101674 Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices 

1This figure is based on the estimated 8,230 

operating companies that filed annual reports on 

Form 10–K, Form 20–F, or Form 40–F during the 

2023 calendar year, and the estimated 3,254 

investment companies that filed periodic reports on 

Form N–CEN during that same period. 

2This estimate is based on issuer-filings made 

with the Commission between January 1, 2021, and 

September 30, 2024, that include a reference to the 

issuer’s QLCC. 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange considers surveillance operations 

part of regulatory operations. The limitation on the 

use of regulatory funds also provides that they shall 

not be distributed. See Thirteenth Amended and 

Restated Operating Agreement of NYSE American 

LLC, Article IV, Section 4.05 and Securities 

Exchange Act Release No. 87993 (January 16, 2020), 

This information collection 

requirement was previously approved 

by OMB, but the approval expired on 

November 30, 2021. Accordingly, the 

Commission will request a 

reinstatement without change of OMB’s 

approval. 

The respondents to this collection of 

information are attorneys who appear 

and practice before the Commission 

and, in certain cases, the issuer, and/or 

officers, directors and committees of the 

issuer. We believe that, in providing 

quality representation to issuers, 

attorneys report evidence of violations 

to others within the issuer, including 

the Chief Legal Officer, the Chief 

Executive Officer, and, where necessary, 

the directors. In addition, officers and 

directors investigate evidence of 

violations and report within the issuer 

the results of the investigation and the 

remedial steps they have taken or 

sanctions they have imposed. Except as 

discussed below, we therefore believe 

that the reporting requirements imposed 

by the rule are ‘‘usual and customary’’ 

activities that do not add to the burden 

that would be imposed by the collection 

of information. 

Certain aspects of the collection of 

information, however, may impose a 

burden. For an issuer to establish a 

QLCC, the QLCC must adopt written 

procedures for the confidential receipt, 

retention, and consideration of any 

report of evidence of a material 

violation. We estimate for purposes of 

the PRA that there are approximately 

11,484 issuers that are subject to the 

rules.1 Of these, we estimate that 

approximately 346, which is 

approximately 3 percent, have 

established or will establish a QLCC.2

Establishing the written procedures 

required by the rule should not impose 

a significant burden. We assume that an 

issuer would incur a greater burden in 

the year that it first establishes the 

procedures than in subsequent years, in 

which the burden would be incurred in 

updating, reviewing, or modifying the 

procedures. For purposes of the PRA, 

we assume that an issuer would spend 

6 hours every three-year period on the 

procedures. This would result in an 

average burden of 2 hours per year. 

Thus, we estimate for purposes of the 

PRA that the total annual burden 

imposed by the collection of 

information would be 692 hours. 

Assuming half of the burden hours will 

be incurred by outside counsel at a rate 

of $700 per hour, the resulting cost 

would be $242,200. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study. An 

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information unless it 

displays a currently valid OMB control 

number. 

Written comments are requested on: 

(a) whether the collection of information 

is necessary for the proper performance 

of the functions of the Commission, 

including whether the information has 

practical utility; (b) the accuracy of the 

Commission’s estimate of the burden[s] 

of the collection of information; (c) ways 

to enhance the quality, utility, and 

clarity of the information collected; and 

(d) ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing by February 14, 2025. 

Please direct your written comments 

to: Austin Gerig, Director/Chief Data 

Officer, Securities and Exchange 

Commission, c/o Tanya Ruttenberg, 100 

F Street NE, Washington, DC 20549, or 

send an email to: PRA_Mailbox@

sec.gov. 

Dated: December 10, 2024. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29477 Filed 12–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101866; File No. SR– 

NYSEAMER–2024–63] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE 

American Options Fee Schedule 

Concerning the Options Regulatory 

Fee (ORF) 

December 10, 2024. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

November 25, 2024, NYSE American 

LLC (‘‘NYSE American’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’) regarding the Options 

Regulatory Fee (‘‘ORF’’). The proposed 

rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to (1) temporarily waive 

the ORF for the period December 1, 

2024 through December 31, 2024 (the 

‘‘Waiver Period’’), and (2) delete 

outdated language relating to a prior 

ORF waiver and superseded ORF rate. 

