[Federal Register: January 25, 2007 (Volume 72, Number 16)]
[Notices]
[Page 3448-3450]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ja07-84]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55139; File No. SR-BSE-2007-01]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Effective Date of a Previous Rule Change Relating to
Information Contained in a Directed Order on the Boston Options
Exchange
January 19, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 16, 2007, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by the BSE. The
BSE filed the proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposed rule change effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE proposes to extend the effective date of the amended rule
governing the Exchange's Directed Order process on the Boston Options
Exchange (``BOX'') from January 31, 2007 to July 31, 2007.
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 BSE 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 BSE 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
On March 20, 2006 the BSE proposed an amendment to its rules
governing its Directed Order process on the BOX.\5\ The rules were
amended to clearly state that the BOX Trading Host identifies to an
Executing Participant (``EP'') the identity of the firm entering a
Directed Order. The amended rule was to be effective until June 30,
2006, while the Commission considered a corresponding Exchange proposal
\6\ to amend its rules to permit EPs to choose the firms from which
they will accept Directed Orders, while providing complete anonymity of
the firm entering a Directed Order.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 53516 (March 20,
2006), 71 FR 15232 (March 27, 2006) (SR-BSE-2006-14).
\6\ See Securities Exchange Act Release No. 53357 (February 23,
2006), 71 FR 10730 (March 2, 2006) (SR-BSE-2005-52).
---------------------------------------------------------------------------
On June 30, 2006, the Exchange proposed extending the effective
date of the amended rule governing its Directed Order process on the
BOX from June 30,
[[Page 3449]]
2006 to September 30, 2006 \7\ while the Commission continued to
consider the corresponding Exchange proposal to amend its rules to
permit EPs to choose the firms from which they would accept Directed
Orders, while providing complete anonymity of the firm entering a
Directed Order and, on September 11, 2006, the Exchange again proposed
extending the effective date of the amended rule governing its Directed
Order process on the BOX from September 30, 2006 to January 31,
2007.\8\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 54082 (June 30,
2006), 71 FR 38913 (July 10, 2006) (SR-BSE-2006-29).
\8\ See Securities Exchange Act Release 54469 (September 19,
2006), 71 FR 56201 (September 26, 2006) (SR-BSE-2006-38).
---------------------------------------------------------------------------
The Exchange now proposes another extension of the effective date
of the amended rule governing its Directed Order process on the BOX
from January 31, 2007, to July 31, 2007. In the event the Commission
reaches a decision with respect to the corresponding Exchange proposal
to amend its rules before July 31, 2007, the amended rule governing the
Exchange's Directed Order process on the BOX will cease to be effective
at the time of that decision.
This filing proposes to extend the effective date of the amended
rule governing the Exchange's Directed Order process on the BOX from
January 31, 2007 to July 31, 2007.\9\
---------------------------------------------------------------------------
\9\ In the event that the issue of anonymity in the Directed
Order process is not resolved by July 31, 2007, the Exchange intends
to submit another filing under Rule 19b-4(f)(6) under the Act
extending this rule and system process.
---------------------------------------------------------------------------
2. Statutory Basis
The amended rule is designed to clarify the information contained
in a Directed Order. This proposed rule filing seeks to extend the
amended rule's effectiveness from January 31, 2007 to July 31, 2007.
This extension will afford the Commission the necessary time to
consider SR-BSE-2005-52 which would amend the BOX rules on a permanent
basis to permit EPs to choose the firms from which they will accept
Directed Orders while providing complete anonymity of the firm entering
a Directed Order. Accordingly, the Exchange believes that the proposal
is consistent with the requirements of Section 6(b) of the Act,\10\ in
general, and Section 6(b)(5) of the Act,\11\ in particular, in that it
is designed to foster cooperation and coordination with persons engaged
in regulating, clearing, settling, processing information with respect
to, and facilitating transaction in securities, to remove impediments
to and perfect the mechanism for a free and open market and a national
market system, and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) \12\ of the Act and Rule 19b-4(f)(6)
thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \15\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The BSE requests that the Commission
waive the 5-day pre-filing notice requirement and the 30-day operative
delay, as specified in Rule 19b-4(f)(6)(iii),\16\ which would make the
rule change effective and operative upon filing. The Commission
believes that waiving the 5-day pre-filing notice and the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would continue to conform the BOX
rules with BOX's current practice and clarify that Directed Orders on
BOX are not anonymous.\17\ Accordingly, the Commission designates that
the proposed rule change effective and operative upon filing with the
Commission.
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change 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 rule-comments@sec.gov. Please include
File No. SR-BSE-2007-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BSE-2007-01. 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 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 also will be available for inspection and copying at the
principal office of the BSE.
All comments received will be posted without change; the Commission
does
[[Page 3450]]
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 Number SR-BSE-2007-01 and should be
submitted on or before February 15, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-1103 Filed 1-24-07; 8:45 am]
BILLING CODE 8011-01-P