Document ID: SEC-2008-0106-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Boston Stock Exchange, Inc.
Posted Date: 2008-01-22T05:00Z

[Federal Register: January 22, 2008 (Volume 73, Number 14)]
[Notices]               
[Page 3767-3769]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22ja08-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57152; File No. SR-BSE-2007-55]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Exchange Fees and Charges To Be 
Assessed in Connection With the Implementation of an Electronic 
Registration Process

 January 15, 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 December 21, 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, II 
and III below, which Items have been prepared substantially by the 
Exchange. On January 11, 2008, BSE filed Amendment No. 1 to the 
proposed rule change. BSE has designated this proposal as one 
establishing or changing a member due, fee, or other charge imposed by 
the Exchange under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-
4(f)(2) 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 change, as amended, 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)(ii).
    \4\ 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 BSE proposes to amend the BSE Fee Schedule and the Boston 
Options Exchange (``BOX'') Fee Schedule in order to adopt certain fees 
to be charged

[[Page 3768]]

to all active members \5\ and to all member and participant 
organizations (collectively, the ``members'') associated with the 
implementation of an electronic registration process through the 
Financial Industry Regulatory Authority's (``FINRA'') Web Central 
Registration Depository (``Web CRD''). The text of the proposed rule 
change is available at http://www.bostonstock.com, the principal 

offices of the Exchange, and the Commission's Public Reference Room.
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    \5\ Because BSE ceased operations of its BeX equity market on 
September 5, 2007, the only active members that this now applies to 
are those members of BOX.
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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 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
    The purpose of the proposed rule change is to adopt fees associated 
with the implementation of an electronic registration process through 
FINRA's Web CRD, which should, in turn, create a more efficient 
registration process by migrating from a manual paper-based Exchange 
procedure for registration to a Web-based registration process that is 
operated by FINRA. The proposed fees are similar to those fees charged 
by other self-regulatory organizations that use FINRA's Web CRD.\6\
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    \6\ See Securities Exchange Act Release Nos. 51641 (May 2, 
2005), 70 FR 24155 (May 6, 2005) (SR-PCX-2005-49); 48066 (June 19, 
2003), 68 FR 38409 (June 27, 2003) (SR-AMEX-2003-49); 45112 
(November 28, 2001), 66 FR 63086 (December 4, 2001) (SR-NYSE-2001-
47); and 53688 (April 20, 2006), 71 FR 24885 (April 27, 2006) (SR-
Phlx-2006-24).
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    Specifically, the Exchange proposes to adopt the following fees 
that will be imposed upon all members in connection with their required 
participation in Web CRD: (a) A FINRA CRD Processing Fee of $85.00; (b) 
a FINRA Disclosure Processing Fee of $95.00; (c) a FINRA Annual System 
Processing Fee of $30.00; and (d) fingerprinting fees that will vary 
depending on the submission: For a first card submission the fee will 
be $30.25; for a second card submission the fee will be $13.00; for a 
third card submission the fee will be $30.25; for processing 
fingerprint results where the member had prints processed through a 
self-regulatory organization and not FINRA, the fee will be $13.00 
(collectively, the ``FINRA Fees''). The Exchange also proposes to 
adopt: (e) An individual initial registration fee of $60.00; (f) an 
individual transfer fee for $40.00 with a transfer time period of 
thirty (30) days; (g) an individual renewal fee for $50.00; and (h) an 
individual termination fee of $30.00 (collectively, the ``Exchange 
Fees''). FINRA will process the fingerprint cards and will make the 
results available to the Exchange, its members, and member and 
participant organizations via Web CRD.
    Members and participant organizations will be instructed to pay the 
FINRA Fees and the Exchange Fees associated with Web CRD directly to 
FINRA through Web CRD. FINRA will retain the FINRA Fees and remit the 
Exchange Fees it collects to BSE.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\7\ in general, and furthers the 
objectives of section 6(b)(4) of the Act,\8\ 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 in connection with their use of Web CRD. The fees 
are imposed upon all members equally. The Exchange believes the 
proposed fees are reasonable in that they are similar to those charged 
by other self-regulatory organizations that use FINRA's Web CRD.\9\
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ See note 6, supra.
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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 
result in 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 written 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 has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \10\ and Rule 
19b-4(f)(2) \11\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed on members by the Exchange. Accordingly, 
the proposal is effective upon filing with the Commission. 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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ 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 January 11, 2008, the date on which the Exchange 
filed Amendment No. 1.
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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-2007-55 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-2007-55. 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

[[Page 3769]]

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 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 wish to make publicly available. All submissions 
should refer to File Number SR-BSE-2007-55 and should be submitted on 
or before February 12, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-997 Filed 1-18-08; 8:45 am]

BILLING CODE 8011-01-P