Background 

As a general matter, the Exchange 

may only use regulatory funds such as 

the ORF ‘‘to fund the legal, regulatory, 

and surveillance operations’’ of the 

Exchange.4 More specifically, the ORF 


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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices 101675 

85 FR 4050 (January 23, 2020) (SR–NYSEAMER– 

2020–04). 

5See Fee Schedule, Section VII.A., Options 

Regulatory Fee (‘‘ORF’’). The Exchange uses reports 

from OCC when assessing and collecting the ORF. 

The ORF is not assessed on outbound linkage 

trades. An ATP Holder is not assessed the fee until 

it has satisfied applicable technological 

requirements necessary to commence operations on 

NYSE American. See id. 

6The Exchange notes that many of the Exchange’s 

market surveillance programs require the Exchange 

to look at and evaluate activity across all options 

markets, such as surveillance for position limit 

violations, manipulation, front-running, and 

contrary exercise advice violations/expiring 

exercise declarations. The Exchange and other 

options SROs are parties to a 17d–2 agreement 

allocating among the SROs regulatory 

responsibilities relating to compliance by the 

common members with rules for expiring exercise 

declarations, position limits, OCC trade 

adjustments, and Large Option Position Report 

reviews. See, e.g., Securities Exchange Act Release 

No. 85097 (February 11, 2019), 84 FR 4871 

(February 19, 2019). 

7See Fee Schedule, supra note 5. 

8See https://www.nyse.com/trader-update/ 

history#110000945374. 

9See Securities Exchange Act Release No. 98678 

(October 3, 2023), 88 FR 69973 (October 10, 2023) 

(SR–NYSEAMER–2023–48) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Amend the NYSE American Options Fee 

Schedule To Modify the Options Regulatory Fee). 

The Exchange also previously filed to waive the 

ORF from October 1, 2023 through December 31, 

2023. See id. 

10The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. The volume discussed in 

this filing is based on a compilation of OCC data 

for monthly volume of equity-based options and 

monthly volume of ETF-based options, in contract 

sides. 

is designed to recover a material 

portion, but not all, of the Exchange’s 

costs for the supervision and regulation 

of ATP Holders, including the 

Exchange’s regulatory program and legal 

expenses associated with options 

regulation, such as the costs related to 

in-house staff, third-party service 

providers, and technology that facilitate 

regulatory functions such as 

surveillance, investigation, 

examinations, and enforcement 

(collectively, the ‘‘ORF Costs’’). ORF 

funds may also be used for indirect 

expenses such as human resources and 

other administrative costs. The 

Exchange monitors the amount of 

revenue collected from the ORF to 

ensure that this revenue, in combination 

with other regulatory fees and fines, 

does not exceed regulatory costs. 

The ORF is assessed on ATP Holders 

for options transactions that are cleared 

by the ATP Holder through the Options 

Clearing Corporation (‘‘OCC’’) in the 

Customer range regardless of the 

exchange on which the transaction 

occurs and is collected from ATP 

Holder clearing firms by the OCC on 

behalf of NYSE American.5 All options 

transactions must clear via a clearing 

firm and such clearing firms can then 

choose to pass through all, a portion, or 

none of the cost of the ORF to its 

customers, i.e., the entering firms. The 

Exchange notes that the costs relating to 

monitoring ATP Holders with respect to 

Customer trading activity are generally 

higher than the costs associated with 

monitoring ATP Holders that do not 

engage in Customer trading activity, 

which tends to be more automated and 

less labor-intensive. By contrast, 

regulating ATP Holders that engage in 

Customer trading activity is generally 

more labor intensive and requires a 

greater expenditure of human and 

technical resources as the Exchange 

needs to review not only the trading 

activity on behalf of Customers, but also 

the ATP Holder’s relationship with its 

Customers via more labor-intensive 

exam-based programs.6 As a result, the 

costs associated with administering the 

customer component of the Exchange’s 

overall regulatory program are 

materially higher than the costs 

associated with administering the noncustomer component (e.g., ATP Holder 

proprietary transactions) of its 

regulatory program. 

