Document ID: SEC-2009-0265-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Boston Stock Exchange, Inc.
Posted Date: 2009-02-27T05:00Z

[Federal Register: February 27, 2009 (Volume 74, Number 38)]
[Notices]               
[Page 9012-9013]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27fe09-127]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59434; File No. SR-BSE-2008-56]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change Relating to BOX Rules 
Governing Doing Business With the Public

February 23, 2009.
    On December 9, 2008, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 
thereunder.\2\ The proposed rule change was published for comment in 
the Federal Register on January 13, 2009.\3\ The Commission received no 
comments on the proposed rule change. This order approves the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 59211 (January 7, 
2009), 74 FR 1734 (January 13, 2009).
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I. Description of the Proposed Rule Change

    The Exchange proposed to amend Chapter XI of the Boston Options 
Exchange (``BOX'') Rules by replacing the term ``Registered Options and 
Security Futures Principal'' (``ROSFP'') with ``Registered Options 
Principal'' (``ROP''). Although ROP was recently changed to ROSFP in 
the BOX Rules, the Exchange believes that the change from ROP to ROSFP 
may have created confusion among BOX participants, and that reverting 
to ROP will alleviate this confusion. Furthermore, the Exchange 
believes that reverting to ROP will provide consistency with the rules 
of other options exchanges, most of which use ROP rather than ROSFP.\4\ 
The Exchange notes that the reversion to ROP does not affect the 
qualifications required to transact options business with the public.
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    \4\ See Securities Exchange Act Release No. 58932 (November 12, 
2008), 73 FR 69696 (November 19, 2008) (SR-FINRA-2008-032) (changing 
the term ``Registered Options and Security Futures Principal'' to 
``Registered Options Principal''). See also Securities Exchange Act 
Release No. 58129 (July 9, 2008), 73 FR 40895 (SR-ISE-2008-21); 
Securities Exchange Act Release No. 57738 (April 29, 2008), 73 FR 
25805 (May 7, 2008) (SR-Amex-2007-129); and Securities Exchange Act 
Release No. 56971 (December 14, 2007), 72 FR 72804 (December 21, 
2007) (SR-CBOE-2007-106) (approving elimination of the positions and 
titles of Senior Registered Options Principal and Compliance 
Registered Options Principal).
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    The Exchange also proposed amending Chapter XI, Section 13 of the 
BOX Rules to clarify that an options confirmation need not disclose the 
exchange or exchanges on which an options transaction is executed. The 
rule will continue to require that written confirmations contain a 
description of each transaction in the options contract, the underlying 
security, the type of option, the option expiration month, exercise 
price, number of option contracts, premium, commissions, date of 
transaction and settlement date, and shall indicate whether the 
transaction is a purchase or sale and whether a principal or agency 
transaction. The confirmation shall also distinguish by appropriate 
symbols between Exchange transactions and other transactions in options 
contracts. This change will maintain consistency with other exchanges 
which have recently filed similar rule proposals.\5\
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    \5\ See Securities Exchange Act Release No. 58980 (November 19, 
2008), 73 FR 72091 (November 26, 2008) (SR-CBOE-2008-61). See also 
Securities Exchange Act Release No. 58932 (November 12, 2008), 73 FR 
69696 (November 19, 2008) (SR-FINRA-2008-032) (approving change 
clarifying confirmation disclosure requirements).
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    Lastly, the Exchange proposed elimination of the definition of 
``closing purchase transaction'' as defined in Chapter I, Section 1 of 
the BOX Rules. The term ``closing purchase transaction'' does not 
appear in any other provision of the BOX Rules. Therefore, the 
definition is unnecessary.

II. Discussion and Findings

    After careful review of the proposed rule change, the Commission 
finds that the proposed rule change 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, facilitate transactions in securities, 
remove

[[Page 9013]]

impediments to and perfect the mechanism of a free and open market and 
a national market system, and protect investors and the public 
interest.\8\ The Commission believes that the proposal is consistent 
with Section 6(b)(5) of the Exchange Act because the proposed rule 
change will clarify the use of certain terms consistent with their use 
by other self-regulatory organizations, and also will clarify the 
Exchange's options confirmation procedure rules.
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    \6\ 15 U.S.C. 78(f)(b).
    \7\ 15 U.S.C. 78(f)(b)(5).
    \8\ In approving this proposal, the Commission has considered 
the proposed rule change's impact on efficiency, competition, and 
capital formation. See 15 U.S.C. 17c(f).
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III. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-BSE-2008-56) be, and hereby is, 
approved.\9\
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-4183 Filed 2-26-09; 8:45 am]

BILLING CODE 8011-01-P