[Federal Register: June 29, 2007 (Volume 72, Number 125)]
[Notices]
[Page 35735-35736]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29jn07-90]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55945; File No. SR-BSE-2007-23]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto Amending Section 5 (Obligations of Market
Makers) of Chapter VI of the Rules of the Boston Options Exchange for
Clarification Purposes Regarding the Guaranteed Directed Order
June 22, 2007.
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 June 1, 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 Exchange.
BSE has filed the proposal as a non-controversial rule change pursuant
to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) \4\
thereunder, which renders the proposal effective upon filing with the
Commission. On June 21, 2007, BSE filed Amendment No. 1 to the proposed
rule change. The Commission is publishing this notice to solicit
comments on the proposed rule change, as amended, 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).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend Section 5 (Obligations of Market
Makers) of Chapter VI of the Rules of the Boston Options Exchange
(``BOX Rules'') for clarification purposes regarding the Guaranteed
Directed Order (``GDO''). The text of the proposed rule is available at
the Exchange, the Commission's Public Reference Room, and on the
Exchange's Web site (http://www.bostonstock.com).
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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 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 to amend Section 5 (Obligations of Market
Makers) of Chapter VI of the BOX Rules \5\ to clarify that the GDO is
exposed for one time period with an NBBO filter at the end of the
exposition. The section of the BOX Rules which discusses the GDO
contains a cross reference to Chapter V, Section 16(b). The Exchange
proposes to extend the cross reference and numbering to reflect the
specific subsection of the corresponding BOX Rule so that the
Exchange's rules are accurate, comprehendible, and transparent to the
marketplace. The GDO exposure time is not affected by this filing and
remains three seconds, as set forth in Chapter VI, Section 5 of the BOX
Rules.
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\5\ Specifically, the Exchange is amending Chapter VI, Section
5(c)(iii)(2)(b)(5) of the BOX Rules. Telephone conversation between
Terri Evans, Special Counsel, Division of Market Regulation,
Commission, and Brian Donnelly, AVP Regulation and Compliance, BSE,
on June 21, 2007 (clarifying the specific rule being amended by the
proposed rule change as described in Amendment No. 1).
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2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, and to protect investors and
the public interest.
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\6\ 15 U.S.C. 78f(b).
\7\ 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
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 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 after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) \9\ thereunder.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ BSE provided the Commission with written notice of its
intent to file the proposed rule change. See Section 19(b)(3)(A) of
the Act, and Rule 19b-4(f)(6)(iii) thereunder. 15 U.S.C.
78s(b)(3)(A), 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. The Commission notes that the proposed rule change provides
greater specificity as to a cross-reference within a rule, thereby
avoiding confusion resulting from an incomplete cross-reference.
Accordingly, the Commission designates the proposal to be operative
upon filing with the Commission.\11\ 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.\12\
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\11\ For purposes only of waiving the 30-day operative delay of
the proposal, the Commission has considered the proposed rule's
impact on efficiency, competition and capital formation. 15 U.S.C.
78c(f).
\12\ For purposes of calculating the 60-day period within which
the Commission may summarily abrogate the proposed rule change, as
amended, under Section 19(b)(3)(C) of the Act, the Commission
considers the period to commence on June 21, 2007, the date on which
BSE submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 35736]]
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-2007-23 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-2007-23. 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 BSE. 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-2007-23 and should be
submitted on or before July 20, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-12604 Filed 6-28-07; 8:45 am]
BILLING CODE 8010-01-P