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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES2

number of times the rule violation has occurred, and the date of disposition.
The Exchanges MRVP, as proposed to be amended, is consistent with Sections 6b1, 6b5 and 6b6 of the Exchange Act,307 which require, in part, that an exchange have the capacity to enforce compliance with, and provide appropriate discipline for, violations of the rules of the Commission and of the exchange. In addition, because amended Rule 12140 will offer procedural rights to a person sanctioned for a violation listed in proposed Rule 24010, the Exchange will provide a fair procedure for the disciplining of members and associated persons, consistent with Section 6b7 of the Exchange Act.308
This proposal to include the rules listed in Rule 24010 in the Exchanges MRVP is consistent with the public interest, the protection of investors, or otherwise in furtherance of the purposes of the Exchange Act, as required by Rule 19d1c2 under the Exchange Act,309
because it should strengthen the Exchanges 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 requesting the proposed change to the MRVP, the Exchange in no way minimizes the importance of compliance with Exchange Rules and all other rules subject to the imposition of fines under the MRVP. However, the MRVP
provides a reasonable means of addressing rule violations that do not rise to the level of requiring formal disciplinary proceedings, while providing greater flexibility in handling certain violations. 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 the MRVP or whether a violation requires a formal disciplinary action.
Amendments to Existing BOX Rules Due to the new BSTX trading facility and the introduction of trading in Securities= sic on the Exchange, the Exchange proposes to amend those Exchange Rules that would apply to BSTX Participants, but that currently only contemplate trading in options.
Therefore, the Exchange is seeking to amend the following Exchange Rules, each of which is set forth in Exhibit 5B
submitted with the proposal:
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U.S.C. 78fb1, 78fb5 and 78fb6.
U.S.C. 78fb7.
309 17 CFR 240.19d1c2.
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Rule 100a Definitions Options Participant or Participant: The Exchange proposes to change the definition of Options Participant or Participant to Participant to reflect Options Participants and BSTX
Participants and to amend the definition as follows: The term Participant means a firm, or organization that is registered with the Exchange pursuant to the Rule 2000 Series for purposes of participating in trading on a facility of the Exchange and includes an Options Participant and BSTX Participant.
Rule 100a Definitions Options Participant: The Exchange proposes to add a definition of Options Participant that would be defined as follows: The term Options Participant is a Participant registered with the Exchange for purposes of participating in options trading on the Exchange. 310
Rule 2020g2 Participant Eligibility and Registration: The Exchange proposes to delete subsection g2 and replace it with the following:
2 persons associated with a Participant whose functions are related solely and exclusively to transactions in municipal securities; 3 persons associated with a Participant whose functions are related solely and exclusively to transactions in commodities; 4 persons associated with a Participant whose functions are related solely and exclusively to transactions in securities futures, provided that any such person is appropriately registered with a registered futures association; and 5
persons associated with a Participant who are restricted from accessing the Exchange and that do not engage in the securities business of the Participant relating to activity that occurs on the Exchange. 311
Rule 2060 Revocation of Participant Status or Association with a Participant: The Exchange proposes to amend Rule 2060 to refer to securities transactions rather than options securities transactions.
Rule 3180a Mandatory Systems Testing: The Exchange proposes to amend subsection a1 of Rule 3180 to also include BSTX Participants, in addition to the categories of Market Makers and OFPs.
310 In addition, as a result of these new defined terms, the Exchange proposes to renumber definitions set forth in Rule 100a to keep the definitions in alphabetically order.
311 In addition to revising Rule 2020g2 to broaden it to include securities activities beyond just options trading, the Exchange proposes to add greater specificity to define persons that are exempt from registration, consistent with the approach adopted by other exchanges. See e.g., IEX Rule 2.160m.

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Rule 7130a2v Execution and Price/Time Priority: The Exchange proposes to update the cross reference to Rule 100a58 to refer to Rule 100a59, which defines the term Request for Quote or RFQ under the Rules after the proposed renumbering.
Rule 7150a2 Price Improvement Period: The Exchange proposes to amend Rule 7150a2 to update the cross reference to the definition of a Professional in Rule 100a51 to instead refer to Rule 100a52, which is where that term would be defined in the Rules after the proposed renumbering.
Rule 7230 Limitation of Liability:
The Exchange proposes to amend the references in Rule 7230 to Options Participants to simply Participants.
Rule 7245a4 Complex Order Price Improve Period: The Exchange proposes to update the cross reference to Rule 100a51 to refer to Rule 100a52, which defines the term Professional after the proposed renumbering.
IM80503: The Exchange proposes to update the cross reference to Rule 100a56 to refer to Rule 100a57, which defines the term quote or quotation after the proposed renumbering.
Rule 11010a Investigation Following Suspension: The Exchange proposes to amend subsection a of Rule 11010 to remove the reference to in BOX options contracts and to modify the word position with the word security as follows: . . . the amount owing to each and a complete list of each open long and short security position maintained by the Participant and each of his or its Customers.
Rule 11030 Failure to Obtain Reinstatement: The Exchange proposes to amend Rule 11030 to replace the reference to Options Participant to simply Participant.
Rule 12140 Imposition of Fines for Minor Rule Violations: The Exchange proposes to amend Rule 12140 to replace references to Options Participant to simply Participant. In addition, the Exchange proposes to add paragraph f to Rule 12140, to incorporate the aforementioned modifications to the Exchanges MRVP.
New paragraph f of Rule 12140 would provide: f Transactions on BSTX.
Rules and penalties relating to trading on BSTX that are set forth in Rule 24010
Penalty for Minor Rule Violations.
The Exchange believes that the proposed amendments to the definitions set forth in Rule 100 are consistent with
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