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 


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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Notices 101679 

13 Id. 

14 17 CFR 200.30–3(a)(44). 

1See rule 22e–3(a)(3) and 22e–3(b). 

2The Commission has not received any notices 

invoking rule 22e–3 to halt redemptions. However, 

for administrative purposes, we are reporting one 

respondent and one annual response. 

responsibilities as an SRO more 

efficiently in cases where formal 

disciplinary proceedings are not 

necessary due to the minor nature of the 

particular violation. 

In declaring the Exchange’s MRVP 

effective, the Commission does not 

minimize the importance of compliance 

with Exchange rules and all other rules 

subject to the imposition of sanctions 

under Exchange Rule 1014(d). Violation 

of an SRO’s rules, as well as 

Commission rules, is a serious matter. 

However, Exchange Rule 1014(d) 

provides a reasonable means of 

addressing violations that do not rise to 

the level of requiring formal 

disciplinary proceedings, while 

providing greater flexibility in handling 

certain violations. The Commission 

expects the Exchange to continue to 

conduct surveillance and make 

determinations based on its findings, on 

a case-by-case basis, regarding whether 

a violation requires formal disciplinary 

action or whether a sanction under the 

MRVP is appropriate. 

It is therefore ordered, pursuant to 

Rule 19d–1(c)(2) under the Act,13 that 

the proposed MRVP for MIAX Sapphire, 

LLC, File No. 4–844 be, and hereby is, 

declared effective. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29472 Filed 12–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–603, OMB Control No. 

3235–0658] 

Proposed Collection; Comment 

Request; Extension: Rule 22e–3 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that, under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520), the Securities and 

Exchange Commission (the 

‘‘Commission’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

Section 22(e) of the Investment 

Company Act of 1940, as amended [15 

U.S.C. 80a–22(e)] (‘‘Act’’) generally 

prohibits funds, including money 

market funds, from suspending the right 

of redemption, and from postponing the 

payment or satisfaction upon 

redemption of any redeemable security 

for more than seven days. The provision 

was designed to prevent funds and their 

investment advisers from interfering 

with the redemption rights of 

shareholders for improper purposes, 

such as the preservation of management 

fees. Although section 22(e) permits 

funds to postpone the date of payment 

or satisfaction upon redemption for up 

to seven days, it does not permit funds 

to suspend the right of redemption for 

any longer amount of time, absent 

certain specified circumstances or a 

Commission order. 

Rule 22e–3 under the Act [17 CFR 

270.22e–3] exempts money market 

funds from section 22(e) to permit them 

to suspend redemptions in order to 

facilitate an orderly liquidation of the 

fund. Specifically, rule 22e–3 permits a 

money market fund to suspend 

redemptions and postpone the payment 

of proceeds pending board-approved 

liquidation proceedings if: (i) the fund, 

at the end of a business day, has 

invested less than ten percent of its total 

assets in weekly liquid assets or, in the 

case of a fund that is a government 

money market fund or a retail money 

market fund, the fund’s price per share 

as computed for the purpose of 

distribution, redemption and 

repurchase, rounded to the nearest one 

percent, has deviated from the stable 

price established by the board of 

directors or the fund’s board of 

directors, including a majority of 

directors who are not interested persons 

of the fund, determines that such a 

deviation is likely to occur; (ii) the 

fund’s board of directors, including a 

majority of disinterested directors, 

irrevocably has approved the 

liquidation of the fund; and (iii) the 

fund, prior to suspending redemptions, 

notifies the Commission of its decision 

to liquidate and suspend redemptions. 

Rule 22e–3 also provides an exemption 

from section 22(e) for registered 

investment companies that own shares 

of a money market fund pursuant to 

section 12(d)(1)(E) of the Act (‘‘conduit 

funds’’), if the underlying money market 

fund has suspended redemptions 

pursuant to the rule. A conduit fund 

that suspends redemptions in reliance 

on the exemption provided by rule 22e– 

3 is required to provide prompt notice 

of the suspension of redemptions to the 

Commission. Notices required by the 

rule must be provided by electronic 

mail, directed to the attention of the 

Director of the Division of Investment 

Management or the Director’s designee.1

Compliance with the notification 

requirement is mandatory for money 

market funds and conduit funds that 

rely on rule 22e–3 to suspend 

redemptions and postpone payment of 

proceeds pending a liquidation, and are 

not kept confidential. 

Commission staff estimates that, on 

average, one fund would be required to 

make the required notice every year.2

Commission staff further estimates that 

a money market fund or conduit fund 

would spend approximately one hour of 

an in-house attorney’s time to prepare 

and submit the notice required by the 

rule. Given these estimates, the total 

annual burden of the notification 

requirement of rule 22e–3 for all money 

market funds and conduit funds would 

be approximately one hour at a cost of 

$511. The estimated total annual burden 

hours associated with rule 22e–3 is 1 

hour and external costs increased from 

$0 to $584. This change in external costs 

reflects revised estimates. These 

estimates are made solely for the 

purposes of the Paperwork Reduction 

Act, and is not derived from a 

comprehensive or even a representative 

survey or study of the costs of 

Commission rules. 

Compliance with the collection of 

information requirements of the rule is 

necessary to obtain the benefit of relying 

on the rule. 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 control number. 

Written comments are invited on: (a) 

whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden 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 

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 


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