Document ID: SEC-2009-0058-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Boston Stock Exchange, Inc.
Posted Date: 2009-01-13T05:00Z

[Federal Register: January 13, 2009 (Volume 74, Number 8)]
[Notices]               
[Page 1734-1736]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ja09-93]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59211; File No. SR-BSE-2008-56]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change Relating to BOX Rules 
Governing Doing Business With the Public

January 7, 2009.
    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 9, 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 substantially prepared by the 
self-regulatory organization. The Commission is publishing this notice 
to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 Chapter XI of the Boston Options 
Exchange (``BOX'') Rules by replacing the term ``Registered Options and 
Security Futures Principal'' (``ROSFP'') with ``Registered Options 
Principal'' (``ROP''), to modify the confirmation disclosure 
requirements to remain

[[Page 1735]]

consistent with other exchanges, and to eliminate a definition made 
obsolete by an earlier rule change. The text of the proposed rule 
change is available at the principal office of the Exchange, the 
Commission's Public Reference Room, and http://nasdaqtrader.com/
Trader.aspx?id=Boston_Stock_Exchange.

II. Self-Regulatory Organization's Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
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 in 
the places specified in Item IV below. The self-regulatory organization 
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 proposes to amend Chapter XI of the Boston Options 
Exchange (``BOX'') Rules by replacing the term ``Registered Options and 
Security Futures Principal'' (``ROSFP'') with ``Registered Options 
Principal'' (``ROP''). Although ROP was recently changed to ROSFP in 
the BOX Rules, the Exchange believes that the change from ROP to ROSFP 
may have created confusion among BOX participants, and that reverting 
to ROP will alleviate this confusion. Furthermore, the Exchange 
believes that reverting to ROP will provide consistency with the rules 
of other options exchanges, most of which use ROP rather than ROSFP.\3\ 
The Exchange notes that the reversion to ROP does not affect the 
qualifications required to transact options business with the public.
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    \3\ See Securities Exchange Act Release No. 58932 (November 12, 
2008), 73 FR 69696 (November 19, 2008) (SR-FINRA-2008-032) (changing 
the term ``Registered Options and Security Futures Principal'' to 
``Registered Options Principal''). See also Securities Exchange Act 
Release No. 58129 (July 9, 2008), 73 FR 40895 (SR-ISE-2008-21); 
Securities Exchange Act Release No. 57738 (April 29, 2008), 73 FR 
25805 (May 7, 2008) (SR-AMEX-2007-129); and Securities Exchange Act 
Release No. 56971 (December 14, 2007), 72 FR 72804 (December 21, 
2007) (SR-CBOE-2007-106) (approving elimination of the positions and 
titles of Senior Registered Options Principal and Compliance 
Registered Options Principal).
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    The Exchange also proposes amending Chapter XI, Section 13 of the 
BOX Rules to clarify that an options confirmation need not disclose the 
exchange or exchanges on which an options transaction is executed. The 
rule will continue to require that written confirmations contain a 
description of each transaction in the options contract, the underlying 
security, the type of option, the option expiration month, exercise 
price, number of option contracts, premium, commissions, date of 
transaction and settlement date, and shall indicate whether the 
transaction is a purchase or sale and whether a principal or agency 
transaction. The confirmation shall also distinguish by appropriate 
symbols between Exchange transactions and other transactions in options 
contracts. This change will maintain consistency with other exchanges 
which have recently filed similar rule proposals.\4\
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    \4\ See Securities Exchange Act Release No. 58980 (November 19, 
2008), 73 FR 72091 (November 26, 2008) (SR-CBOE-2008-61). See also 
Securities Exchange Act Release No. 58932 (November 12, 2008), 73 FR 
69696 (November 19, 2008) (SR-FINRA-2008-032) (approving change 
clarifying confirmation disclosure requirements).
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    Lastly, the Exchange proposes elimination of the definition of 
``closing purchase transaction'' as defined in Chapter I, Section 1 of 
the BOX Rules. The term ``closing purchase transaction'' does not 
appear in any other provision of the BOX Rules. Therefore, the 
definition is unnecessary.
2. Statutory Basis
    The Exchange believes that the proposed change is consistent with 
the requirements of Section 6(b) of the Act,\5\ in general, and Section 
6(b)(5) of the Act,\6\ in particular, in that it will promote just and 
equitable principles of trade, facilitate transactions in securities, 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and protect investors and the 
public interest. Specifically, the Exchange believes that the proposed 
rule change will further the purposes of the Act by clarifying the use 
of certain terms consistent with their use by other self-regulatory 
organizations, and by clarifying the Exchange's options confirmation 
procedure rules.
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    \5\ 15 U.S.C. 78(f)(b).
    \6\ 15 U.S.C. 78(f)(b)(5).
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B. Self-Regulatory Organization's Statement of 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (a) By order approve such proposed rule change, or
    (b) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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.stml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-BSE-2008-56 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BSE-2008-56. The 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

[[Page 1736]]

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, located at 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 filings 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-2008-56 and should be submitted on or before 
February 3, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-439 Filed 1-12-09; 8:45 am]

BILLING CODE 8011-01-P