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[Federal Register Volume 90, Number 28 (Wednesday, February 12, 2025)]
[Notices]
[Pages 9441-9446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02496]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34-102370; File No. SR-SAPPHIRE-2025-05]

Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of 
Filing and Order Granting Accelerated Approval of a Proposed Rule 
Change To Amend Exchange Rule 1014, Imposition of Fines for Minor Rule 
Violations

February 6, 2025
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on January 24, 2025, MIAX Sapphire, LLC (``MIAX Sapphire'' or 
``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 and approving the proposal on an 
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend proposes to amend Exchange Rule 
1014, Imposition of Fines for Minor Rule Violations, to adopt new 
paragraph (e)

[[Page 9442]]

to identify rule violations and sanctions that will be applicable to 
the Trading Floor \3\ under the Exchange's Minor Rule Violation Plan 
(``MRVP'').\4\
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    \3\ The term ``Trading Floor'' or ``Floor'' means the physical 
trading floor of the Exchange located in Miami, Florida. The Trading 
Floor will consist of one ``Crowd Area'' or ``Pit'' where Floor 
Participants will be located and option contracts will be traded. 
The Crowd or Pit shall be marked with specific visible boundaries on 
the Trading Floor, as determined by the Exchange. See Exchange Rule 
100.
    \4\ See Securities Exchange Act Release No. 101869 (December 10, 
2024), 89 FR 101678 (December 16, 2024) (Order Declaring Effective a 
Minor Rule Violation Plan).
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    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings, at the Exchange's principal office, 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 Exchange 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 these statements may be examined at the places specified in 
Item III below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Exchange Rule 1014, Imposition of 
Fines for Minor Rule Violations, to adopt rule violations and sanctions 
that will be applicable to the Trading Floor under the Exchange's 
proposed Minor Rule Violation Plan (``MRVP''). The Exchange proposes 
these rules in conjunction with the recent approval of MIAX Sapphire as 
a national securities exchange.\5\ Specifically, the proposed rule 
change amends Exchange Rule 1014 to (i) modify the rule text of 
paragraph (a) to add a reference to proposed paragraph (e); (ii) modify 
the rule text of paragraph (d)(4) for clarity and precision; (iii) 
amend the table in paragraph (d)(5) to make a minor non-substantive 
technical correction; and (iv) adopt new paragraph (e) to add 
violations that may occur on the Exchange's Trading Floor that the 
Exchange believes to be minor in nature.
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    \5\ See Securities Exchange Act Release No. 100539 (July 15, 
2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order 
approving application of MIAX Sapphire, LLC for registration as a 
national securities exchange).
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    Rule 1014 provides that in lieu of commencing a disciplinary 
proceeding, the Exchange may, subject to the certain requirements set 
forth in the Rule, impose a fine, not to exceed $5,000 on any Member 
\6\ or person associated with or employed by a Member, with respect to 
any Rule violation listed in paragraph (d) and proposed paragraph (e) 
of this Rule. Any fine imposed pursuant to this Rule that (i) does not 
exceed $2,500 and (ii) is not contested, shall be reported on a 
periodic basis, except as may otherwise be required by Rule 19d-1 under 
the Exchange Act or by any other regulatory authority. Further, the 
Rule provides that any person against whom a fine is imposed under the 
Rule shall be served with a written statement setting forth: (i) the 
Rule(s) allegedly violated; (ii) the act or omission constituting each 
such violation; (iii) the fine imposed for each violation; and (iv) the 
date by which such determination becomes final and such fine must be 
paid or contested, which date shall be not less than thirty (30) 
calendar days after the date of service of such written statement. 
Proposed paragraph (e) will set forth the list of specific Exchange 
Rules under which a Member or person associated with or employed by a 
Member may be subject to a fine for violations of such Rules and the 
applicable fines that may be imposed by the Exchange. As with all 
violations incorporated into its MRVP, the Exchange will proceed under 
this Rule only for violations that are minor in nature. Any other 
violation will be addressed pursuant to Rule 1003, Letters of Consent 
or Rule 1004, Charges.
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    \6\ The term ``Member'' means an individual or organization that 
is registered with the Exchange pursuant to Chapter II of MIAX 
Sapphire Rules for purposes of trading on the Exchange as an 
``Electronic Exchange Member'' or ``Market Maker.'' See Exchange 
Rule 100.
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    Current Rule 1014(d) currently states, ``The Exchange's trading 
conduct and decorum policies shall be distributed to Members 
periodically and shall set forth the specific dollar amounts that may 
be imposed as a fine hereunder with respect to any violations of those 
policies.'' The Exchange now proposes to amend the text of the rule to 
reflect the change proposed herein regarding trading conduct and 
decorum fines. Specifically, the Exchange proposes to amend current 
Rule 1014(d) to state, ``The Exchange's trading conduct and decorum 
policies shall be distributed to Members periodically.'' Under proposed 
Rule 1014(e)(4) the Exchange has proposed fine amounts for violations 
of Exchange Rule 2080(b) through Rule 2080(d) and believes that trading 
conduct and decorum is best addressed in new paragraph (e), which is 
focused on violations of Trading Floor rules.
    The Exchange also proposes to amend Rule 1014(d)(5) to make a 
technical non-substantive correction to the table which describes 
violations of Rule 520(b). Specifically, the column titled, ``Number of 
Violations Within One Calendar Year,'' provides a numerical range of 
violations which corresponds to the second column which provides the 
associated sanction. For example, the first row provides that 1 to 5 
violations will result in a sanction consisting of a Letter of Caution. 
Similarly, the second row provides that 6 to 10 violations within one 
calendar year will result in a sanction consisting of a fine in the 
amount of $500. The Exchange now proposes to correct the fourth row in 
the first column to state ``16 to 20'' whereas it currently incorrectly 
states ``16 or 20.'' The Exchange believes this correction will provide 
clarity and precision in the Exchange's rules and eliminate the 
potential for confusion regarding violations of Exchange Rule 520(b).
    The Exchange proposes to adopt new paragraph (e), Trading Floor 
Violations Subject to Fines, to adopt rule violations and sanctions 
applicable to the Trading Floor under the Exchange's Minor Rule 
Violation Plan. The Exchange anticipates opening its physical trading 
floor in Q2 of 2025 and proposes to adopt these rules in furtherance of 
the Exchange's regulatory obligations as a self-regulatory 
organization. The Exchange believes that the proposed fines for Trading 
Floor violations are appropriate to deter Members from violating 
requirements and restrictions which are necessary for the orderly 
operation of a Trading Floor.
    The Exchange proposes to adopt 1014(e)(1), General Responsibilities 
of Floor Brokers \7\ pursuant to Exchange Rule 2025. Under this 
proposed rule, a Floor Broker who, when handling an order, fails to use 
due diligence to cause the order to be executed at the best price or 
prices available to him in accordance with the Rules of the Exchange 
shall be subject to the following fines:
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    \7\ A Floor Broker is an individual who is registered with the 
Exchange for the purpose, while on the Trading Floor, of accepting 
and handling options orders. See Exchange Rule 2015.