Because the ORF is based on options 

transactions volume, the amount of ORF 

collected is variable. For example, if 

options transactions reported to OCC in 

a given month increase, the ORF 

collected from ATP Holders will likely 

increase as well. Similarly, if options 

transactions reported to OCC in a given 

month decrease, the ORF collected from 

ATP Holders will likely decrease as 

well. Accordingly, the Exchange 

monitors the amount of ORF collected 

to ensure that it does not exceed [sic] 

the ORF Costs. If the Exchange 

determines the amount of ORF collected 

exceeds [sic] or may exceed [sic] ORF 

Costs, the Exchange will, as appropriate, 

adjust the ORF by submitting a fee 

change filing to the Securities and 

Exchange Commission (the 

‘‘Commission’’). Exchange rules 

establish that market participants must 

be notified of any change in the ORF via 

Trader Update at least 30 calendar days 

prior to the effective date of the change.7

Proposed Rule Change 

Based on the Exchange’s recent 

review of regulatory costs, ORF 

collections, and options transaction 

volume, the Exchange proposes to waive 

the ORF from December 1 through 

December 31, 2024 in order to help 

ensure that the amount collected from 

the ORF, in combination with other 

regulatory fees and fines, does not 

exceed the Exchange’s total regulatory 

costs. The Exchange proposes to resume 

assessing the ORF on January 1, 2025 at 

the current rate of $0.0038 per contract. 

The Exchange notified ATP Holders of 

the proposed change to the ORF via 

Trader Update on October 30, 2024 8

(which was at least 30 calendar days 

prior to the proposed operative date of 

the waiver, December 1, 2024) so that 

market participants have sufficient 

opportunity to configure their systems 

to account properly for the waiver of the 

ORF. 

The proposed waiver is based on the 

Exchange’s analysis of recent options 

volumes and its regulatory costs. The 

Exchange believes that, if the ORF is not 

adjusted, the ORF revenue to the 

Exchange year over year could exceed a 

material portion of the Exchange’s ORF 

Costs. The options industry has 

continued to experience very high 

options trading volumes and volatility, 

and although the Exchange recently 

reduced the ORF as of January 1, 2024,9

the persisting increased options 

volumes have impacted the Exchange’s 

ORF collection. 

The options industry has continued to 

experience high options trading 

volumes, as illustrated in the table 

below reflecting industry data from OCC 

for 2022, 2023, and 2024: 10

2022 2023 2024 

Customer ADV ............................................................................................................................. 34,091,409 35,957,560 38,412,142 

Total ADV .................................................................................................................................... 76,488,459 81,483,685 86,706,482 

Both total average daily volume and 

customer average daily volume in 2024 

increased over the already elevated 

levels in 2022 and 2023. In addition, the 

below industry data from OCC 

demonstrates the high options trading 


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101676 Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(4) and (5). 

volumes and volatility that the industry 

has continued to experience in 2024: 

May 2024 June 2024 July 2024 August 2024 September 

2024 October 2024 

Customer ADV ......................................... 36,231,012 39,784,756 40,657,739 38,558,587 39,214,407 39,920,560 

Total ADV ................................................. 72,462,024 79,569,512 81,315,478 77,117,174 78,428,814 79,841,120 

Because of the sustained impact of the 

trading volumes that have persisted 

through 2024, along with the difficulty 

of predicting if and when volumes may 

return to historical levels, the Exchange 

proposes to waive the ORF from 

December 1 through December 31, 2024 

to help ensure that ORF collection will 

not exceed [sic] ORF Costs for 2024. The 

Exchange cannot predict whether 

options volumes will remain at these 

levels going forward and projections for 

future regulatory costs are estimated, 

preliminary, and may change. However, 

the Exchange believes that the proposed 

waiver of the ORF would allow the 

Exchange to continue to monitor the 

amount collected from the ORF to help 

ensure that ORF collection, in 

combination with other regulatory fees 

and fines, does not exceed regulatory 

costs without the need to account for 

any ORF collection during the Waiver 

Period. 

Based on the Exchange’s estimated 

projections for its regulatory costs, 

balanced with the observed increase in 

options volumes, the Exchange proposes 

to resume assessing the current ORF rate 

of $0.0038 per contract as of January 1, 

2025. As noted above, although the 

options industry has experienced high 

options trading volumes in recent years, 

the Exchange cannot predict with 

certainty whether options volumes will 

remain at these levels going forward. 

