[Federal Register Volume 75, Number 184 (Thursday, September 23, 2010)]
[Notices]
[Pages 58011-58012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23765]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62924; File No. 10-198]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing of Proposed Minor Rule Violation Plan
September 16, 2010.
Pursuant to Section 19(d)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19d-1(c)(2) thereunder,\2\ notice is hereby
given that on September 10, 2010, the BATS Y-Exchange, Inc. (``BATS Y-
Exchange'' or ``Exchange''), filed with the Securities and Exchange
Commission (the ``Commission'') copies of a proposed minor rule
violations plan 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 self-regulatory organization promptly file notice with the
Commission of any final disciplinary action taken with respect to any
person or organization.\4\ 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 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.
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\1\ 15 U.S.C. 78s(d)(1).
\2\ 17 CFR 240.19d-1(c)(2).
\3\ 17 CFR 240.19d-1(c)(1).
\4\ The 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.
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BATS Y-Exchange proposes to include 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'').\5\
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\5\ On 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).
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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
[[Page 58012]]
under BATS Y-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 Exchange-related order, market and transaction
data, as well as financial or regulatory records and information; Rule
11.8(a)(1) requirement for Market Makers to maintain continuous two-
sided limit orders; Rule 11.19 requirement to identify short sale
orders as such; and Rule 11.20 requirement to comply with locked and
crossed market rules.
BATS Y-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\
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\6\ BATS Y-Exchange attached a sample form of the quarterly
report with its submission to the Commission.
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I. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning BATS Y-Exchange's proposed Minor Rule Violation
Plan, including whether the proposed plan 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 [email protected]. Please include
File No. 10-198 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. 10-198. 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/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed MRVP that are filed with the
Commission, and all written communications relating to the proposed
Minor MRVP 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 the Exchange. 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. 10-198 and should be submitted on or before
October 14, 2010.
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 14, 2010, the Commission may, by order,
declare BATS Y-Exchange's proposed MRVP 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 MRVP, File No. 10-198, 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.
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\7\ 15 U.S.C. 78s(d)(1); 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(44).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-23765 Filed 9-22-10; 8:45 am]
BILLING CODE 8010-01-P