[[Page 9443]]

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,500.
Third Offense..............................  $5,000.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt 1014(e)(2), Failure to 
Properly Record Orders pursuant to Exchange Rule 2030(e). Under this 
proposed rule, any Floor Participant \8\ who fails to comply with the 
order format and system entry requirements on the Trading Floor shall 
be subject to the following fines:
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    \8\ The term ``Floor Participant'' means Floor Brokers as 
defined in Rule 2015 and Floor Market Makers as defined in Rule 
2105(b). See Exchange Rule 100.

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $500.
Second Offense.............................  $1,000.
Third Offense..............................  $2,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt 1014(e)(3), Failure to 
Properly Execute a Qualified Floor Order (QFO), pursuant to Exchange 
Rule 2040. Under this proposed rule, any Floor Participant who fails to 
properly execute a QFO shall be shall be subject to the following 
fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $500.
Second Offense.............................  $1,000.
Third Offense..............................  $2,000.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt 1014(e)(4), Trading Conduct 
and Order & Decorum on the Trading Floor, pursuant to Rule 2080(b)-(d). 
Under this proposed rule, violations of Rule 2080 related to Trading 
Floor Conduct and Decorum shall be subject to the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,000.
Third Offense..............................  $3,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt 1014(e)(5), Discretionary 
Transactions. Under this proposed rule, violations of Rule 2035 
regarding Discretionary Transactions shall be subject to the following 
fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $250.
Second Offense.............................  $500.
Third Offense..............................  $1,000.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt 1014(e)(6), Floor Participant 
Not Available to Reconcile an Uncompared Trade pursuant to Rule 2085. 
Under this proposed rule, violations of Rule 2085 regarding the 
resolution of uncompared trades shall be subject to the following 
fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $500.
Second Offense.............................  $1,000.
Third Offense..............................  $2,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

[[Page 9444]]

