New Exchange Plan Handles Small Fines with Quarterly Reports
Published Date: 7/21/2025
Notice
Summary
24X National Exchange is rolling out a new plan to handle small rule-breaking fines up to $2,500 without rushing to report each one immediately. This means members and their associates will get quicker, simpler penalties for minor slip-ups, with the Exchange updating the SEC every three months instead. It’s a smoother, faster way to keep things fair and tidy starting soon!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Minor fines up to $2,500 with quarterly reporting
The Exchange proposes a Minor Rule Violation Plan allowing it to impose fines not exceeding $2,500 on Members, associated persons, or registered/non-registered employees for specified minor rule violations and to report those actions to the SEC quarterly instead of promptly. The MRVP was filed July 8, 2025 and would be effective only after the Commission may declare it effective after August 11, 2025.
Paying fine waives disciplinary rights
Under Exchange Rule 8.15(c), if a person pays a fine imposed under the MRVP, that payment is deemed a waiver of that person's right to a disciplinary proceeding under Rules 8.1–8.13 and any review by the Appeals Committee or the Board.
Right to contest within at least 15 business days
A person fined under Rule 8.15 may contest the finding by filing a written response with the Exchange no later than the date for contesting, which the Exchange sets at not less than 15 business days after service of the written statement; if contested, the matter becomes a disciplinary proceeding under Rules 8.1–8.13.
Aggregation of similar violations allowed
The Exchange may aggregate similar violations when imposing fines under Rule 8.15 if the conduct was unintentional, caused no injury to public investors, or resulted from a single systemic problem or cause that has been corrected.
Specific Exchange rules designated as minor violations
The Exchange proposes that the violations listed in Rule 8.15.01 — including Rule 4.2 and its Interpretations (data/records responses), Rule 11.9(a)(5) (identify short sale orders), Rule 11.9(f) (locked/crossed markets), Rule 3.5 (Advertising Practices), Rule 12.11 Interpretations and Policy .01 and Exchange Act Rule 604 (display of limit orders), Rule 11.20(a)(1) (Market Maker quotations), and Rules 4.5–4.16 (Consolidated Audit Trail compliance) — be treated as minor rule violations eligible for fines up to $2,500 under the MRVP.
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