Document ID: SEC-2007-0415-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Boston Stock Exchange, Inc.
Posted Date: 2007-03-20T04:00Z

[Federal Register: March 20, 2007 (Volume 72, Number 53)]
[Notices]               
[Page 13147-13149]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr07-100]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55450; File No. SR-BSE-2007-11]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Existing Fee Schedules

March 13, 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 March 2, 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, II 
and III below, which Items have been substantially prepared by the 
Exchange. The BSE has designated this proposal as one changing a due, 
fee, or other charge under 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

[[Page 13148]]

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 proposes amending the Boston Equities Exchange (``BeX'') 
fee schedule to include a transaction fee to be charged to BSE Members 
who request a BeX purchase & Sale Blotter reflecting the transaction 
information related to the execution of a single order, part of which 
was executed on BeX and part of which was executed at an away Trading 
Center. The text of the proposed rule change is available at http://www.bostonstock.com
, at the BSE, 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 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 20, 2006, the BSE filed BSE-2006-44, a rule filing that 
amended the existing BSE fee schedule and established a fee schedule 
for the BeX, a facility of the Exchange. BSE-2006-44 resulted in, among 
other things, the deletion of all Transaction Fees, Electronic File 
Access and Processing Fees, and Floor Operation Fees from the BSE fee 
schedule. The Transaction Fees and Electronic File Access and 
Processing Fees that were deleted from the BSE fee schedule were 
transferred to the BeX fee schedule. The purpose of this proposed rule 
change is to amend the BeX fee schedule to include a transaction fee 
that was deleted from the BSE fee schedule but not transferred to the 
BeX fee schedule as a part of BSE-2006-44. Specifically, the BSE fee 
schedule contained a transaction fee titled ``Floor Brokered non-BSE 
executions.'' The fee for Floor Brokered non-BSE executions was 
$0.0005, or $0.05 per 100 shares. BSE Members were charged the Floor 
Brokered non-BSE execution fee when the Member requested that the 
information related to the execution of a single order, only a part of 
which had been executed on the BSE with the remaining portion executed 
at an away Trading Center, be reflected on a BSE Purchase & Sale 
Blotter rather than having only the portion executed at the BSE 
reflected on the BSE Purchase & Sale Blotter. In order to include the 
information related to the portion of an order executed at the Trading 
Center other than the BSE on a BSE Purchase & Sale Blotter, in other 
words, in order to consolidate the transaction information on a single 
report, the BSE performed the necessary back office operations on 
behalf of the BSE Member so the transaction information, including the 
information related to the portion of the order executed at an away 
Trading Center, would appear on a BSE Purchase & Sale Blotter 
reflecting the transaction information related to the execution of a 
single order, part of which was executed on BeX and part of which was 
executed at an away Trading Center. The fee would now be titled ``Non-
BeX executed trades'' and would appear on the BeX fee schedule. As 
such, what had been known as the Floor Brokered non-BSE executions fee 
on the BSE schedule will now appear on the BeX fee schedule as the Non-
BeX executed trades fee and will apply in the BeX environment.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of Section 6(b) of the Act,\5\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act,\6\ in 
particular, in that it is designated to provide for the equitable 
allocation of reasonable dues, fees and other charges among Exchange 
members and issuers and other persons using Exchange facilities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-
4(f)(2) thereunder,\8\ because it establishes or changes a due, fee or 
other charge imposed by the Exchange. Accordingly, the proposal will 
take effect upon filing with the Commission.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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    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.

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-2007-11 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-2007-11. 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

[[Page 13149]]

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 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-
2007-11 and should be submitted on or before April 10, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4976 Filed 3-19-07; 8:45 am]

BILLING CODE 8010-01-P