    Next, the Exchange proposes to adopt Rule 1014(e)(7), Floor 
Participant Communication and Equipment, pursuant to Rule 2070. Under 
this proposed rule, violations of Rule 2070 regarding Floor Participant 
Communications and Equipment shall be subject to the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,500.
Third Offense..............................  $3,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt Rule 1014(e)(8), Improper 
Vocalization of a Trade, pursuant to Policy .09 of Rule 2040. Under 
this proposed rule, violations of Policy .09 of Rule 2040 regarding the 
requirements for public outcry shall be subject to the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,500.
Third Offense..............................  $3,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt Rule 1014(e)(9), Floor Market 
Maker Failure to Comply with Quotation Requirements, pursuant to Rule 
2105(c)(1). Under this proposed rule, violations of Rule 2105(c)(1) 
regarding a Floor Market Maker's Open Outcry Quoting Obligations shall 
be subject to the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,500.
Third Offense..............................  $3,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt Rule 1014(e)(10), Floor Market 
Maker Quote Spread Parameters, pursuant to Rule 2105(d)(1). Under this 
proposed rule, violations of Rule 2105(d)(1) regarding the legal bid/
ask differential requirements on the Trading Floor shall be subject to 
the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,500.
Third Offense..............................  $3,500.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Next, the Exchange proposes to adopt Rule 1014(e)(11), Floor Broker 
Failure to Honor the Priority of Bids and Offers, pursuant to Rule 
2045(d). Under this proposed rule, violations of Rule 2045(d) regarding 
a Floor Broker's obligations in determining Time Priority Sequence 
shall be subject to the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $1,000.
Second Offense.............................  $2,500.
Third Offense..............................  $5,000.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

    Finally, the Exchange proposes to adopt Rule 1014(e)(12), Floor 
Broker Failure to Identify a Broker Dealer Order, pursuant to Policy 
.02 of Rule 2040. Under this proposed rule, violations of Policy .02 of 
Rule 2040 regarding a Floor Broker's responsibility to identify its 
orders shall be subject to the following fines:

------------------------------------------------------------------------
 Number of cumulative violations within any
      twenty-four month rolling period                 Sanction
------------------------------------------------------------------------
First Offense..............................  $500.
Second Offense.............................  $1,500.
Third Offense..............................  $3,000.
Fourth and Each Subsequent Offense.........  Formal Disciplinary Action.
------------------------------------------------------------------------

[[Page 9445]]

    The Exchange notes that the proposed violations listed above are 
substantially similar to the Rules of BOX Options Exchange's Minor Rule 
Violation Plan regarding violations and sanctions applicable to a 
physical trading floor.\9\
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    \9\ See BOX Options Exchange Rule 12140(e).
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2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\10\ Specifically, the Exchange believes that its proposed rule 
change is consistent with Section 6(b)(5) \11\ requirements in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in, securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system and, in general, to protect investors and the public interest.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed changes to Rule 1014 are 
consistent with and further the objectives of the Act. Additionally, 
the Exchange believes that the proposal is consistent with Section 
6(b)(6) of the Act \12\ which requires the rules of an exchange provide 
that its members be appropriately disciplined for violations of the Act 
as well as the rules and regulations thereunder, by imposing pre-set 
fine amounts for breaches of order and decorum to reflect the severity 
of the violation and provide an appropriate form of deterrence for 
violations of Exchange Rules and the regulations thereunder. In 
addition, because existing MIAX Sapphire Rule 1014 provides procedural 
rights to a person fined under the Exchange's MRVP to contest the fine 
and permits a hearing on the matter, the Exchange believes that the 
proposal is consistent with Sections 6(b)(7) and 6(d)(1) of the 
Act,\13\ because it provides a fair procedure for the disciplining of 
Members and persons associated with Members. Further, the Exchange 
believes that its proposal to make a technical non-substantive 
correction to rule text benefits investors by providing clarity and 
precision in the Exchange's rules.
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    \12\ 15 U.S.C. 78f(b)(6).
    \13\ 15 U.S.C. 78f(b)(7) and (d)(1).
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    The Exchange believes that the proposed fines for Trading Floor 
violations are appropriate to deter Members from violating requirements 
and restrictions which are necessary for the orderly operation of a 
Trading Floor. The fines should create further deterrents for certain 
activity on the Trading Floor which disrupts the orderly operation of 
the Trading Floor. Further, the minor rule plan assists the regulatory 
staff in protecting its market to the benefit of the public. Finally, 
the Exchange believes that the proposal is consistent with the public 
interest, the protection of investors, and otherwise furthers the 
purposes of the Act, because Rule 1014 strengthens the Exchange's 
ability to carry out its oversight and enforcement responsibilities as 
an SRO in cases where full disciplinary proceedings may be unsuitable 
in view of the minor nature of the particular violation. Additionally, 
these rules are based on those of a competing options exchange that 
also has a trading floor.\14\
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    \14\ See supra note 9.
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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.
    The Exchange notes that the rule changes being proposed are similar 
to the rules of the BOX Options Exchange.\15\ Further, the proposal 
relates to the Exchange's role and responsibilities as a self-
regulatory organization and the manner in which it disciplines its 
Members and associated persons for violations of its Rules.
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    \15\ See id.
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    As such, the Exchange does not believe the proposal will impose any 
burden on inter-market competition not necessary or appropriate in 
furtherance of the purpose of the Act. Further, the Exchange does not 
believe the proposal will impose any burden on intra-market 
competition, as all similarly situated market participants will be 
treated in the same manner under this proposal.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. 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 [email protected]. Please include 
file number SR-SAPPHIRE-2025-05 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-SAPPHIRE-2025-05. 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-SAPPHIRE-2025-05 and should 
be submitted on or before March 5, 2025.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with

