1970 Federal Register / Vol. 89, No. 8 / Thursday, January 11, 2024 / Notices 

29 15 U.S.C. 78s(b)(3)(A). 

30 17 CFR 240.19b–4(f). 31 17 CFR 200.30–3(a)(12). 

1Public Law 114–74 Sec. 701, 129 Stat. 599–601 

(Nov. 2, 2015), codified at 28 U.S.C. 2461 note. 

2Public Law 101–410, 104 Stat. 890–892 (1990), 

codified at 28 U.S.C. 2461 note. 

3Public Law. 104–134, title III, section 

31001(s)(1), 110 Stat. 1321–373 (1996), codified at 

28 U.S.C. 2461 note. 

4See Release Nos. 33–7361, 34–37912, IA–1596, 

IC–22310, dated Nov. 1, 1996 (effective Dec. 9, 

1996), previously found at 17 CFR 201.1001 and 

Table I to Subpart E of Part 201; Release Nos. 33– 

7946, 34–43897, IA–1921, IC–24846, dated Jan. 31, 

2001 (effective Feb. 2, 2001), previously found at 17 

CFR 201.1002 and Table II to Subpart E of Part 201; 

Release Nos. 33–8530, 34–51136, IA–2348, IC– 

26748, dated Feb. 9, 2005 (effective Feb. 14, 2005), 

previously found at 17 CFR 201.1003 and Table III 

to Subpart E of Part 201; Release Nos. 33–9009, 34– 

59449, IA–2845, IC–28635, dated Feb. 25, 2009 

(effective Mar. 3, 2009), previously found at 17 CFR 

201.1004 and Table IV to Subpart E of Part 201; and 

Release Nos. 33–9387, 34–68994, IA–3557, IC– 

30408, dated Feb. 27, 2013 (effective Mar. 5, 2013), 

previously found at 17 CFR 201.1005 and Table V 

to Subpart E of Part 201. The penalty amounts 

contained in these releases have now been 

consolidated into Table I to 17 CFR 201.1001. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 29 and paragraph (f) of Rule 

19b–4 30 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. 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 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeEDGX–2024–002 on the subject 

line. 

Paper Comments 

• 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–CboeEDGX–2024–002. 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 (https://www.sec.gov/ 

rules/sro.shtml). 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–CboeEDGX–2024–002 and should be 

submitted on or before February 1, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Christina Z. Milnor, 

Assistant Secretary. 

[FR Doc. 2024–00385 Filed 1–10–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release Nos. 33–11263; 34–99276; IA– 

6521; IC–35085] 

Adjustments to Civil Monetary Penalty 

Amounts 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice of annual inflation 

adjustment of civil monetary penalties. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is 

publishing this notice (‘‘Notice’’) 

pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (‘‘2015 Act’’). This Act 

requires all agencies to annually adjust 

for inflation the civil monetary penalties 

that can be imposed under the statutes 

administered by the agency and publish 

the adjusted amounts in the Federal 

Register. This Notice sets forth the 

annual inflation adjustment of the 

maximum amount of civil monetary 

penalties (‘‘CMPs’’) administered by the 

Commission under the Securities Act of 

1933, the Securities Exchange Act of 

1934 (‘‘Exchange Act’’), the Investment 

Company Act of 1940, the Investment 

Advisers Act of 1940, and certain 

penalties under the Sarbanes-Oxley Act 

of 2002. These amounts are effective 

beginning on January 15, 2024, and will 

apply to all penalties imposed after that 

date for violations of the 

aforementioned statutes that occurred 

after November 2, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Stephen M. Ng, Senior Special Counsel, 

Office of the General Counsel, at (202) 

551–7957, or Hannah W. Riedel, Senior 

Counsel, Office of the General Counsel, 

at (202) 551–7918. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This Notice is being published 

pursuant to the 2015 Act,1 which 

amended the Federal Civil Penalties 

Inflation Adjustment Act of 1990 

(‘‘Inflation Adjustment Act’’).2 The 

Inflation Adjustment Act previously had 

been amended by the Debt Collection 

Improvement Act of 1996 (‘‘DCIA’’) 3 to 

require that each Federal agency adopt 

regulations at least once every four years 

that adjust for inflation the CMPs that 

can be imposed under the statutes 

administered by the agency. Pursuant to 

this requirement, the Commission 

previously adopted regulations in 1996, 

2001, 2005, 2009, and 2013 to adjust the 

maximum amount of the CMPs that 

could be imposed under the statutes the 

Commission administers.4

The 2015 Act replaces the inflation 

adjustment formula prescribed in the 

DCIA with a new formula for calculating 

the inflation-adjusted amount of CMPs. 

