Document ID: SEC-2008-1194-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Boston Stock Exchange, Inc.
Posted Date: 2008-08-28T04:00Z

[Federal Register: August 28, 2008 (Volume 73, Number 168)]
[Notices]               
[Page 50845-50846]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au08-106]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58408; File No. SR-BSE-2008-42]

 
Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Boston Stock Exchange, Inc. Relating to the Appointment 
of Market Makers on the Boston Options Exchange Facility

August 22, 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 August 19, 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, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend section 5 (Obligations of Market 
Makers) of Chapter VI of the Rules of the Boston Options Exchange 
Group, LLC (``BOX'').

[[Page 50846]]

The text of the proposed rule change is available on the Exchange's 
Internet Web site at http://www.bostonstock.com, from the principal 
office of the Exchange and from the Commission.

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 self-regulatory organization 
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 self-regulatory organization 
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 purpose of the proposed rule change is to remove certain 
language from section 5(a)(viii) of Chapter VI of the BOX Rules to 
eliminate any potential for confusion between this and section 4(f) of 
Chapter VI of the BOX Rules.
    Currently, section 4(f) of Chapter VI states that ``Market Makers 
may withdraw from trading an options class that is within their 
appointment by providing the BOX with three business days' written 
notice of such withdrawal.'' However, Section 5(a)(viii) states that 
``[o]rdinarily, Market Makers are expected to * * * [m]aintain active 
markets in all classes in which the Market Maker is appointed for a 
period of at least six months.'' To address this potential ambiguity, 
the Exchange seeks to remove the language ``for a period of at least 
six months'' from section 5(a)(viii). As a result, a Market Maker 
seeking to withdraw from a particular appointment will be required to 
provide BOX with at least three business days written notice of such 
withdrawal, as stated in section 4(f), regardless of how long the 
Market Maker has held such appointment.
    In addition, the proposed rule change will result in certain 
changes to the formatting and text of Supplementary Material to Chapter 
VI, Section 5(c)(ii) of the BOX Rules. The rule change is non-
substantive, and it will result in a closer universal format throughout 
the BOX Rules.
2. Basis
    The Exchange believes that the proposal is consistent with the 
requirements of section 6(b) of the Act,\3\ in general, and section 
6(b)(5) of the Act,\4\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, 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 proposed rule change will create 
greater clarity within the BOX Rules concerning Market Maker 
appointments in specific options classes and requests to withdraw from 
such appointments.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (a) By order approve such proposed rule change, or
    (b) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2008-42 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BSE-2008-42. 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 the filing also will be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-
2008-42 and should be submitted on or before September 18, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19945 Filed 8-27-08; 8:45 am]

BILLING CODE 8010-01-P