[Federal Register Volume 78, Number 230 (Friday, November 29, 2013)]
[Notices]
[Pages 71689-71690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28570]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70927; File No. 4-669]
Self-Regulatory Organizations; Topaz Exchange, LLC; Notice of
Filing of Proposed Minor Rule Violation Plan
November 22, 2013.
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 14, 2013, Topaz Exchange, LLC (d/b/a ISE Gemini)
(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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
The Exchange proposes to include in its MRVP the procedures and
violations currently included in Exchange Rule 1614 (``Imposition of
Fines for Minor Rule Violations''), which has been
[[Page 71690]]
incorporated by reference from the International Securities Exchange's
rule book.\6\ According to the Exchange's MRVP, under Rule 1614, 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 listed in
Rule 1614(d).\7\ 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, and the date by which such determination becomes
final or by which 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.
---------------------------------------------------------------------------
\6\ As noted above, the Exchange received its grant of
registration on July 26, 2013, which included approving the rules
that govern the Exchange.
\7\ While Rule 1614 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 1614(d) that do not exceed $2,500.
---------------------------------------------------------------------------
The Exchange proposes that, as set forth in Exchange Rule 1614(d),
violations of the following rules would be appropriate for disposition
under the MRVP: Rule 412 (Position Limits); Rule 415 (Reports Related
to Position Limits); Rule 1403 (Focus Reports); Rule 1404 (Requests for
Trade Data); Conduct and Decorum Policies; Rule 717 (Order Entry); Rule
803 (Quotation Parameters); Rule 805 (Execution of Orders in Appointed
Options); Rule 419 (Mandatory Systems Testing); and Rule 1100 (Exercise
of Options Contracts).
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 sanction imposed,
the number of times the rule violation occurred, and the date of the
disposition.
The Exchange also proposes that, 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 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. 4-669 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. 4-669. 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. 4-669 and should be submitted on
or before December 20, 2013.
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 20, 2013, 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. 4-669, 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.
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-28570 Filed 11-27-13; 8:45 am]
BILLING CODE 8011-01-P