The 2015 Act requires that agencies use 

this new formula to re-calculate the 

inflation-adjusted amounts of the 

penalties they administer on an annual 

basis and publish these new amounts in 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 8 / Thursday, January 11, 2024 / Notices 1971 

5 28 U.S.C. 2461 note Sec. 4. 

6Release Nos. 33–10276; 34–79749; IA–4599; IC– 

32414 (effective Jan. 18, 2017). 

7Release Nos. 33–11021; 34–93925; IA–5938; IC– 

34466 (effective Jan. 15, 2022). 

8Release Nos. 33–11143; 34–96605; IA–6212; IC– 

34797) (effective Jan. 15, 2023). 

9 28 U.S.C. 2461 note Sec. 3(2). 

10 15 U.S.C. 7215(c)(4)(D). 

11The Commission may by order affirm, modify, 

remand, or set aside sanctions, including civil 

monetary penalties, imposed by the PCAOB. See 

section 107(c) of the Sarbanes-Oxley Act of 2002, 

15 U.S.C. 7217. The Commission may enforce such 

orders in Federal district court pursuant to section 

21(e) of the Exchange Act. As a result, penalties 

assessed by the PCAOB in its disciplinary 

proceedings are penalties ‘‘enforced’’ by the 

Commission for purposes of the Inflation 

Adjustment Act. See Adjustments to Civil Monetary 

Penalty Amounts, Release No. 33–8530 (Feb. 4, 

2005) [70 FR 7606 (Feb. 14, 2005)]. 

12 28 U.S.C. 2461 note Sec. 5. 

13Office of Management and Budget, 

Implementation of Penalty Inflation Adjustments 

for 2024, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(Dec. 19, 2023), available at https://

www.whitehouse.gov/wp-content/uploads/2023/12/ 

M-24-07-Implementation-of-Penalty-InflationAdjustments-for-2024.pdf. This multiplier 

represents the percentage increase between the Oct. 

2022 CPI–U and the Oct. 2023 CPI–U, plus 1. 

14 15 U.S.C. 78u–1(a)(3). 

the Federal Register by January 15 of 

each year.5 The Commission previously 

published the first annual adjustment 

required by the 2015 Act on January 6, 

2017 (‘‘2017 Adjustment’’).6 As part of 

the 2017 Adjustment, the Commission 

promulgated 17 CFR 201.1001(a) and 

Table I to § 201.1001, which lists the 

penalty amounts for all violations that 

occurred on or before November 2, 

2015. For violations occurring after 

November 2, 2015, § 201.1001(b) 

provides that the applicable penalty 

amounts will be adjusted annually 

based on the formula set forth in the 

2015 Act. Section 201.1001(b) further 

provides that these adjusted amounts 

will be published in the Federal 

Register and on the Commission’s 

website. The Commission published the 

two most recent annual adjustments on 

January 6, 2022 (‘‘2022 Adjustment’’),7

and January 6, 2023 (‘‘2023 

Adjustment’’).8

A CMP is defined in relevant part as 

any penalty, fine, or other sanction that: 

(1) is for a specific amount, or has a 

maximum amount, as provided by 

Federal law; and (2) is assessed or 

enforced by an agency in an 

administrative proceeding or by a 

Federal court pursuant to Federal law.9

This definition applies to the monetary 

penalty provisions contained in four 

statutes administered by the 

Commission: the Securities Act, the 

Exchange Act, the Investment Company 

Act, and the Investment Advisers Act. 

In addition, the Sarbanes-Oxley Act 

provides the Public Company 

Accounting Oversight Board (‘‘PCAOB’’) 

authority to levy civil monetary 

penalties in its disciplinary proceedings 

pursuant to 15 U.S.C. 7215(c)(4)(D).10

The definition of a CMP in the Inflation 

Adjustment Act encompasses such civil 

monetary penalties.11

II. Adjusting the Commission’s Penalty 

Amounts for Inflation 

This Notice sets forth the annual 

inflation adjustment required by the 

2015 Act for all CMPs under the 

Securities Act, the Exchange Act, the 

Investment Company Act, and the 

Investment Advisers Act, and certain 

civil monetary penalties under the 

Sarbanes-Oxley Act. 

