Notice2025-13577
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing of Proposed Minor Rule Violation Plan
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 21, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 137 (Monday, July 21, 2025)</title>
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[Federal Register Volume 90, Number 137 (Monday, July 21, 2025)]
[Notices]
[Pages 34324-34325]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13577]
[[Page 34324]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103477; File No. 4-861]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing of Proposed Minor Rule Violation Plan
July 16, 2025.
Pursuant to Section 19(d)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19d-l(c)(2) thereunder,\2\ notice is hereby
given that on July 8, 2025, 24X National Exchange LLC (``24X'' 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-l(c)(2) under
the Act, 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-l 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.
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The Exchange proposes to include in its MRVP the procedures
included in Exchange Rule 8.15 (``Imposition of Fines for Minor
Violation(s) of Rules'') and the violations included in Rule 8.15.01
(``List of Exchange Rule Violations and Recommended Fine Schedule
Pursuant to Rule 8.15'').\5\ According to the Exchange's proposed MRVP,
under Rule 8.15(a), the Exchange may impose a fine (not to exceed
$2,500) on any Member, associated person of a Member, or registered or
non-registered employee of a Member, for any violation of a Rule of the
Exchange which violation the Exchange shall have determined is minor in
nature, as set forth in Rule 8.15.01. The Exchange may aggregate
similar violations generally if the conduct was unintentional, there
was no injury to public investors, or the violations resulted from a
single systemic problem or cause that has been corrected. In any action
taken by the Exchange pursuant to Rule 8.15, the person against whom a
fine is imposed shall be served with a written statement, signed by an
authorized officer of the Exchange, setting forth (i) the Rule or Rules
alleged to have been violated; (ii) the act or omission constituting
each such violation; (iii) the fine imposed for each such violation;
and (iv) the date by which such determination becomes final and such
fine becomes due and payable to the Exchange. Pursuant to paragraph (c)
of Rule 8.15, if the person against whom a fine is imposed pursuant to
Rule 8.15 pays such fine, that payment shall be deemed to be a waiver
by such person of such person's right to a disciplinary proceeding
under Rules 8.1 through 8.13 and any review of the matter by the
Appeals Committee or by the Board. Any person against whom a fine is
imposed pursuant to Rule 8.15 may contest such a finding pursuant to
paragraph (d) of Rule 8.15 by filing with the Exchange not later than
the date by which such determination must be contested (such date to be
not less than 15 business days after the date of service of the written
statement by the Exchange) a written response meeting the requirements
provided in Rule 8.5 at which point the matter shall become a
disciplinary proceeding subject to the provisions of Rules 8.1 through
8.13.
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\5\ The Exchange received its grant of registration on November
27, 2024, which included approving the rules that govern the
Exchange.
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The Exchange proposes that, as set forth in Exchange Rule 8.15.01,
violations of the following rules would be appropriate for disposition
under the MRVP: Rule 4.2 and Interpretations thereunder (requiring the
submission of responses to Exchange requests for trading data within
specified time period); Rule 11.9(a)(5) (requirement to identify short
sale orders as such); Rule 11.9(f) (requirement to comply with locked
and crossed market rules); Rule 3.5 (Advertising Practices); Rule 12.11
Interpretations and Policy .01 and Exchange Act Rule 604 (failure to
properly display limit orders); 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 11.20(a)(1) (requirement for Market Makers to
maintain continuous two-sided quotations); and Rules 4.5 through 4.16
(Consolidated Audit Trail Compliance Rules).
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 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 fine imposed, the
number of times the rule violation occurred, and the date of the
disposition.
Based on compliance with the above, the Exchange requests that the
rule violations designated in Exchange Rule 8.15.01 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
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#ea989f868fc7898587878f849e99aa998f89c48d859c"><span class="__cf_email__" data-cfemail="82f0f7eee7afe1edefefe7ecf6f1c2f1e7e1ace5edf4">[email protected]</span></a>. Please include
File No. 4-861 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. 4-861. 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
[[Page 34325]]
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 to File No. 4-861 and should be submitted on or before
August 11, 2025.
II. Date of Effectiveness of the Proposed Minor Rule Violation Plan and
Timing for Commission Action
Pursuant to Section 19(d)(l) of the Act and Rule 19d-l(c)(2)
thereunder,\6\ after August 11, 2025, 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. 4-861, 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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\6\ 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.\7\
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\7\ 17 CFR 200.30-3(a)(44).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-13577 Filed 7-18-25; 8:45 am]
BILLING CODE 8011-01-P
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