[Federal Register: April 30, 2003 (Volume 68, Number 83)]
[Notices]
[Page 23169-23170]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap03-101]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47720; File No. SR-BSE-2003-02]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. Relating to Extending Its Operating Hours for the Trading of
Nasdaq Securities
April 23, 2003.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 17, 2003, the Boston Stock Exchange, Inc. (``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by the Exchange. On April 10, 2003, the
Exchange filed Amendment No. 1 to the proposed rule change.\3\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange amended the proposal to
state that it deemed the proposed rule change to be non-
controversial in nature (rather than concerned solely with the
administration of the Exchange) and sought immediate effectiveness
of the proposed rule change pursuant to Section 19(b)(3)(A) of the
Act and waiver of the 30-day operative period for the effectiveness
of the rule change proposal. See Letter dated April 10, 2003, from
John Boese, Vice President, Legal and Compliance, Exchange, to
Katherine England, Assistant Director, Division of Market
Regulation, Commission. For purposes of calculating the 60-day
period within which the Commission may summarily abrogate the
proposed rule change under Section 19(b)(3)(C) of the Act, the
Commission considers that the period to commence on April 10, 2003,
the date the Exchange filed Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange seeks to amend the Nasdaq trading rules set forth in
the Rules of the Board of Governors of the Exchange to allow for
extended hours for the trading of Nasdaq securities.
Set forth below is the text of the proposed rule change. Proposed
new language is italicized; proposed deletions are in brackets.
* * * * *
Chapter XXXV
Trading in Nasdaq Securities
* * * * *
Dealings on the Floor--Hours
Section 8. [Pursuant to Chapter I-B, Sec. 2, Dealings on the
Floor--Hours, no member or member organization shall make any bid,
offer or transaction upon the floor of the Exchange, issue a commitment
to trade through ITS or send an order for a Nasdaq security to a Nasdaq
System market maker other than during the hours the Exchange is open
for the transaction of business. Nasdaq securities will not be eligible
to participate in the Post Primary Session.] For the purposes of
transacting business in Nasdaq securities only, the Exchange shall be
open from 7 a.m. until 6:30 p.m. Only transactions in Nasdaq securities
will be permitted outside the hours of 9:30 a.m. and 4:15 p.m., in
accordance with Chapter I-B, Business Hours, Section 1, Primary
Session, and Section 1(a) Post Primary Session.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing an alteration of the hours the Exchange
is to be open for trading Nasdaq securities. Presently, Chapter XXXV of
the Rules, Trading in Nasdaq Securities, Section 8, Dealings on the
Floor--Hours, limits the hours of trading in Nasdaq securities on the
Exchange to the hours of 9:30 a.m. to 4 p.m. The Exchange would delete
the present rule and replace it with one which would permit the
transaction of business, in Nasdaq securities only, between the hours
of 7 a.m. and 6:30 p.m. The Exchange believes that such an extension of
hours would allow Exchange members who trade Nasdaq securities to
remain competitive with their counterparts on other exchanges that
trade Nasdaq securities pursuant to unlisted trading privileges, as
well as NASD members who are permitted to conduct transactions in
Nasdaq securities during this extended period. Furthermore, the
Exchange believes that such extended hours are contemplated and
permitted by Article XI of the Joint Self-Regulatory Organization Plan
Governing the Collection, Consolidation and Dissemination of Quotation
and Transaction Information for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading Privilege Basis (``OTC/UTP Plan'') \4\
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\4\ The OTC/UTP Plan was initially approved in 1990. See
Securities Exchange Act Release No. 28146 (June 26, 1990), 55 FR
27917 (July 6, 1990). It has subsequently been amended. See also
Securities Exchange Act Release Nos. 34371 (July 13, 1994), 59 FR
37103 (July 20, 1994); 35221 (January 11, 1995), 60 FR 3886 (January
19, 1995); 36102 (August 14, 1995), 60 FR 43626 (August 22, 1995);
36226 (September 13, 1995), 60 FR 49029 (September 21, 1995); 36368
(October 13, 1995), 60 FR 54091 (October 19, 1995); 36481 (November
13, 1995), 60 FR 58119 (November 24, 1995); 36589 (December 13,
1995), 60 FR 65696 (December 20, 1995); 36650 (December 28, 1995),
61 FR 358 (January 4, 1996); 36934 (March 6, 1996), 61 FR 10408
(March 13, 1996); 36985 (March 18, 1996), 61 FR 12122 (March 25,
1996); 37689 (September 16, 1996), 61 FR 50058 (September 24, 1996);
37772 (October 1, 1996), 61 FR 52980 (October 9, 1996); 38457 (March
31, 1997), 62 FR 16880 (April 8, 1997); 38794 (June 30, 1997), 62 FR
36586 (July 8, 1997); 39505 (December 31, 1997), 63 FR 1515 (January
9, 1998); 40151 (July 1, 1998), 63 FR 36979 (July 8, 1998); 40896
(December 31, 1998), 64 FR 1834 (January 12, 1999); 41392 (May 12,
1999), 64 FR 27839 (May 21, 1999); 42268 (December 23, 1999), 65 FR
1202 (January 6, 2000); 43005 (June 30, 2000), 65 FR 42411 (July 10,
2000); 44099 (March 23, 2001), 66 FR 17457 (March 30, 2001); 44348
(May 24, 2001), 66 FR 29610 (May 31, 2001); 44552 (July 13, 2001),
66 FR 37712 (July 19, 2001); 44694 (August 14, 2001), 66 FR 43598
(August 20, 2001); 44804 (September 17, 2001), 66 FR 48299
(September 19, 2001); 45081 (November 19, 2001), 66 FR 59273
(November 27, 2001); 46381 (August 19, 2002), 67 FR 164 (August 23,
2002); 46729 (October 25, 2002), 67 FR 212 (November 1, 2002).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act,\5\ in general, and Section 6(b)(5) of the
Act,\6\ in particular, in that it is designed to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating securities transactions, to remove
impediments to and perfect the mechanism of a free and
[[Page 23170]]
open market and a national market system, and, in general, to protect
investors and the public interest.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action \7\
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\7\ At the Exchange's request, the Commission corrected the
rationale and the citation to the section of the Act pursuant to
which the proposed rule change has become immediately effective.
Telephone conversation among John Boese, Vice President, Legal and
Compliance, Exchange; Christopher B. Stone, Special Counsel,
Division of Market Regulation, Commission; and Ann E. Leddy,
Attorney, Division of Market Regulation, Commission (April 21,
2003).
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Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and
Rule 19b-4(f)(6) thereunder.\9\ At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Acceleration of the operative date will allow the
Exchange to extend the trading hours for transactions in Nasdaq
securities with immediate effect and prevent any unfair competitive
disadvantage with respect to the hours in which Nasdaq securities can
be traded on the Exchange. For these reasons, the Commission designates
the proposal to be effective and operative upon filing with the
Commission.\10\
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\10\ For purposes only of accelerating the operative date of the
proposed rule change, the Commission considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Persons making written submissions should file
six copies thereof with the Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. Copies of
the submission, all subsequent amendments, all written statements with
respect to the proposed rule change that are filed with the Commission,
and all written communications relating to the proposed rule change
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 inspection and copying in the Commission's
Public Reference Room. Copies of such filing will also be available for
inspection and copying at the principal office of the Exchange. All
submissions should refer to file number SR-BSE-2003-02 and should be
submitted by May 21, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-10603 Filed 4-29-03; 8:45 am]
BILLING CODE 8010-01-P