53468 Federal Register / Vol. 73, No. 180 / Tuesday, September 16, 2008 / Notices 

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

2 17 CFR 240.19d–1(c)(2). 

3 17 CFR 240.19d–1(c)(1). 

4The Commission adopted amendments to 

paragraph (c) of Rule 19d–1 to allow self-regulatory 

organizations (‘‘SROs’’) to submit for Commission 

approval plans for the abbreviated reporting of 

minor disciplinary infractions. See Securities 

Exchange Act Release No. 21013 (June 1, 1984), 49 

FR 23828 (June 8, 1984). Any disciplinary action 

taken by an SRO against any person for violation 

of a rule of the SRO which has been designated as 

a minor rule violation pursuant to such a plan filed 

with the Commission shall not be considered 

‘‘final’’ for purposes of Section 19(d)(1) of the Act 

if the sanction imposed consists of a fine not 

exceeding $2,500 and the sanctioned person has not 

sought an adjudication, including a hearing, or 

otherwise exhausted his administrative remedies. 

5On August 18, 2008, the Commission approved 

BATS Exchange’s application for registration as a 

national securities exchange, including the rules 

governing the BATS Exchange. See Securities 

Exchange Act Release No. 58375, 73 FR 49498 

(August 21, 2008). In the approval order, the 

Commission noted that BATS Exchange Rule 8.15 

provides for the imposition of fines for minor rule 

violations pursuant to a minor rule violation plan. 

Accordingly, the Commission noted that as a 

condition to the operation of the BATS Exchange, 

the Exchange must file a minor rule violation plan 

with the Commission. 

6BATS Exchange attached a sample form of the 

quarterly report with its submission to the 

Commission. 

Dated: September 10, 2008. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–21607 Filed 9–15–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, September 18, 2008 at 1 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Aguilar, as duty 

officer, voted to consider the items 

listed for the Closed Meeting in closed 

session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, 

September 18, 2008 will be: 

Formal orders of investigation; 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings of an 

enforcement nature; 

An adjudicatory matter; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: The Office of the Secretary at 

(202) 551–5400. 

Dated: September 11, 2008. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–21643 Filed 9–15–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58485; File No. 4–568] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing of 

Proposed Minor Rule Violation Plan 

September 8, 2008. 

Pursuant to section 19(d)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19d–1(c)(2) 

thereunder,2 notice is hereby given that 

on August 29, 2008, the BATS 

Exchange, Inc. (‘‘BATS’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) copies of proposed 

minor rule violations with sanctions not 

exceeding $2,500 which would not be 

subject to the provisions of Rule 19d– 

1(c)(1) of the Act 3 requiring that a selfregulatory organization promptly file 

notice with the Commission of any final 

disciplinary action taken with respect to 

any person or organization.4 In 

accordance with paragraph (c)(2) of Rule 

19d–1 of the Act, the Exchange 

proposed to designate certain specified 

rule violations as minor rule violations, 

and requests that it be relieved of the 

reporting requirements regarding such 

violations, provided it gives notice of 

such violations to the Commission on a 

quarterly basis. BATS Exchange 

proposes to include in its proposed 

MRVP the policies and procedures 

currently included in BATS Exchange 

Rule 8.15 (‘‘Imposition of Fines for 

Minor Violation(s) of Rules’’).5

According to the Exchange’s proposed 

MRVP, under Rule 8.15, the Exchange 

may impose a fine (not to exceed 

$2,500) on a member or an associated 

person with respect to any rule listed in 

Rule 8.15.01. The Exchange shall serve 

the person against whom a fine is 

imposed with a written statement 

setting forth the rule or rules violated, 

the act or omission constituting each 

such violation, the fine imposed, and 

the date by which such determination 

becomes final or by which such 

determination must be 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 BATS Exchange rules. Any 

person against whom a fine is imposed 

may contest the Exchange’s 

determination by filing with the 

Exchange a written response, at which 

point the matter shall become a 

disciplinary proceeding. 

Under Rule 8.15.01, violations of the 

following rules would be appropriate for 

disposition under the minor rule 

violations plan: Rule 4.2 and 

Interpretations thereunder, requiring the 

submission of responses to Exchange 

requests for trading data within 

specified time period; Rule 4.2 and 

Interpretations thereunder, related to 

the requirement to furnish Exchangerelated order, market and transaction 

data, as well as financial or regulatory 

records and information; Rule 11.15, 

requirement to identify short sale orders 

as such; and Rule 11.16, requirement to 

comply with locked and crossed market 

rules. 

