8956 Federal Register / Vol. 90, No. 22 / Tuesday, February 4, 2025 / Notices 

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

2 17 CFR 240.19d–1(c)(2). 

3See Securities Exchange Act Release No. 101759 

(November 26, 2024), 89 FR 95833 (‘‘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 December 20, 2018, which included approving 

the rules that govern the Exchange. See Securities 

Exchange Act Release No. 84891 (December 20, 

2018), 83 FR 67421 (December 28, 2018) (File No. 

10–233). 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 603 (Quotation Parameters); 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 604 (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)(4) are 

excluded from the proposed MRVP. See Notice, 

supra note 3, at 95833. 

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 95833. 

10See id. 

11See id. 

12 17 CFR 240.19d–1(c)(2). 

13 Id. 

14 17 CFR 200.30–3(a)(44). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102302; File No. 4–845] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Order Declaring 

Effective a Minor Rule Violation Plan 

January 29, 2025. 

On November 19, 2024, MIAX 

Emerald, LLC (‘‘Emerald’’ 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 December 3, 

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 

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 Emerald, 

LLC, File No. 4–845 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. 2025–02149 Filed 2–3–25; 8:45 am] 

BILLING CODE 8011–01–P 


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