Document ID: SEC-2007-0444-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Boston Stock Exchange, Inc.
Posted Date: 2007-03-23T04:00Z

[Federal Register: March 23, 2007 (Volume 72, Number 56)]
[Notices]               
[Page 13837-13839]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23mr07-132]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55486; File No. SR-BSE-2007-12]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change To Apply Non-BeX Executed Trade Fee Retroactively

March 16, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons and to approve the 
proposed rule change on an accelerated basis.
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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 BSE proposes to make SR-BSE-2007-11, a rule filing 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

[[Page 13838]]

which was executed on Boston Equities Exchange (``BeX'') and part of 
which was executed at an away Trading Center, retroactively effective 
for the time period February 1, 2007 through March 2, 2007. The text of 
the proposed rule change is available on the Exchange's Web site 
(http://www.bostonstock.com) and from 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 III 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 SR-BSE-2006-44, a proposed rule 
change that amended the existing BSE fee schedule and established a fee 
schedule for the BeX, a facility of the Exchange.\3\ This proposed rule 
change, among other things, deleted 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.
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    \3\ See Securities Exchange Act Release No. 54795 (November 20, 
2006), 71 FR 68850 (November 28, 2006) (Notice of Filing and 
Immediate Effectiveness of SR-BSE-2006-44).
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    On March 2, 2007, the BSE filed SR-BSE-2007-11, a proposed rule 
change amending 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.\4\ Specifically, the BSE fee 
schedule contained a transaction fee titled ``Floor Brokered non-BSE 
executions.'' The fee for Floor Brokered non-BSE executions was $.0005, 
or $.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 a Trading Center other than the BSE 
on a BSE Purchase & Sale Blotter, in other words, in order to 
consolidate the transaction information on single report, the BSE 
performed the necessary back office operations on behalf of the 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.
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    \4\ See Securities Exchange Act Release No. 55450 (March 13, 
2007) (Notice of Filing and Immediate Effectiveness of SR-BSE-2007-
11).
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    In SR-BSE-2007-11 the Exchange proposed charging that same fee, 
$.05 per 100 shares, for performing that same service, on behalf of BSE 
members, including BeX EAMs, 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 fee would be titled ``Non-BeX 
executed trades'' and would appear on the BeX fee schedule.\5\
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    \5\ Id.
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    The purpose of the instant filing is to make the Non-BeX executed 
trade fee retroactively effective for the time period February 1, 2007 
through March 2, 2007.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\6\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act,\7\ in particular, in that 
it is designed 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 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. 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-2007-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

    All submissions should refer to File No. SR-BSE-2007-12. 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 at the Commission's Public Reference Room. Copies of such 
filing will also be available for inspection and copying at the 
principal office of the Exchange. 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 with to make available publicly. All submissions should refer to 
the file number in the caption above and should be submitted on or 
before April 13, 2007.

[[Page 13839]]

IV. Commission Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\8\ In 
particular, the Commission finds that proposed rule change is 
consistent with Section 6(b)(4) of the Act, which requires that the 
rules of the Exchange be designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities.\9\ The 
Commission believes that allowing the Exchange to charge the Non-BeX 
executed trade fee retroactively for the time period February 1, 2007 
through March 2, 2007, is appropriate because this fee would be charged 
only to those members who affirmatively request that the Exchange 
include information on the BSE Purchase & Sale Blotter with respect to 
those executions resulting from a portion of an order sent to BeX being 
routed to an away Trading Center.\10\ Further, the Commission notes 
that the same fee for substantively the same service had been charged 
to BSE members prior to the changes made to the fee schedule in SR-BSE-
2006-44,\11\ and the fee was reinstated pursuant to SR-BSE-2007-11, 
beginning March 2, 2007.\12\
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    \8\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ According to the Exchange, other information included on 
the BSE Purchase & Sale Blotter in PDF format is provided to members 
free of charge.
    \11\ See note 3, supra.
    \12\ See note 4, supra.
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    Accordingly, the Commission finds good cause pursuant to Section 
19(b)(2) of the Act \13\ for approving the proposed rule change prior 
to the thirtieth day after publication of the proposed rule change in 
the Federal Register. As noted above, the Commission believes that the 
Non-BeX executed trade fee is substantively similar to the Floor 
Brokered Execution fee, which was previously charged to BSE members for 
providing substantially the same service for which the Non-BeX executed 
trade fee would be charged to BSE members, and therefore no novel 
regulatory issues related to this fee are present.
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    \13\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\14\ that the proposed rule change (SR-BSE-2007-12), is hereby 
approved on an accelerated basis.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-5309 Filed 3-22-07; 8:45 am]

BILLING CODE 8010-01-P