[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 83067-83068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23660]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101283; File No. 4-844]


Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of 
Filing of Proposed Minor Rule Violation Plan

October 8, 2024.
    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 1, 2024, MIAX Sapphire, LLC (``Sapphire'' 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-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.
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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.
    \5\ 17 CFR 240.19d-1(c)(2).
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    The Exchange proposes to include in its MRVP the procedures and 
violations currently included in Exchange Rule 1014 (``Imposition of 
Fines for Minor Rule Violations'').\6\ According to the Exchange's 
proposed MRVP, under Rule 1014, 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 violation listed in Rule 1014(d).\7\ The 
Exchange shall serve the person against whom a fine is imposed with a 
written statement setting forth the rule or rules allegedly violated, 
the act or omission constituting each such violation, the fine imposed 
for each violation, and the date by which such determination becomes 
final or by which such determination must be paid or 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.
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    \6\ The Exchange received its grant of registration on July 15, 
2024, which included approving the rules that govern the Exchange.
    \7\ While Rule 1014 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 1014(d) that do not exceed $2,500.
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    The Exchange proposes that, as set forth in Exchange Rule 1014(d), 
violations of the following rules would be appropriate for disposition 
under the MRVP: Rule 307 (Position Limits); Rule 803 (Focus Reports); 
Rule 804 (Requests for Trade Data); Rule 520 (Order Entry); Rule 605 
(Execution of Orders in Appointed Options); Rule 314 (Mandatory Systems 
Testing); Rule 700 (Exercise of Option Contracts); Rule 309 (Exercise 
Limits); Rule 310 (Reports Related to Position Limits); Rule 403 
(Trading in Restricted Classes); Rule 605 (Market Maker Quotations); 
Rule 1904 (Failure to Timely File Amendments to Form U4, Form U5, and 
Form BD); and Rules 1701-1713 (Failure to Comply with the Consolidated 
Audit Trail Compliance Rule Under Chapter XVII). The Exchange states 
that it is specifically excluding Rule 1014(d)(4), Conduct and Decorum 
Policies, from this filing.
    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 disposition date, the name of the firm/
individual, the Exchange's internal enforcement number, the review 
period, the nature of the violation type, the number of the rule that 
was violated, the number of instances the violation occurred, and the 
sanction imposed.
    Based on compliance with the above, the Exchange requests that the 
rule violations designated in Rule 1014(d) 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 (https://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#057770696028666a6868606b7176457660662b626a73"><span class="__cf_email__" data-cfemail="3d4f485158105e5250505853494e7d4e585e135a524b">[email protected]</span></a>. Please include 
File No. 4-844 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. 4-844. 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 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 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

[[Page 83068]]

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. 4-844 and should be submitted on or before 
November 5, 2024.

II. Date of Effectiveness of 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 November 5, 2024, 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. 4-844, 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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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-23660 Filed 10-11-24; 8:45 am]
BILLING CODE 8011-01-P


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