Document ID: SEC-2008-0552-0001
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 19533-19534]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10ap08-97]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57613]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Declaration of Effectiveness of the Boston Stock Exchange 
Fingerprinting Plan

April 3, 2008.
    On March 27, 2008, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a Fingerprint Plan (``Plan'') pursuant to Rule 17f-
2(c) \1\ under the Securities Exchange Act of 1934 (``Act'').\2\ A copy 
of the Plan is attached as Exhibit A.
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    \1\ 17 CFR 240.17f-2(c).
    \2\ 15 U.S.C. 78a et seq.
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    The BSE believes that the Plan will facilitate compliance by 
Exchange members with section 17(f)(2) of the Act and Rule 17f-2 
thereunder, by providing a facility for the fingerprints of directors, 
partners, officers and employees of Exchange members to be submitted to 
the Attorney General of the United States or his designee (``Attorney 
General'') and processed electronically.
    Under the Plan, all persons who are seeking registration with the 
BSE or are currently registered with the BSE submit fingerprints and 
identifying information, on paper or electronically, to the Financial 
Industry Regulation Authority, Inc. (``FINRA''), which then forwards 
the fingerprints to the Federal Bureau of Investigation (``FBI'') (the 
fingerprint processing arm of the Attorney General). The FBI identifies 
submitted fingerprints, retrieves relevant criminal history 
information, and returns fingerprint reports to FINRA. BSE members will 
be able to view the status and results of fingerprints, including any 
relevant criminal history information, through FINRA's Web Central 
Registration Depository (Web CRD[supreg]) system after submission to 
the Attorney General.
    FINRA notifies the Exchange if the fingerprint results received by 
FINRA contain information indicating that the

[[Page 19534]]

person is subject to a statutory disqualification. In such an instance, 
the Exchange reviews the fingerprint results to determine the possible 
existence of a statutory disqualification as defined in section 
3(a)(39) of the Act, and takes appropriate action, if necessary, 
concerning eligibility or continued eligibility of the individual for 
employment or association with an Exchange member.
    The Commission has reviewed the procedures detailed in the Plan and 
believes that the Plan is consistent with the public interest and the 
protection of investors. Thus, the Commission declares the Plan 
effective.
    The Commission notes that the securities industry fingerprinting 
procedures are in a state of flux due to rapidly advancing technology. 
In the event that an industry-wide standard is adopted or becomes 
prevalent and in the event that this Plan substantially differs 
therefrom, the Commission would expect the BSE to revise its 
fingerprint plan to incorporate the industry-wide standard.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(17)(iii).
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Florence E. Harmon,
Deputy Secretary.

Exhibit A

Boston Stock Exchange Fingerprinting Plan

    The Boston Stock Exchange, Inc. (``BSE'' or ``Exchange'') submits 
this Fingerprint Plan (``Plan'') pursuant to section 17(f)(2) of the 
Securities Exchange Act of 1934 (``Act'') and Rule 17f-2(c) thereunder.
    The purpose of this Plan is to facilitate compliance by Exchange 
Members with section 17(f)(2) of the Act and Rule 17f-2(c) thereunder, 
by providing a facility for the fingerprints of directors, partners, 
officers and employees of Exchange members to be submitted to the 
Attorney General of the United States or his designee (``Attorney 
General'') and processed electronically.
    The Exchange has established an arrangement with the Financial 
Industry Regulation Authority, Inc. (``FINRA''), to permit all 
individuals that must be registered with, or approved by, the Exchange 
(``registered persons'') to be electronically registered with the 
Exchange through FINRA's Web Central Registration Depository (``Web 
CRD''). The Web CRD is a Web-based system that provides broker-dealers 
and their associated person with ``one-stop filing'' with the 
Commission, FINRA and other self-regulatory organizations and 
regulators. The Web CRD is operated by FINRA and is used by 
participating regulators in connection with registering and licensing 
broker-dealers and their associated persons.
    In connection with the arrangement with FINRA, all persons who are 
seeking registration with the Exchange or are currently registered with 
the Exchange, submit fingerprint cards or fingerprint results to FINRA 
for processing and/or submission to the Attorney General. The Attorney 
General provides FINRA with fingerprint processing results for persons 
seeking registration, and results are provided to the members. FINRA 
notifies the Exchange if the fingerprint results received by FINRA 
contain information indicating that the person is subject to a 
statutory disqualification. In such an instance, the Exchange reviews 
the fingerprint results to determine the possible existence of a 
statutory disqualification as defined in section 3(a)(39) of the Act, 
and takes appropriate action, if necessary, concerning eligibility or 
continued eligibility of the individual for employment or association 
with an Exchange member.
    The Exchange advises its members and member applicants of any fees 
charged in connection with processing of fingerprints pursuant to this 
Plan. The Exchange will file any such Exchange member fees with the 
Commission pursuant to section 19(b) of the Act.
    Copies of fingerprint reports received from the Attorney General 
with respect to fingerprints submitted by the Exchange pursuant to this 
Plan will be maintained by the Exchange in accordance with the 
Exchange's record retention obligations under the Act. Any maintenance 
of fingerprint records by the Exchange shall be for the Exchange's own 
administrative purposes, and the Exchange is not undertaking to 
maintain fingerprint records on behalf of Exchange members pursuant to 
Rule 17f-2(d)(2).
    The Exchange shall not be liable for losses or damages of any kind 
in connection with the fingerprint services, as a result of a failure 
to properly follow the procedures described above, or as a result of 
lost or delayed fingerprint cards, fingerprint records, or fingerprint 
processing results, or as a result of any action by the Exchange or the 
Exchange's failure to take action in connection with this Plan.

[FR Doc. E8-7506 Filed 4-9-08; 8:45 am]

BILLING CODE 8011-01-P