The Exchange believes that maintaining 

the current rate when ORF collection 

resumes following the Waiver Period 

would allow the Exchange to continue 

assessing an ORF designed to recover a 

material portion, but not all, of the 

Exchange’s ORF Costs, based on current 

projections that the Exchange’s ORF 

Costs will increase in 2025. The 

Exchange will continue monitoring ORF 

Costs in advance of the resumption of 

the ORF and when it resumes assessing 

ORF on January 1, 2025, and, if the 

Exchange determines that, in light of 

projected volumes and ORF Costs, the 

ORF rate should be modified to help 

ensure that ORF collections would not 

exceed a material portion of ORF Costs, 

adjust the ORF by submitting a 

proposed rule change and notifying ATP 

Holders of such change by Trader 

Update. 

The Exchange also proposes to delete 

language in the Fee Schedule pertaining 

to the ORF waiver that was in effect 

from October 1, 2023 to December 31, 

2023, as well as the old ORF rate of 

$0.0058 per contract, which was 

superseded by the current ORF rate of 

$0.0038 as of January 1, 2024. The 

Exchange believes this change would 

improve the clarity of the Fee Schedule 

by removing obsolete language. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) 11 of the 

Act, in general, and Section 6(b)(4) and 

(5) 12 of the Act, in particular, in that it 

is designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers, or dealers. 

The Proposal Is Reasonable 

The Exchange believes the proposed 

temporary waiver of the ORF is 

reasonable because it would help ensure 

that collections from the ORF do not 

exceed a material portion of the 

Exchange’s ORF Costs. As noted above, 

the ORF is designed to recover a 

material portion, but not all, of the 

Exchange’s ORF Costs. 

Although there can be no assurance 

that the Exchange’s final costs for 2024 

will not differ materially from its 

expectations and prior practice, nor can 

the Exchange predict with certainty 

whether options volume will remain at 

current or similar levels going forward, 

the Exchange believes that the amount 

collected based on the current ORF rate, 

when combined with regulatory fees 

and fines, may result in collections in 

excess of the estimated ORF Costs for 

the year. Particularly, as noted above, 

the options market has continued to 

experience elevated volumes and 

volatility in 2024, thereby resulting in 

higher ORF collections than projected 

despite the reduced ORF rate in effect 

as of January 1, 2024. The Exchange 

therefore believes that it would be 

reasonable to waive ORF from December 

1 through December 31, 2024 to help 

ensure that ORF collection does not 

exceed [sic] the ORF Costs for 2024. 

Particularly, the Exchange believes that 

waiving the ORF from December 1 

through December 31, 2024 and taking 

into account all of the Exchange’s other 

regulatory fees and fines would allow 

the Exchange to continue covering a 

material portion of ORF Costs, while 

lessening the potential for generating 

excess funds that may otherwise occur 

using the current rate. The Exchange 

proposes to resume assessing its current 

ORF ($0.0038 per contract) following 

the Waiver Period. The Exchange 

believes that resumption of the ORF at 

the current rate on January 1, 2025 

(unless the Exchange determines it 

necessary to adjust the ORF rate to help 

ensure that ORF collections do not 

exceed [sic] ORF Costs) is reasonable 

because it would permit the Exchange to 

resume collecting an ORF that is 

designed to recover a material portion, 

but not all, of the Exchange’s projected 

ORF Costs. The Exchange’s proposal to 

resume ORF collection following the 

Waiver Period at the current ORF rate is 

based on the Exchange’s estimated 

projections for its regulatory costs, 

which are currently projected to 

increase in 2025, balanced with the 

increase in options volumes that has 

persisted into 2024 and that may 

continue into 2025. The Exchange will 

continue monitoring ORF Costs in 

advance of the resumption of the ORF 

and when it resumes assessing ORF on 

January 1, 2025, and, if the Exchange 

determines that, in light of projected 

volumes and ORF Costs, the ORF rate 

should be modified to help ensure that 

ORF collections would not exceed a 

material portion of ORF Costs, adjust 

the ORF by submitting a proposed rule 

change and notifying ATP Holders of 

such change by Trader Update. 