Pursuant to the 2015 Act, the penalty 

amounts in the 2024 Adjustment are 

adjusted for inflation by increasing them 

by the percentage change between the 

Consumer Price Index for all Urban 

Consumers (‘‘CPI–U’’) for October 2022 

and the October 2023 CPI–U.12 OMB has 

provided its calculation of this 

multiplier (‘‘CPI–U Multiplier’’) to 

agencies.13 The new penalty amounts 

are determined by multiplying the 

amounts in the 2024 Adjustment by the 

CPI–U Multiplier and then rounding to 

the nearest dollar. 

For example, the CMP for certain 

insider trading violations by controlling 

persons under Exchange Act section 

21A(a)(3) 14 was readjusted for inflation 

as part of the 2023 Adjustment to 

$2,479,282. To determine the new CMP 

under this provision, the Commission 

multiplies this amount by the CPI–U 

Multiplier of 1.03241, and rounds to the 

nearest dollar. Thus, the new CMP for 

Exchange Act section 21A(a)(3) is 

$2,559,636. 

Below is the Commission’s 

calculation of the new penalty amounts 

for the penalties it administers: 

U.S. Code citation Civil monetary penalty description 

2023 

Adjustment 

penalty 

amounts 

CPI–U 

Multiplier 

2024 

Adjusted 

penalty 

amounts 

15 U.S.C. 77h–1(g) (Securities Act Sec. 8A(g)) ................... For natural person ................................................................

For any other person ............................................................

$10,219 

102,193 

1.03241 

1.03241 

$10,550 

105,505 

For natural person/fraud ....................................................... 102,193 1.03241 105,505 

For any other person/fraud ................................................... 510,962 1.03241 527,522 

For natural person/fraud/substantial losses or risk of losses 

to others or gains to self.

204,385 1.03241 211,009 

For any other person/fraud/substantial losses or risk of 

losses to others or gain to self.

987,860 1.03241 1,019,877 

15 U.S.C. 77t(d) (Securities Act Sec. 20(d)) ......................... For natural person ................................................................ 11,162 1.03241 11,524 

For any other person ............................................................ 111,614 1.03241 115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 

For natural person/fraud/substantial losses or risk of losses 

to others.

For any other person/fraud/substantial losses or risk of 

losses to others.

223,229 

1,116,140 

1.03241 

1.03241 

230,464 

1,152,314 

15 U.S.C. 78u(d)(3) (Exchange Act Sec. 21(d)(3)) ............... For natural person ................................................................

For any other person ............................................................

11,162 

111,614 

1.03241 

1.03241 

11,524 

115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 

For natural person/fraud/substantial losses or risk of losses 

to others or gains to self.

223,229 1.03241 230,464 

For any other person/fraud/substantial losses or risk of 

losses to others or gain to self.

1,116,140 1.03241 1,152,314 

15 U.S.C. 78u–1(a)(3) (Exchange Act Sec. 21A(a)(3)) ........ Insider Trading—controlling person ...................................... 2,479,282 1.03241 2,559,636 

15 U.S.C. 78u–2 (Exchange Act Sec. 21B) .......................... For natural person ................................................................

For any other person ............................................................

11,162 

111,614 

1.03241 

1.03241 

11,524 

115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 


ddrumheller on DSK120RN23PROD with NOTICES1
1972 Federal Register / Vol. 89, No. 8 / Thursday, January 11, 2024 / Notices 

15The penalty amounts in this Notice are being 

published in the Federal Register and will not be 

added to the Code of Federal Regulations in 

accordance with the 2015 Act and 17 CFR 

201.1001(b). See 28 U.S.C. 2461 note Sec. 4(a)(2); 

17 CFR 201.1001(b). In addition to being published 

in the Federal Register, the penalty amounts in this 

Notice will be made available on the Commission’s 

website at https://www.sec.gov/enforce/civilpenalties-inflation-adjustments.htm, as detailed in 

17 CFR 201.1001(b). This website also lists the 

penalty amounts for violations that occurred on or 

before Nov. 2, 2015. 

16 17 CFR 201.1001(a). 

17See generally SBREFA, Public Law 104–121 

(1996). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

U.S. Code citation Civil monetary penalty description 

2023 

Adjustment 

penalty 

amounts 

CPI–U 

Multiplier 

2024 

Adjusted 

penalty 

amounts 

For natural person/fraud/substantial losses or risk of losses 

to others.

223,229 1.03241 230,464 

For any other person/fraud/substantial losses or risk of 

losses to others.

