Notice2026-08567
Self-Regulatory Organizations; Texas Stock 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
May 4, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 85 (Monday, May 4, 2026)</title>
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[Federal Register Volume 91, Number 85 (Monday, May 4, 2026)]
[Notices]
[Pages 24024-24025]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08567]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105335; File No. 4-897]
Self-Regulatory Organizations; Texas Stock Exchange LLC; Notice
of Filing of Proposed Minor Rule Violation Plan
April 29, 2026.
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 April 21, 2026, Texas Stock Exchange LLC (``TXSE'' 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 TXSE Rule 8.015 (``Imposition of Fines for Minor
Violation(s) of Rules'') and the violations included in TXSE Rule
8.015.01 (``List of Exchange Rule Violations and Recommended Fine
Schedule Pursuant to TXSE Rule 8.015'').\5\ According to the Exchange's
proposed MRVP, under TXSE Rule 8.015(a), the Exchange may, in lieu of
commencing a disciplinary proceeding as described in TXSE Rules 8.001
through 8.013, impose a fine on any Member (not to exceed $2,500),
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 TXSE Rule 8.015.01. 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 TXSE Rule 8.015, the person against whom a
fine is imposed shall be served with a written
[[Page 24025]]
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 TXSE Rule 8.015, if the person against
whom a fine is imposed pursuant to TXSE Rule 8.015 pays such fine, that
payment shall be deemed to be a waiver of such person's right to a
disciplinary proceeding under TXSE Rules 8.001 through 8.013 and any
review of the matter by the Appeals Committee or by the Exchange Board.
Any person against whom a fine is imposed pursuant to TXSE Rule 8.015
may contest such a finding pursuant to paragraph (d) of TXSE Rule 8.015
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 TXSE
Rule 8.005 at which point the matter shall become a disciplinary
proceeding subject to the provisions of TXSE Rules 8.001 through 8.013.
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\5\ The Exchange received its grant of registration on September
30, 2025, which included approving the rules that govern the
Exchange.
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The Exchange proposes that, as set forth in TXSE Rule 8.015.01,
violations of the following rules would be appropriate for disposition
under the MRVP: TXSE Rule 4.002 and Interpretations and Policies
thereunder (requiring the submission of responses to Exchange requests
for trading data within specified time periods); TXSE Rule 11.009(a)(5)
(requirement to identify short sale orders as such); TXSE Rule
11.009(f) (requirement to comply with locked and crossed market rules);
TXSE Rule 3.005 (relating to communications with the public); TXSE Rule
12.011 Interpretation and Policy .01 and Exchange Act Rule 604 (failure
to properly display limit orders); TXSE Rule 4.002 and Interpretations
and Policies thereunder (related to the requirement to furnish
Exchange-related order, market and transaction data, as well as
financial or regulatory records and information); TXSE Rule
11.018(a)(1) (requirement for Market Makers to maintain continuous two-
sided quotations); and TXSE Rules 4.005 through 4.015 (failure to
comply with the 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 TXSE 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#bac8cfd6df97d9d5d7d7dfd4cec9fac9dfd994ddd5cc"><span class="__cf_email__" data-cfemail="3644435a531b55595b5b535842457645535518515940">[email protected]</span></a>. Please include
file number File No. 4-897 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. 4-897. 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 proposed MRVP 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. 4-897 and should be submitted on or before May
22, 2026.
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 May 22, 2026, 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. 4-897, 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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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-08567 Filed 5-1-26; 8:45 am]
BILLING CODE 8011-01-P
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