The Exchange also believes that the 

proposed deletion of language relating 

to an ORF waiver period that has now 

elapsed and a superseded ORF rate is 

reasonable because it would remove 

obsolete language and thus improve the 

clarity of the Fee Schedule. 


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I I I I I 
Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices 101677 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

The Proposal Is an Equitable Allocation 

of Fees 

The Exchange believes its proposal is 

an equitable allocation of fees among its 

market participants. The Exchange 

believes that the proposed waiver would 

not place certain market participants at 

an unfair disadvantage because it would 

apply equally to all ATP Holders on all 

their transactions that clear in the 

Customer range at the OCC and would 

allow the Exchange to continue to 

monitor the amount collected from the 

ORF to help ensure that ORF collection, 

in combination with other regulatory 

fees and fines, does not exceed 

regulatory costs. The Exchange also 

believes that recommencing the ORF on 

January 1, 2025 at the current rate, 

unless the Exchange determines it 

necessary to adjust the ORF to ensure 

that ORF collections do not exceed a 

material portion of ORF Costs, is 

equitable because the ORF would 

resume applying equally to all ATP 

Holders on options transactions in the 

Customer range, at a rate designed to 

recover a material portion, but not all, 

of the Exchange’s projected ORF Costs, 

based on current projections that such 

costs will increase in 2025. 

The proposed change to remove 

language relating to an ORF waiver 

period that has now elapsed and a 

superseded ORF rate is also equitable 

because it would eliminate language 

from the Fee Schedule that is no longer 

applicable to any ATP Holders. 

The Proposed Fee Is Not Unfairly 

Discriminatory 

The Exchange believes that the 

proposal is not unfairly discriminatory. 

The Exchange believes that the 

proposed waiver of the ORF would not 

place certain market participants at an 

unfair disadvantage because the change 

would apply to all ATP Holders subject 

to the ORF and would allow the 

Exchange to continue to monitor the 

amount collected from the ORF to help 

ensure that ORF collection, in 

combination with other regulatory fees 

and fines, does not exceed regulatory 

costs. The Exchange also has provided 

all such ATP Holders with 30 days’ 

advance notice of the planned change to 

the ORF. The Exchange also believes 

that recommencing the ORF on January 

1, 2025 at the current rate, unless the 

Exchange determines it necessary to 

adjust the ORF to ensure that ORF 

collections do not exceed a material 

portion of ORF Costs, is not unfairly 

discriminatory because the Exchange 

would resume assessing an ORF 

designed to recover a material portion, 

but not all, of the Exchange’s projected 

ORF Costs, based on current projections 

that such costs will increase in 2025. In 

addition, the ORF would resume 

applying equally to all ATP Holders 

based on their transactions that clear in 

the Customer range at the OCC. 

The proposed change to remove 

language relating to an ORF waiver 

period that has now elapsed and a 

superseded ORF rate is also not unfairly 

discriminatory because it would 

eliminate outdated language from the 

Fee Schedule that no longer impacts any 

ATP Holders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intramarket Competition. The 

Exchange believes the proposed change 

would not impose an undue burden on 

intramarket competition because the 

ORF is charged to all ATP Holders on 

all their transactions that clear in the 

Customer range at the OCC; thus, the 

amount of ORF imposed is based on the 

amount of Customer volume transacted. 

The Exchange believes that the 

proposed temporary waiver of the ORF 

would not place certain market 

participants at an unfair disadvantage 

because all options transactions must 

clear via a clearing firm. Such clearing 

firms can then choose to pass through 

all, a portion, or none of the cost of the 

ORF to its customers, i.e., the entering 

firms. The ORF is collected from ATP 

Holder clearing firms by the OCC on 

behalf of NYSE American and is 

assessed on all options transactions 

cleared at the OCC in the Customer 

range. The Exchange also believes 

recommencing the ORF on January 1, 

2025 at the current rate (unless the 

Exchange determines it necessary at that 

time to adjust the ORF to ensure that 

ORF collections do not exceed a 

material portion of ORF Costs) would 

not impose an undue burden on 

competition because it would permit the 

Exchange to resume assessing an ORF 

that is designed to recover a material 

portion, but not all, of the Exchange’s 

projected ORF Costs, based on current 

projections that such costs will increase 

in 2025. The ORF would, as currently, 

apply to all ATP Holders on their 

options transactions that clear in the 

Customer range at the OCC when ORF 

collection resumes on January 1, 2025. 

