[Federal Register: January 16, 2008 (Volume 73, Number 11)]
[Notices]
[Page 2961-2962]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja08-108]
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SECURITIES AND EXCHANGE COMMISSION
Release No. 34-57114; File No. SR-BSE-2008-01]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to BOX's Licensing Fees
January 8, 2008.
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 January 2, 2008, 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 Exchange.
The Exchange has designated this proposal as one establishing or
changing a due, fee, or other charge applicable only to a member,
pursuant to section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. 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\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE is proposing to amend the Fee Schedule of the Boston
Options Exchange (``BOX''). The proposed amendment will increase the
fees for transactions in options on certain indices effected by a
broker-dealer through its proprietary accounts.
The text of the proposed rule change is available at the Exchange,
on the Exchange's Web site at http://www.bostonstock.com/Regulatory/effective.aspx
, and at the Commission's Public Reference Room.
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
[[Page 2962]]
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
On November 13, 2006, the Exchange entered into a licensing
agreement (``Agreement'') with The NASDAQ Stock Market, Inc.
(``Nasdaq'') to use various indices and trademarks in connection with
the listing and trading of index options on the full value Nasdaq-
100[reg] Index (``NDX'')\5\ and the reduced value Nasdaq-100[reg] Index
(Mini-NDX[reg] Index (MNX)).\6\ The Agreement established a license
fee, payable by BOX to Nasdaq, of $0.15 per NDX and MNX contracts
traded on BOX. On November 14, 2006, the Exchange established a $0.15
surcharge fee for transactions in options on NDX and MNX.\7\ As with
certain other licensed options, the Exchange adopted a surcharge fee
for trading in these options to defray the licensing costs. The
Exchange believes that charging the BOX Options Participants that trade
these instruments is the most equitable means of recovering the costs
of the license.
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\5\ Nasdaq[reg], Nasdaq-100[reg] and Nasdaq-100 Index[reg] are
registered trademarks of The Nasdaq Stock Market, Inc. (which with
its affiliates are the ``Corporations'') and are licensed for use by
the Boston Options Exchange Group in connection with the trading of
options products based on the Nasdaq-100 Index[reg]. The product(s)
have not been passed on by the Corporations as to their legality or
suitability. The product(s) are not issued, endorsed, sold, or
promoted by the Corporations. The Corporations make no warranties
and bear no liability with respect to the product(s). The
Corporations do not guarantee the accuracy and/or uninterrupted
calculation of the Nasdaq-100 Index[reg] or any data included
therein. The Corporations make no warranty, express or implied, as
to results to be obtained by licensee, owners of the product(s), or
any other person or entity from the use of the Nasdaq-100 Index[reg]
or any data included therein. The Corporations make no express or
implied warranties, and expressly disclaim all warranties of
merchantability or fitness for a particular purpose or use with
respect to the Nasdaq-100 Index or any data included therein.
Without limiting any of the foregoing, in no event shall the
Corporations have any liability for any lost profits or special,
incidental, punitive, indirect or consequential damages, even if
notified of the possibility of such damages.
\6\ See id.
\7\ On December 20, 2006, BSE filed Amendment No. 1 to that
proposed rule change. See Securities Exchange Act Release No. 55000
(December 21, 2006), 71 FR 78479 (December 29, 2006) (SR-BSE-2006-
47).
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The Agreement between the Exchange and Nasdaq was set to expire on
December 31, 2007. The Exchange has recently entered into an extension
of the Agreement for the listing and trading of NDX and MNX options.
The extension imposes a one cent ($0.01) increase in the per contract
license fees charged to BOX by Nasdaq. The proposed rule change would
increase the current surcharge fee for transactions in NDX and MNX
options by one cent (($0.01), to 16 cents ($0.16). This increase will
correspondingly offset the costs incurred by BOX.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\8\ in general, and section
6(b)(4) of the Act,\9\ in particular, which requires that an exchange
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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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
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 rule change is establishing or changing a
due, fee, or other charge applicable only to a member, it has become
effective pursuant to section 19(b)(3)(A)(ii) of the Act\10\ and Rule
19b-4(f)(2) thereunder.\11\ 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.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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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 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 Number SR-BSE-2008-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BSE-2008-01. 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
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-2008-01 and should be
submitted on or before February 6, 2008.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-628 Filed 1-15-08; 8:45 am]
BILLING CODE 8011-01-P