Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 55189 

11 15 U.S.C. 78s(b)(2). 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option 

linkage proposed by the American Stock Exchange 

LLC, the Chicago Board Options Exchange, 

Incorporated, and the International Securities 

Exchange, Inc. See Securities Exchange Act Release 

No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 

2000) (‘‘Linkage Plan’’). Subsequently, upon 

separate requests by the Philadelphia Stock 

Exchange, Inc., the Pacific Exchange, Inc., and the 

BSE, the Commission issued order to permit these 

exchanges to participate in the Linkage Plan. See 

Securities Exchange Act Release Nos. 43573 

(November 16, 2000), 65 FR 70851 (November 28, 

2000); 43574 (November 16, 2000), 65 FR 70850 

(November 28, 2000); and 40198 (February 5, 2004), 

69 FR 7029 (February 12, 2004). 

4See Securities Exchange Act Release No. 52205 

(August 4, 2005), 70 FR 46551. 

5See Section 1, subsection (j) of Chapter XII of 

the BOX Rules. 

6 15 U.S.C. 78f. 

7 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

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). 

5The BSE withdrew Amendment No. 1 on August 

12, 2005 for technical and formatting reasons. 

6 In Amendment No. 2, the Exchange: (1) 

provided additional detail about the Exchange’s 

Continued 

thereunder applicable to a national 

securities exchange. 

The Commission expects, and BSE 

has represented, that should there be 

any changes in the terms of the LLC 

Agreement between the date of the 

publication of this proposal and the 

proposed transfer of BSE’s Units that 

would result in the BSE’s Percentage 

Interest falling below the 20% 

threshold, the Exchange will submit a 

new proposed rule change in order for 

the Commission to consider the transfer 

of Units in light of any changes made to 

the LLC Agreement. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–BSE–2005–

21) is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18615 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52415; File No. SR–BSE–

2005–29] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Order Approving 

a Proposed Rule Change To Amend 

the Exchange’s Trade-Through and 

Locked Markets Rules 

September 13, 2005. 

On August 1, 2005, the Boston Stock 

Exchange, Inc. (‘‘BSE’’), filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

pursuant to Section 10(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to 

implement Amendment No. 15 to the 

Plan for the Purpose of Creating and 

Operating an Intermarket Option 

Linkage 3 by amending Sections 1 and 4 

of chapter XII of the Boston Options 

Exchange Facility (‘‘BOX’’) Rules to add 

a ‘‘trade and ship’’ exception to the 

definition of ‘‘Trade-Through’’ and add 

a ‘‘book and ship’’ exception to the 

provision relating to locked markets, 

respectively. The proposed rule change 

was published for comment in the 

Federal Register on August 10, 2005.4

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

Under the proposed rule change, a 

BOX Options Participant could trade an 

order at a price that is one minimum 

quoting increment inferior to the 

national best bid or offer (‘‘NBBO’’) if a 

Linkage Order 5 is sent 

contemporaneously to the market(s) 

disseminating the NBBO to satisfy all 

interest of the NBBO price. The 

proposed rule change also would 

provide that a BOX Options Participant 

may book an order on BOX that would 

otherwise lock another market if a 

Linkage Order is sent 

contemporaneously to such other 

market to satisfy all interest at the lock 

price and only the remaining portion of 

the order is booked. The BSE proposes 

that, under trade and ship, any 

execution received from the market 

disseminating the NBBO must (pursuant 

to agency obligations) be reassigned to 

the customer order that is underlying 

the Linkage Order that was sent to trade 

with the market disseminating the 

NBBO. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 6 of the Act 6

and the rules and regulations 

thereunder applicable to a national 

securities exchange.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,8 which requires, 

among other things, that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Commission 

believes that the proposed rule change 

should help to implement the Linkage 

Plan by facilitating the ability of BOX 

Options Participants to execute their 

customer orders in a timely manner and 

potentially could decrease the incidence 

of Trade-Throughs and locked markets. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–BSE–2005–

29) is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18618 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52412; File No. SR–BSE–

2005–38] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change and 

Amendment Nos. 1 and 2 Thereto 

Relating to the Exchange’s 

Transaction Fees and Tape a Revenue 

Sharing Program for Electronically 

Routed Cross Trades 

September 13, 2005. 

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 August 

19, 2005, 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, II and III below, which Items 

have been prepared by the Exchange. 

The BSE filed the proposal pursuant to 

Section 19(b)(3)(A)(ii) of the Act,3 and 

Rule 19b–4(f)(2) thereunder,4 as one 

establishing or changing a due, fee or 

other charge imposed by the BSE, which 

renders the proposal effective upon 

filing with the Commission. On 

September 9, 2005, the Exchange filed 

Amendment No. 1 to the proposed rule 

change.5 On September 12, 2005, the 

Exchange filed Amendment No. 2 to the 

proposed rule change.6 The Commission