[[Page 9446]]

the requirements of the Act and the rules and regulations thereunder 
applicable to a national securities exchange.\16\ In particular, the 
Commission finds that the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\17\ which requires that the rules of an 
exchange be designed to promote just and equitable principles of trade, 
to remove impediments and to perfect the mechanism of a free and open 
market and a national market system, and, in general, to protect 
investors and the public interest. The Commission also believes that 
the proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act 
\18\ which require that the rules of an exchange enforce compliance 
with, and provide appropriate discipline for, violations of Commission 
and Exchange rules. Finally, 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,\19\ which governs minor rule violation 
plans.
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    \16\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
    \19\ 17 CFR 240.19d-1(c)(2).
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    As stated above, generally the Exchange proposes to amend Exchange 
Rule 1014 to adopt rule violations and sanctions that will be 
applicable to the Trading Floor, in conjunction with the recent 
approval of MIAX Sapphire as a national securities exchange. 
Specifically, the Exchange proposes to amend Rule 1014 in the following 
ways: to (i) modify the rule text of paragraph (a) to add a reference 
to proposed paragraph (e); (ii) modify the rule text of paragraph 
(d)(4) for clarity and precision; (iii) amend the table in paragraph 
(d)(5) to make a minor non-substantive technical correction; and (iv) 
adopt new paragraph (e) to add violations that may occur on the 
Exchange's Trading Floor that the Exchange believes to be minor in 
nature.
    The Commission believes that Rule 1014 is an effective way to 
discipline a member for a minor violation of a rule. The Commission 
finds that the Exchange's proposal to amend Rule 1014 to adopt rule 
violations and sanctions that will be applicable to the Trading Floor, 
is consistent with the Act because it may help the Exchange's ability 
to better carry out its oversight and enforcement responsibilities. The 
Commission also believes that the Exchange's proposal to make non-
substantive and technical changes is consistent with the Act because 
such changes will add clarity and accuracy to the Exchange's rules.
    In approving the propose rule change, the Commission in no way 
minimizes the importance of compliance with the Exchange's rules and 
all other rules subject to fines under Rule 1014. The Commission 
believes that a violation of any self-regulatory organization's rules, 
as well as Commission rules, is a serious matter. However, Rule 1014 
provides a reasonable means of addressing rule violations that may not 
rise to the level of requiring formal disciplinary proceedings, while 
providing greater flexibility in handling certain violations. The 
Commission expects that the Exchange will continue to conduct 
surveillance with due diligence and make a determination based on its 
findings, on a case-by-case basis, whether a fine of more or less than 
the recommended amount is appropriate for a violation under Rule 1014 
or whether a violation requires formal disciplinary action.
    For the same reasons discussed above, the Commission finds good 
cause, pursuant to Section 19(b)(2) of the Act,\20\ for approving the 
proposed rule change prior to the thirtieth day after the date of 
publication of the notice of the filing thereof in the Federal 
Register. The proposal will assist the Exchange in preventing 
fraudulent and manipulative practices by allowing the Exchange to 
adequately enforce compliance with, and provide appropriate discipline 
for, violations of Exchange rules. Moreover, the proposed changes raise 
no new or novel issues. Accordingly, the Commission believes that a 
full notice-and-comment period is not necessary before approving the 
proposal.
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    \20\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\21\ and Rule 19d-1(c)(2) thereunder,\22\ that the proposed rule change 
(SR-SAPPHIRE-2025-05) be, and hereby is, approved on an accelerated 
basis.
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    \21\ 15 U.S.C. 78s(b)(2).
    \22\ 17 CFR 240.19d-1(c)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-02496 Filed 2-11-25; 8:45 am]
BILLING CODE 8011-01-P
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