1,116,140 1.03241 1,152,314 

15 U.S.C. 78ff(b) (Exchange Act Sec. 32(b)) ....................... Exchange Act/failure to file information documents, reports 659 1.03241 680 

15 U.S.C. 78ff(c)(1)(B) (Exchange Act Sec. 32(c)(1)(B)) ..... Foreign Corrupt Practices—any issuer ................................. 24,793 1.03241 25,597 

15 U.S.C. 78ff(c)(2)(B) (Exchange Act Sec. 32(c)(2)(B)) ..... Foreign Corrupt Practices—any agent or stockholder acting 

on behalf of issuer.

24,793 1.03241 25,597 

15 U.S.C. 80a–9(d) (Investment Company Act Sec. 9(d)) ... For natural person ................................................................

For any other person ............................................................

11,162 

111,614 

1.03241 

1.03241 

11,524 

115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 

For natural person/fraud/substantial losses or risk of losses 

to others or gains to self.

223,229 1.03241 230,464 

For any other person/fraud/substantial losses or risk of 

losses to others or gain to self.

1,116,140 1.03241 1,152,314 

15 U.S.C. 80a–41(e) (Investment Company Act Sec. 42(e)) For natural person ................................................................

For any other person ............................................................

11,162 

111,614 

1.03241 

1.03241 

11,524 

115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 

For natural person/fraud/substantial losses or risk of losses 

to others.

223,229 1.03241 230,464 

For any other person/fraud/substantial losses or risk of 

losses to others.

1,116,140 1.03241 1,152,314 

15 U.S.C. 80b–3(i) (Investment Advisers Act Sec. 203(i)) ... For natural person ................................................................

For any other person ............................................................

11,162 

111,614 

1.03241 

1.03241 

11,524 

115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 

For natural person/fraud/substantial losses or risk of losses 

to others or gains to self.

223,229 1.03241 230,464 

For any other person/fraud/substantial losses or risk of 

losses to others or gain to self.

1,116,140 1.03241 1,152,314 

15 U.S.C. 80b–9(e) (Investment Advisers Act Sec. 209(e)) For natural person ................................................................

For any other person ............................................................

11,162 

111,614 

1.03241 

1.03241 

11,524 

115,231 

For natural person/fraud ....................................................... 111,614 1.03241 115,231 

For any other person/fraud ................................................... 558,071 1.03241 576,158 

For natural person/fraud/substantial losses or risk of losses 

to others.

223,229 1.03241 230,464 

For any other person/fraud/substantial losses or risk of 

losses to others.

1,116,140 1.03241 1,152,314 

15 U.S.C. 7215(c)(4)(D)(i) (Sarbanes-Oxley Act Sec. 

105(c)(4)(D)(i)).

For natural person ................................................................

For any other person ............................................................

164,373 

3,287,477 

1.03241 

1.03241 

169,700 

3,394,024 

15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes-Oxley Act Sec. 

105(c)(4)(D)(ii)).

For natural person ................................................................

For any other person ............................................................

1,232,803 

24,656,067 

1.03241 

1.03241 

1,272,758 

25,455,170 

Pursuant to the 2015 Act and 17 CFR 

201.1001, the adjusted penalty amounts 

in this Notice (and all penalty 

adjustments performed pursuant to the 

2015 Act) apply to penalties imposed 

after the date the adjustment is effective 

for violations that occurred after 

November 2, 2015, the 2015 Act’s 

enactment date. These penalty amounts 

supersede the amounts in the 2023 

Adjustment.15 For violations that 

occurred on or before November 2, 

2015, the penalty amounts in Table I to 

17 CFR 201.1001 continue to apply.16

III. Small Business Regulatory 

Enforcement Fairness Act Status 

The Office of Management and Budget 

(‘‘OMB’’) has concurred in our 

recommendation that this Notice is not 

a ‘‘major rule’’ as defined by section 251 

of the Small Business Regulatory 

Enforcement Fairness Act (‘‘SBREFA’’), 

5 U.S.C. 804(2), because (1) it will not 

have an annual effect of $100 million 

dollars or more on the economy, (2) it 

does not present a major increase in 

prices for consumers or individual 

industries, and (3) it does not have 

significant adverse effects on 

competition, investment, or 

innovation.17

By the Commission. 

Dated: January 5, 2024. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–00378 Filed 1–10–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99279; File No. SR– 

NYSEARCA–2023–37] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Withdrawal of a 

Proposed Rule Change To List and 

Trade Shares of the COtwo Advisors 

Physical European Carbon Allowance 

Trust Under NYSE Arca Rule 8.201–E 

January 5, 2024. 

On May 23, 2023, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares of the 

COtwo Advisors Physical European 

Carbon Allowance Trust under NYSE 

Arca Rule 8.201–E (Commodity-Based 


ddrumheller on DSK120RN23PROD with NOTICES1