Document ID: SEC-2006-1225-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Boston Stock Exchange, Inc.
Posted Date: 2006-09-22T04:00Z

[Federal Register: September 22, 2006 (Volume 71, Number 184)]
[Notices]               
[Page 55530-55532]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se06-158]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54467; File No. SR-BSE-2006-37]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change, 
and Amendments No. 1 and No. 2 Thereto, To Re-Establish the Market 
Opening Pilot Program

September 18, 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 September 1, 2006, 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 by the BSE. On September 
8, 2006, the BSE filed Amendment No. 1 to the proposed rule change. On 
September 12, 2006, the BSE withdrew Amendment No. 1. On September 12, 
2006, the BSE filed Amendment No. 2 to the proposed rule change.\3\ 
Pursuant to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(6) 
thereunder,\5\ the BSE has designated this proposal as ``non-
controversial,'' which renders the proposed rule change effective 
immediately 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\ In Amendment No. 2 the BSE requested the Commission waive 
the 5-day pre-filing notice requirement and 30-day operative date 
delay contained in Rule 19b-4(f)(6)(iii), and made additional 
clarifications to the proposal.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The BSE is proposing to amend its rules to extend from September 1, 
2006 to August 6, 2007 the pilot program related to market opening 
procedures on the Boston Options Exchange facility (``BOX''). That 
pilot program expired on August 6, 2006.\6\ The only change to the 
pilot program is an extension of the effective date from September 1, 
2006 to August 6, 2007. The BSE does not

[[Page 55531]]

propose making any substantive changes to the pilot program.
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    \6\ The BSE filed another proposed rule, SR-BSE-2006-36, to 
retroactively re-establish the market opening procedures pilot 
program for the time period August 6, 2006 through September 1, 
2006.
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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 BSE included statements 
concerning the purpose of and basis for the proposed rule change, as 
amended, 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. 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 the original rule filing and Amendment No. 2 to the 
proposed rule is to re-establish BOX's market opening procedures pilot 
program which lapsed on August 6, 2006, for the time period September 
1, 2006 through August 6, 2007.\7\ Since approval of the initial pilot 
program, BOX has followed the pilot program market opening procedures. 
Amendment No. 2 requests the Commission waive the standard five-day 
pre-filing and 30-day operative delay requirements as specified in Rule 
19b-4(f)(6)(iii) of the Act,\8\ in order to re-establish the pilot 
program immediately. Amendment No. 2 also provides additional 
clarification to the original filing.
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    \7\ See supra footnote 6.
    \8\ 17 CFR 240.19b-4(f)(6)(iii).
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2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b) \9\ of the Act in general, and Section 
6(b)(5) \10\ of the Act in particular, that an exchange have rules that 
are designed to prevent fraudulent and manipulative practices, to 
promote just and equitable principles of trade, 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. In 
particular, the proposed rule change, as amended, will re-establish the 
market opening procedures pilot program, which provides a quick, 
efficient, fair and orderly market opening process.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The BSE does not believe that the proposed rule change, as amended, 
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

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    This proposed rule change is filed pursuant to paragraph (A) of 
Section 19(b)(3) of the Act \11\ and Rule 19b-4(f)(6) \12\ thereunder. 
The proposed rule change, as amended, does not significantly affect the 
protection of investors or the public interest, does not impose any 
significant burden on competition, and, by its terms, does not become 
operative for 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate. At any time within 60 
days of the filing of the proposed rule change, the Commission may 
summarily abrogate such rule change, as amended, 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.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ See 15 U.S.C. 78(b)(3)(C). For the purpose of calculating 
the 60-day abrogation period, the Commission considers the proposed 
rule change to have been filed on September 12, 2006, the date the 
BSE filed Amendment No. 2.
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    The BSE requests the Commission waive the standard five-day pre-
filing and thirty-day operative delay requirements as specified in Rule 
19b-4(f)(6)(iii) \14\ so that BOX has a market opening procedure which 
commences immediately. The Commission waives the 5-day pre-filing 
requirement. In addition, the Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and 
the public interest because it will allow BOX to reinstate the opening 
procedures rules on a pilot basis immediately.\15\ For these reasons, 
the Commission designates the proposal, as amended, to be effective and 
operative upon filing with the Commission.
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    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ For the purpose of waiving the 30-day operative delay, the 
Commission has considered the proposed rule change's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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-2006-37 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-2006-37. 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, as 
amended, 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-2006-37 and 
should be submitted on or before October 13, 2006.

[[Page 55532]]

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06-8038 Filed 9-21-06; 8:45 am]

BILLING CODE 8010-01-P