and accuracy to the Exchange's rules.
In approving the propose rule change, the Commission in no way
minimizes the importance of compliance with the Exchange's rules and
all other rules subject to fines under Rule 1014. The Commission
believes that a violation of any self-regulatory organization's rules,
as well as Commission rules, is a serious matter. However, Rule 1014
provides a reasonable means of addressing rule violations that may 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 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 Rule 1014
or whether a violation requires formal disciplinary action.
For the same reasons discussed above, the Commission finds good
cause, pursuant to Section 19(b)(2) of the Act,\20\ for approving the
proposed rule change prior to the thirtieth day after the date of
publication of the notice of the filing thereof in the Federal
Register. The proposal will assist the Exchange in preventing
fraudulent and manipulative practices by allowing the Exchange to
adequately enforce compliance with, and provide appropriate discipline
for, violations of Exchange rules. Moreover, the proposed changes raise
no new or novel issues. Accordingly, the Commission believes that a
full notice-and-comment period is not necessary before approving the
proposal.
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\20\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\21\ and Rule 19d-1(c)(2) thereunder,\22\ that the proposed rule change
(SR-SAPPHIRE-2025-05) be, and hereby is, approved on an accelerated
basis.
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\21\ 15 U.S.C. 78s(b)(2).
\22\ 17 CFR 240.19d-1(c)(2).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-02496 Filed 2-11-25; 8:45 am]
BILLING CODE 8011-01-P

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