Document ID: SEC-2008-0549-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Boston Stock Exchange, Inc.
Posted Date: 2008-04-10T04:00Z

[Federal Register: April 10, 2008 (Volume 73, Number 70)]
[Notices]               
[Page 19532-19533]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10ap08-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57618; File No. SR-BSE-2008-21]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc., 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change, 
as Modified by Amendment No. 2 Thereto, Relating to Exchange Fees and 
Charges

April 4, 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 March 27, 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 substantially by the 
Exchange. On April 2, 2008, the BSE filed Amendment No. 1 to the 
proposed rule change.\3\ On April 3, 2008, the Exchange withdrew 
Amendment No.1 and simultaneously filed Amendment No. 2 to the 
proposal.\4\ BSE has designated this proposal as one establishing or 
changing a due, fee, or other charge imposed by the Exchange under 
Section 19(b)(3)(A),\5\ and Rule 19b-4(f)(2) thereunder,\6\ 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 modified by Amendment No. 2, from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 eliminated from the original filing 
reference to Section 7.c. (``Intermarket Linkage Transactions'') of 
the BSE Fee Schedule. Any proposed changes to Section 7.c. of the 
BSE Fee Schedule will be the subject of a separate filing.
    \4\ Amendment No. 2 corrected two typographical errors in the 
rule text set forth in Amendment No. 1. Amendment No. 2 superseded 
and replaced the previously filed Amendment 1 in its entirety.
    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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 Fee Schedule of the Boston 
Options Exchange (``BOX''). The text of the proposed rule change is 
available on the Exchange's Web site (http://www.bostonstock.com ), at 
Exchange's principal office, 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 proposal. 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 Exchange is proposing to amend Section 7 of the BOX Fee 
Schedule. The proposed rule change will remove the ``M or T Non-Penny 
Pilot Classes'' from the BOX Fee Schedule, resulting in the Liquidity 
Make or Take Pricing Structure (``Make or Take'') applying only to 
those classes of options included in the Penny Pilot Program on BOX 
(``Penny Pilot Classes'').\7\
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    \7\ The rules pertaining to the Penny Pilot Program on BOX can 
be found in Section 33 of Chapter V of the BOX Rules. The Exchange 
has notified Participants of the classes included within the Penny 
Pilot Program via Regulatory Circular. See BOXR Regulatory Circular 
2008-06.
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    On November 30, 2007, the Exchange filed a rule proposal with the 
Commission which added to Make or Take the twenty five (25) most 
actively traded options classes on BOX that at that time were not 
included within the Penny Pilot Program (``M or T Non-Penny Pilot 
Classes'').\8\ Recently, nineteen (19) of these M or T Non-Penny Pilot 
Classes were included in an expansion of the Penny Pilot Program.\9\ 
The Exchange does not consider it

[[Page 19533]]

beneficial to investors or the public in general to continue to apply 
the Make or Take pricing structure to the six (6) M or T Non-Penny 
Pilot Classes that were not included in the Penny Pilot Program 
expansion.
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    \8\ See Securities Exchange Act Release No. 56948 (December 12, 
2007), 72 FR 72426 (December 20, 2007) (SR-BSE-2007-52).
    \9\ See Securities Exchange Act Release No. 57566 (March 26, 
2008), 73 FR 18013 (April 2, 2008) (SR-BSE-2008-20). This filing 
added twenty eight (28) of the most actively-traded, multiply-listed 
options classes, according to Options Clearing Corporation volume 
statistics, to the Penny Pilot Program.
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    The Exchange proposes to apply Make or Take only to those classes 
of options that are included within the Penny Pilot Program on BOX. The 
fees and credits associated with the Make or Take pricing structure 
will no longer apply to transactions in any class of options other than 
those included in the Penny Pilot Program. The standard trading fees, 
as delineated in the remainder of the BOX Fee Schedule, shall apply to 
those options classes that this proposal seeks to remove from Make or 
Take.\10\
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    \10\ The BOX Fee Schedule can be found on the BOX Web site at 
http://www.bostonoptions.com.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\11\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act,\12\ in particular, in 
that it is 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.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change establishes or changes a due, 
fee, or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \13\ and subparagraph (f)(2) 
of Rule 19b-4 \14\ thereunder. 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 Act.\15\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(2).
    \15\ 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 April 3, 2008, the date on which BSE filed Amendment 
No. 2. See 15 U.S.C. 78s(b)(3)(C).
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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 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-2008-21 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-2008-21. 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 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 No. SR-BSE-2008-21 and should be 
submitted on or before May 1, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Florence E. Harmon,
Deputy Secretary.
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    \16\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-7503 Filed 4-9-08; 8:45 am]

BILLING CODE 8011-01-P