BATS Exchange proposed to include 

the rule violations listed in Rule 8.15.01 

in its minor rule violation plan. Upon 

approval of the plan, the Exchange will 

provide the Commission a quarterly 

report of actions taken on minor rule 

violations under the plan. The quarterly 

report will include: The Exchange’s 

internal file number for the case, the 

name of the individual and/or 

organization, the nature of the violation, 

the specific rule provision violated, the 

sanction imposed, the number of times 

the rule violation has occurred, and the 

date of disposition.6

I. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning BATS Exchange’s 

proposed Minor Rule Violation Plan, 

including whether the proposed plan is 

consistent with the Act. Comments may 


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Federal Register / Vol. 73, No. 180 / Tuesday, September 16, 2008 / Notices 53469 

7 15 U.S.C. 78s(d)(1) and 17 CFR 240.19d–1(c)(2). 

8 17 CFR 200.30–3(a)(44). 

17 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the self-regulatory 

organization to give the Commission notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Commission has determined to waive the five-day 

prefiling period in this case. 

18 17 CFR 240.19b–4(f)(6)(iii). 

19See E-mail from Lisa J. Fall, General Counsel 

and Corporate Secretary, BOX, to Molly Kim, 

Special Counsel, Division of Trading and Markets, 

Commission, on August 29, 2008. 

20For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58254 

(July 30, 2008), 73 FR 45511. 

be submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/other.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. 4–568 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549. 

All submissions should refer to File No. 

4–568. This file number should be 

included on the subject line if e-mail 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 Web site 

(http://www.sec.gov/rules/other.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 changes 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 inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549–1090. All comments received 

will be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File No. 4–568 and 

should be submitted on or before 

October 16, 2008. 

II. Date of Effectiveness of the Proposed 

Minor Rule Violation Plan and Timing 

for Commission Action 

Pursuant to section 19d–1 of the Act 

and Rule 19d–1(c)(2) thereunder,7 after 

October 16, 2008, the Commission may, 

by order, declare BATS Exchange’s 

proposed Minor Rule Violation Plan 

effective if the plan is consistent with 

the public interest, the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. The 

Commission in its order may restrict the 

categories of violations to be designated 

as minor rule violations and may 

impose any other terms or conditions to 

the proposed Minor Rule Violation Plan, 

File No. 4–568, and to the period of its 

effectiveness which the Commission 

deems necessary or appropriate in the 

public interest, for the protection of 

investors or otherwise in furtherance of 

the purposes of this Act. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–21616 Filed 9–15–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58445A; File No. SR–BSE– 

2008–43] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Regarding 

Transfer of Ownership of MX US 2, 

Inc.; Correction 

September 10, 2008. 

In FR Doc. No. E8–20869, for 

Tuesday, September 9, 2008, beginning 

on page 52434, make the following 

correction. On page 52436, first column, 

the first full paragraph is revised to read 

as follows: 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.17 However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest.18 The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay.19 The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because BSE has represented that the 

Instruments of Accession will be 

executed on August 29, 2008, and there 

is no reason to delay implementation of 

the changes to the BOX LLC Agreement 

pursuant to the Instruments of 

Accession. For these reasons, the 

Commission designates the proposal to 

be operative upon filing with the 

Commission.20

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–21485 Filed 9–15–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58499; File No. SR–NYSE– 

2008–58] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving Proposed Rule Change To 

Make Permanent a Pilot Program 

Under Which the Exchange Excludes 

From Its Earnings Standard Gains or 

Losses From Extinguishment of Debt 

Prior to Maturity 

September 9, 2008. 

I. Introduction 

On July 22, 2008, the New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to enable the Exchange to adjust 

the earnings of companies for purposes 

of the Exchange’s pre-tax earnings 

standard by excluding gains or losses 

recognized in connection with the 

extinguishment of debt prior to its 

maturity. The proposed rule change was 

published for comment in the Federal 

Register on August 5, 2008.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to amend the 

earnings standard of section 102.01C(I) 

of the Exchange’s Listed Company 

Manual (‘‘Manual’’) to enable the 

Exchange to adjust the earnings of 

companies for purposes of its pre-tax 

earnings standard by excluding gains or 

losses recognized in connection with 

the extinguishment of debt prior to its 

maturity. The adjustment would relate 


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