The Exchange also believes that the 

proposed change to eliminate language 

relating to an ORF waiver period that 

has now elapsed and a superseded ORF 

rate would not impact intramarket 

competition because it is intended only 

to add clarity to the Fee Schedule by 

removing obsolete text. 

Intermarket Competition. The 

proposed fee change is not designed to 

address any competitive issues. Rather, 

the proposed change is designed to help 

the Exchange adequately fund its 

regulatory activities while seeking to 

ensure that total collections from 

regulatory fees do not exceed [sic] total 

regulatory costs and to promote clarity 

in the Fee Schedule by deleting obsolete 

text. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to 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)(ii) of the Act 13 and Rule 

19b–4(f)(2) 14 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 shall 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– 

NYSEAMER–2024–63 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 


lotter on DSK11XQN23PROD with NOTICES1
101678 Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19d–1(c)(2). 

3See Securities Exchange Act Release No. 101283 

(October 8, 2024), 89 FR 83067 (‘‘Notice’’). 

4 17 CFR 240.19d–1(c)(1). 

5The 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 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. 

6 17 CFR 240.19d–1(c)(2). 

7The Exchange received its grant of registration 

on July 15, 2024, which included approving the 

rules that govern the Exchange. See Securities 

Exchange Act Release No. 100539 (July 15, 2024), 

89 FR 58848 (July 19, 2024) (File No. 10–240). 

Under the proposed MRVP, 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). 

According to the Exchange, the Conduct and 

Decorum Policies under Rule 1014(d)(1) are 

excluded from the proposed MRVP. See Notice, 

supra note 3, at 83067. 

8While 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. 

9See Notice, supra note 3, at 83067. 

10See id. 

11See id. 

12 17 CFR 240.19d–1(c)(2). 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–NYSEAMER–2024–63. 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–NYSEAMER–2024–63 and should 

be submitted on or before January 6, 

2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29470 Filed 12–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 101869; File No. 4–844] 

Self-Regulatory Organizations; MIAX 

Sapphire, LLC; Order Declaring 

Effective a Minor Rule Violation Plan 

December 10, 2024. 

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’’ or ‘‘Plan’’) pursuant to Section 

19(d)(1) of the Securities Exchange Act 

of 1934 (the ‘‘Act’’),1 and Rule 19d– 

1(c)(2) thereunder.2 The proposed 

MRVP was published for comment on 

October 15, 2024.3 The Commission 

received no comments on the proposal. 

This order declares the Exchange’s 

proposed MRVP effective. 

The Exchange’s MRVP specifies the 

rule violations that will be included in 

the Plan and will have sanctions not 

exceeding $2,500. Any violations 

resolved under the MRVP would not be 

subject to the provisions of Rule 19d– 

1(c)(1) of the Act,4 which requires 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.5 In accordance with 

Rule 19d–1(c)(2) under the Act,6 the 

Exchange proposed to designate certain 

specified rule 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. 

The Exchange proposed to include in 

its MRVP the procedures and violations 

currently included in Exchange Rule 

1014 (‘‘Imposition of Fines for Minor 

Rule Violations’’).7 According to the 

Exchange’s proposed MRVP, 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).8 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 fine 

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.9

According to the Exchange, 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.10 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.11

The Exchange requested that the 

Commission deem any changes to the 

rules applicable to the Exchange’s 

MRVP to be deemed modifications to 

the Exchange’s MRVP. 

The Commission finds that the 

proposal is consistent with the public 

interest, the protection of investors, or 

otherwise in furtherance of the purposes 

of the Act, as required by Rule 19d– 

1(c)(2) under the Act,12 because the 

MRVP will permit the Exchange to carry 

out its oversight and enforcement 


lotter on DSK11XQN23PROD with NOTICES1