Document ID: SEC-2007-0212-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Boston Stock Exchange, Inc.
Posted Date: 2007-02-12T05:00Z

[Federal Register: February 12, 2007 (Volume 72, Number 28)]
[Notices]               
[Page 6628-6630]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe07-124]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55235; File No. SR-BSE-2007-05]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Remove All References to a Specific Regulation NMS Trading Phase Date

February 2, 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 January 31, 2007, the Boston Stock Exchange (``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 Exchange has designated the proposed rule change as one 
constituting a stated policy, practice, or interpretation with respect 
to the meaning, administration, or enforcement of an existing rule 
under Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(1) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(1).

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[[Page 6629]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE is proposing to remove references in Chapters XXXVII and 
XXXVIII of the BSE Rules to February 5, 2007, which was the Regulation 
NMS Trading Phase Date as of the date of Commission approval of the 
proposed rule change relating to the second phase of the BeX trading 
system, and replace all such references with the phrase ``Regulation 
NMS Trading Phase Date.'' The Regulation NMS Trading Phase Date is the 
final date for full operation of Regulation NMS-compliant trading 
systems of all automated trading centers (both SRO trading facilities 
and ADF participants) that intend to qualify their quotations for 
trade-through protection under Rule 611 of Regulation NMS, as 
determined by the Commission. 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 BSE 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. 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
    On June 13, 2006 the Exchange filed Amendment No. 3 to SR-BSE-2006-
22 (the ``BeX Facility Filing''), a rule filing submitted in connection 
with the implementation of the first of two phases of BeX, a fully 
automated electronic book for the display and execution of orders in 
securities. On August 25, 2006 SR-BSE-2006-22 was approved by the 
Commission.\5\ On August 3, 2006 the BSE filed, in connection with the 
implementation of the second phase of the BeX trading system and in 
connection with satisfying the requirements of Regulation NMS, SR-BSE-
2006-30. On September 29, 2006 the Commission approved SR-BSE-2006-
30.\6\
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    \5\ See Securities Exchange Act Release No. 54365 (August 25, 
2006), 71 FR 52192 (September 1, 2006).
    \6\ See Securities Exchange Act Release No. 54546 (September 29, 
2006), 71 FR 59161 (October 6, 2006).
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    The purpose of this filing is to remove references in Chapters 
XXXVII and XXXVIII of the BSE Rules to February 5, 2007 as the 
Regulation NMS Trading Phase Date and to replace all references to that 
specific date with the phrase ``Regulation NMS Trading Phase Date.'' 
The Regulation NMS Trading Phase Date is the final date for full 
operation of Regulation NMS-compliant trading systems of all automated 
trading centers (both SRO trading facilities and ADF participants) that 
intend to qualify their quotations for trade-through protection under 
Rule 611 of Regulation NMS, as determined by the Commission. In other 
words, the BSE Rules will no longer reference a date certain for the 
Regulation NMS Trading Phase Date and any occurrence that could have 
taken place or that would have been triggered on February 5, 2007, such 
as the ability for certain order types to be submitted on the BeX, will 
be postponed to coincide with the revised Regulation NMS Trading Phase 
Date scheduled by the Commission. Further, this filing replaces all 
specific references to the February 5, 2007 date contained in BSE-2006-
30 as modified by Amendment 2 to that filing with the phrase Regulation 
NMS Trading Phase Date.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of Section 6(b) of the Act,\7\ in general, and 
furthers the objectives of Section 6(b)(5) of the Act,\8\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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

    Because the foregoing rule change constitutes a stated policy, 
practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(1) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(1).
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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 Exchange 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-2007-05 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 Number SR-BSE-2007-05. 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

[[Page 6630]]

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-2007-05 
and should be submitted on or before March 5, 2007.

    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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Florence E. Harmon
Deputy Secretary
 [FR Doc. E7-2251 Filed 2-9-07; 8:45 am]

BILLING CODE 8010-01-P