SEC Greenlights Quarterly Fines for Stock Exchange Slip-Ups
Published Date: 2/4/2025
Notice
Summary
MIAX Emerald, a stock exchange, got the green light to use a new plan that handles small rule-breaking cases with fines up to $2,500. Instead of reporting every tiny slip right away, they’ll now update the SEC every three months, making things smoother and faster. This change mainly affects traders and firms on MIAX Emerald and helps keep the market fair without bogging down with paperwork.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
Small fines up to $2,500 allowed
If you are a MIAX Emerald member, employee, or associated person, the Exchange may impose fines up to $2,500 for designated minor rule violations. If you pay the fine, you are deemed to waive your right to a disciplinary hearing; if you contest the fine, the matter becomes a disciplinary proceeding.
Which rules can be handled under MRVP
The MRVP applies to specific Exchange rules, including Rule 307; Rule 803; Rule 804; Rule 520; Rule 603; Rule 605; Rule 314; Rule 700; Rule 309; Rule 310; Rule 403; Rule 604; Rule 1904; and Rules 1701–1713. Violations of these listed rules may be resolved under the MRVP with sanctions not exceeding $2,500.
Quarterly reporting to the SEC replaces prompt reports
MIAX Emerald will not be required to promptly file notice with the SEC for each qualifying minor disciplinary action. Instead, the Exchange will provide the SEC with a quarterly report listing the minor rule violation actions handled under the plan, per Rule 19d-1(c)(2).
Conduct and Decorum rules excluded
The Exchange explicitly excludes the Conduct and Decorum Policies under Rule 1014(d)(4) from the MRVP. That means violations of those Conduct and Decorum rules are not eligible to be resolved under the MRVP process.
Quarterly reports will include identifying details
Each quarterly report to the SEC will list the disposition date, the name of the firm or individual, the Exchange's enforcement number, the review period, the nature of the violation, the rule number, how many instances occurred, and the sanction imposed. The Exchange will provide this information for actions handled under the MRVP.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-20466, Adviser and Regulated Fund Custody Rules; Crypto Custody Rules
The SEC is updating rules for how investment advisers and funds handle crypto assets, making sure they keep these digital investments safe and properly reported. These changes affect advisers, funds, and anyone managing crypto securities, aiming to modernize rules and improve transparency. Comments on the proposal are open until December 7, 2026, so get ready to weigh in!
2026-19260, Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4
The SEC wants to stop its federal rule that controls how shareholders can make proposals at company meetings, letting state laws and company rules take over instead. They’re also changing rules so companies can sometimes vote on proposals not in their official materials—but shareholders can opt out if they want. This affects investors and companies, with comments open until November 20, 2026, and could shake up how shareholder voices are heard and counted.
2026-18424, Political Contributions by Certain Investment Advisers
The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing to rescind the political contribution rule under the Investment Advisers Act of 1940 (the "Advisers Act"), which prohibits investment advisers from providing investment advisory services for compensation to a government client for two years after an adviser or any covered associate of the adviser makes a contribution to certain categories of elected officials or candidates, among other prohibitions. In the more than fifteen years since the rule was adopted, implementation challenges associated with the political contribution rule have resulted in a range of significant unintended consequences, including compliance practices among some investment advisers that may have had the effect of restricting all political contributions by the investment advisers and their employees. Market participants also have stated that the political contribution rule is burdensome, complex, and both lacks clarity and creates a de facto strict liability standard. The Commission is of the view that other existing requirements of the Advisers Act and its associated rules, including prohibitions on fraud, fiduciary duty requirements, the compliance rule, and the code of ethics rule (defined below), are likely sufficient to address pay-to-play practices while allowing an adviser the flexibility to implement an approach that is more appropriately tailored to its particular risks, rendering the political contribution rule unnecessary. The Commission also is proposing to amend the rule under the Advisers Act pertaining to books and records consistent with the proposed rescission.
2026-18190, Transfer Agent Rules
The U.S. Securities and Exchange Commission ("SEC" or "Commission") is proposing to adopt new rules, amend existing rules, amend the existing form for registration with the Commission as a transfer agent (Form TA-1) and the existing form for reporting activities of transfer agents (Form TA-2), and rescind an existing rule governing registered transfer agents. The proposals are designed to modernize the rules governing registered transfer agents.
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
Previous / Next Documents
Previous: 2025-02140, Withdrawal of Notice Inviting Applications and Cancellation of the Competition for the Expanding Opportunity Through Quality Charter Schools Program (CSP)-Grants to Charter Management Organizations for the Replication and Expansion of High-Quality Charter Schools (CMO Grants)
The Department of Education is canceling the current 2025 competition for charter school grants to management organizations and pulling the application notice. They’re reworking the rules to make the process simpler, more innovative, and better aligned with new priorities. Don’t worry—new applications will open soon, so funding chances remain strong for this year!
Next: 2025-02150, Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Granting Approval of a Proposed Rule Change To Modify the Package of Complimentary Services Provided to Certain Eligible Switches and To Modify the Definition of an Eligible Switch
Nasdaq is updating who qualifies for free services when they switch their stock listing to Nasdaq and changing what those free services include. This helps companies save money and get cool tools like investor websites and market insights to make their switch smoother. The changes kick in soon, making Nasdaq an even sweeter spot for companies thinking about switching.