Document ID: SEC-2006-1493-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Boston Stock Exchange, Inc.
Posted Date: 2006-11-21T05:00Z

[Federal Register: November 21, 2006 (Volume 71, Number 224)]
[Notices]               
[Page 67408-67410]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21no06-76]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54747; File No. SR-BSE-2006-51]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Exchange Fees and Charges

November 14, 2006.
    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 October 31, 2006, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with

[[Page 67409]]

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 BSE. On November 13, 2006, the BSE filed Amendment 
No. 1 to the proposed rule change.\3\ 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,\4\ and Rule 19b-4(f)(2) thereunder,\5\ 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange revised the proposed rule 
text to correct inadvertent underlining and add additional 
clarifying language to the discussion of the proposed rule change.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 5 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 Exchange proposes to amend the existing BSE fee schedules to 
reflect a new Designated Examining Authority (``DEA'') fee to be 
charged to Members for whom the BSE is the primary DEA. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.bostonstock.com
) and at the Commission's Public Reference Room. 

Below is the text of the proposed rule change, as amended. Proposed new 
language is italicized; proposed deletions are [bracketed].
* * * * *

MEMBERSHIP AND OTHER FEES

(1) Membership

Membership Dues--$ 1,000 per membership per quarter
Clearing Corporation Deposit--$ 6,000 (refundable)
Account Maintenance--$200 per month
SRO Fee--$100 per month
DEA Fee--$ [600]2,085 per month for firms where the BSE is the primary 
DEA, $400 per month for firms where the BSE is not the primary DEA
BSE Rules and Guides--CCH annual subscription rate
Transfer of Membership--$500 for intra-firm or inter-firm
Membership Lease Fee--1% per month of last consummated membership (for 
seats leased from BSE Treasury only)--sale, billed quarterly
* * * * *

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 BSE included statements 
concerning the purpose of, and basis for, the proposed rule change, as 
amended, and discussed any comments it received regarding the proposed 
rule change, as amended. The text of these statements may be examined 
at the places specified in Item IV below. The BSE 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 this filing is to amend the existing BSE fee 
schedules to reflect the new DEA fee to be charged to Members for whom 
the BSE is the primary DEA. The BSE has entered into an agreement (the 
``Agreement'') with the NASD whereby the NASD has agreed to provide 
services to the BSE in support of the BSE's exercise of its regulatory 
authority as a self-regulatory organization, or ``SRO,'' as that term 
is defined in Section 3(a)(26) of the Act.\6\ The Agreement does not 
allocate regulatory responsibilities pursuant to Rule 17d-2 under the 
Act, which responsibilities will remain with the BSE. In accordance 
with the Agreement, the NASD shall perform certain services for Member 
firms for whom the BSE is the DEA.
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    \6\ 15 U.S.C. 78c(a)(26).
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    The BSE will charge the Member firms for whom the BSE is the 
primary DEA approximately $25,000 annually to provide the necessary 
services for each BSE Member for whom the BSE is the primary DEA. The 
$25,000 fee will be charged on a monthly basis over a twelve month time 
period. The BSE proposes amending its existing fee schedule to increase 
the DEA fee for Members for whom the BSE is the primary DEA from 
$600.00 per month to $2085.00 per month. The increase in the DEA fee is 
necessary in order to enable the BSE to properly carry out its 
regulatory responsibilities. The DEA fee for Members for whom the BSE 
is the primary DEA is essentially a pass through of the $25,000 annual 
fee charged by the NASD to the BSE in connection with the services the 
NASD will provide in support of the BSE's exercise of its regulatory 
authority.
2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with the requirements of Section 6(b) of the Act, in 
general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of 
the Act,\7\ in particular, in that it provides for the equitable 
allocation of reasonable dues, fees and other charges and is designed 
to promote just and equitable principles of trade, and to protect 
investors and the public interest in that it is designed to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism for a free and open market and a national market 
system, and, in general, to protect investors and the public 
interest.\8\
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    \7\ 15 U.S.C. 78f(b)(4) and (b)(5).
    \8\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on November 13, 2006, the date on which the BSE filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, 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, as amended, has been designated 
as a fee change pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 
19b-4(f)(2) thereunder,\10\ 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. At any time within 60 
days of the filing of the proposed rule change, as amended, 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

[[Page 67410]]

investors, or otherwise in furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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-2006-51 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-2006-51. 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. 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-2006-51 and should be submitted on or before 
December 12, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-19622 Filed 11-20-06; 8:45 am]

BILLING CODE 8011-01-P