Federal Register / Vol. 75, No. 202 / Wednesday, October 20, 2010 / Notices 64771 

10 15 U.S.C. 78s(b)(3)(a)(ii). 

11 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. 62924 

(September 16, 2010), 75 FR 58011. The notice was 

published under File No. 10–198 used for BATS Y– 

Exchange’s Form 1 application, however the order 

will be published under File No. 4–616. 

4 17 CFR 240.19d–1(c)(1). 

5The 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. 

6On August 13, 2010, the Exchange’s application 

for registration as a national securities exchange, 

including the rules governing the BATS Y– 

Exchange, was approved. See Securities Exchange 

Act Release No. 62716 (August 13, 2010), 75 FR 

51295 (August 19, 2010) (File No. 10–198). In the 

approval order, the Commission noted that BATS 

Y–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 BATS Y–Exchange, the Exchange must 

file a minor rule violation plan with the 

Commission. BATS Y–Exchange represented that 

modifications may be made to Rule 8.15.01 in the 

future. BATS Y–Exchange proposed that, when 

amendments to Rule 8.15.01 are made pursuant to 

a rule filing submitted pursuant to Rule 19b–4 

under the Act, such filing would automatically be 

deemed a request by BATS Y–Exchange for 

Commission approval of a modification to its 

MRVP. 

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. 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.10 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 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

No. SR–NASDAQ–2010–130 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File No. 

SR–NASDAQ–2010–130. 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 

Web site (http://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 Web site 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 such filing 

also will be available for inspection and 

copying at the principal office of 

NASDAQ. 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. SR–NASDAQ– 

2010–130 and should be submitted on 

or before November 10, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26336 Filed 10–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63113; File No. 4–616] 

Self-Regulatory Organizations; Order 

Approving Minor Rule Violation Plan 

for BATS Y–Exchange, Inc. 

October 15, 2010. 

On September 10, 2010, BATS Y– 

Exchange, Inc. (‘‘BATS Y–Exchange’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) a proposed minor rule 

violation plan (‘‘MRVP’’) 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 

public comment on September 23, 

2010.3 The Commission received no 

comments on the proposal. This order 

approves BATS Y–Exchange’s proposed 

MRVP. 

BATS Y–Exchange’s MRVP specifies 

those uncontested 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 4 requiring that a self-regulatory 

organization 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, the Exchange proposed to 

designate certain specified rule 

violations as minor rule violations, and 

requested 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 Y–Exchange 

included in its proposed MRVP the 

policies and procedures currently 

included in BATS Y–Exchange Rule 

8.15 (‘‘Imposition of Fines for Minor 

Violation(s) of Rules’’) and the rule 

violations included in BATS Y– 

Exchange Rule 8.15.01.6

Pursuant 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 of a member, or a registered or 

non-registered employee of a member 

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 


emcdonald on DSK2BSOYB1PROD with NOTICES
64772 Federal Register / Vol. 75, No. 202 / Wednesday, October 20, 2010 / Notices 

7BATS Y–Exchange attached a sample form of 

the quarterly report with its submission to the 

Commission. 8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78f(b)(1) and 78f(b)(6). 

10 15 U.S.C. 78f(b)(7) and 78f(d)(1). 11 17 CFR 240.19d–1(c)(2). 

12 Id. 

13 17 CFR 200.30–3(a)(44). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62818 

(September 1, 2010), 75 FR 54665. 

5See Letter to Elizabeth M. Murphy, Secretary, 

Commission, from William F. Galvin, Secretary of 

the Commonwealth, Commonwealth of 

Massachusetts, dated September 28, 2010; and 

Letter to Elizabeth M. Murphy, Secretary, 

Commission, from Michael R. Trocchio, Bingham 

McCutchen LLP, on behalf of Pink OTC Markets 

Inc., dated October 3, 2010. 

6 15 U.S.C. 78s(b)(2). 

7 15 U.S.C. 78s(b)(2). 

8 17 CFR 200.30–3(a)(31). 

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 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. 

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.7

The Commission finds that the 

proposed MRVP is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange. In 

particular, the Commission believes that 

the proposal is consistent with Section 

6(b)(5) of the Act,8 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 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 9 which 

require that the rules of an exchange 

enforce compliance with, and provide 

appropriate discipline for, violations of 

the Commission and Exchange rules. In 

addition, because the MRVP offers 

procedural rights to a person sanctioned 

under Rule 8.15, the Commission 

believes that Rule 8.15 provides a fair 

procedure for the disciplining of 

members and persons associated with 

members, consistent with Sections 

6(b)(7) and 6(d)(1) of the Act.10

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,11 because the 

MRVP strengthens BATS Y–Exchange’s 

ability to carry out its oversight and 

enforcement responsibilities as an SRO 

in cases where full disciplinary 

proceedings are unsuitable in view of 

the minor nature of the particular 

violation. 

In approving this proposal, the 

Commission in no way minimizes the 

importance of compliance with 

Exchange rules and all other rules 

subject to the imposition of sanctions 

under Rule 8.15. The Commission 

believes that the violation of an SRO’s 

rules, as well as Commission rules, is a 

serious matter. However, Rule 8.15 

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 that BATS Y–Exchange will 

continue to conduct surveillance with 

due diligence and make determinations 

based on its findings, on a case-by-case 

basis, whether a sanction under the 

MRVP is appropriate, or whether a 

violation requires formal disciplinary 

action. 

It is therefore ordered, pursuant to 

Rule 19d–1(c)(2) under the Act,12 that 

the proposed MRVP for BATS Y– 

Exchange, File No. 4–616, be, and 

hereby is, approved and declared 

effective. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26359 Filed 10–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63105; File No. SR–BX– 

2010–059] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on Proposed Rule 

Change To Create a Listing Market on 

the Exchange 

October 14, 2010. 

On August 20, 2010, NASDAQ OMX 

BX, Inc. (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

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

of 1934 (‘‘Act’’),2 and Rule 19b–4 

thereunder,3 a proposed rule change to 

create a listing market, which will be 

called ‘‘BX.’’ The proposed rule change 

was published for comment in the 

Federal Register on September 8, 2010.4

The Commission received two comment 

letters on this proposal.5

Section 19(b)(2) of the Act 6 provides 

that within forty-five days of the 

publication of notice of the filing of a 

proposed rule change, or within such 

longer period up to ninety days as the 

Commission may designate if it finds 

such longer period to be appropriate 

and publishes its reasons for so finding 

or as to which the self-regulatory 

organization consents, the Commission 

shall either approve the proposed rule 

change, disapprove the proposed rule 

change, or institute proceedings to 

determine whether the proposed rule 

change should be disapproved. The 45th 

day for this filing is October 23, 2010. 

The Commission is extending this 45- 

day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider this proposed rule change, 

which would create a new listing 

market on the Exchange, and to consider 

the comment letters that have been 

submitted in connection with this 

proposed rule change. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,7

designates December 7, 2010, as the date 

by which the Commission should either 

approve or disapprove or institute 

proceedings to determine whether to 

disapprove the proposed rule change. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26358 Filed 10–19–10; 8:45 am] 

BILLING CODE 8011–01–P 


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