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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