[Federal Register Volume 77, Number 219 (Tuesday, November 13, 2012)]
[Notices]
[Pages 67722-67723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27527]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68170; File No. 4-655]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing of Proposed Minor Rule Violation Plan
November 6, 2012.
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 October 15, 2012, BOX Options Exchange LLC (the
``Exchange''), filed with the Securities and Exchange Commission (the
``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, the Exchange proposed to designate certain specified rule
[[Page 67723]]
violations as minor rule violations, and requested 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.
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The Exchange proposes to include in its MRVP the procedures and
violations currently included in Exchange Rule 12140 (``Imposition of
Fines for Minor Rule Violations'').\5\
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\5\ On April 27, 2012, the Exchange's application for
registration as a national securities exchange, including the rules
governing the Exchange, was approved. See Securities Exchange Act
Release No. 66871 (April 27, 2012), 77 FR 26323 (May 3, 2012) (File
No. 10-206).
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According to the Exchange's proposed MRVP, under Rule 12140, the
Exchange may impose a fine (not to exceed $2,500) on a member or an
associated person with respect to any rule violation listed in Rule
12140(d). 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 for each such violation, and the date by which such fine
shall be paid, such determination becomes final or such determination
must be 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.
The Exchange proposes that, as set forth in Exchange Rule 12140(d),
violations of the following rules would be appropriate for disposition
under the MRVP: Rule 3120 (Position Limits); Rule 10030 (Focus
Reports); Rule 10040 (Requests for Trade Data); Rules 7110(a), 7150(d)-
(f), and 8050(a)-(d) (Order Entry); Rule 8040(a)(7) (Quotation
Parameters); Rule 8050(e) (Continuous Quotes); Rule 3180 (Mandatory
Systems Testing); Rules 2020, 2040, and 2050 related to failure to
timely file amendments to Form U4, Form U5, and Form BD; Rule 9000(c)-
(e), (g) and (h) (Contrary Exercise Advice); Rule 15020 (Locked and
Crossed Markets); Rule 8030(e) (Market Maker Assigned Activity); Rule
8050(c)(2)-(4) (Request for Quote); and Rule 15010(a) (Trade-
Through).\6\
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\6\ The Commission notes that the list of violations set forth
in this notice corrects certain rule reference errors that are
presently in Exchange Rule 12140. The Exchange has informed
Commission staff that it will submit a rule filing to correct such
errors.
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Upon approval of the plan, the Exchange will provide the Commission
a quarterly report of actions taken on minor rule violations under the
plan. The quarterly report will include, among other things: 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 sanction imposed, the number of
times the rule violation has occurred, and the date of disposition.\7\
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\7\ The Exchange attached a sample form of the quarterly report
with its submission to the Commission.
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I. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the Exchange's proposed MRVP, including whether
the proposed MRVP is consistent with the Act. Comments may be submitted
by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml ); or
Send an email to [email protected]. Please include
File No. 4-655 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. 4-655. 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 Web site (http://www.sec.gov/rules/sro.shtml).
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 Web site 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 proposed MRVP also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. 4-655 and should be submitted on
or before December 4, 2012.
II. Date of Effectiveness of the 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 4, 2012, 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. 4-655, 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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27527 Filed 11-9-12; 8:45 am]
BILLING CODE 8011-01-P