Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Approving Proposed Rule Change Relating to Listing Fees, 45450-45451 [05-15485]

Download as PDF 45450 Federal Register / Vol. 70, No. 150 / Friday, August 5, 2005 / Notices simultaneously transmitted a 10contract P/A Order to Exchange B to pay $1.95. Assuming an execution is obtained from Exchange B, the customer would receive the 10-contract fill and the rest of the customer’s order will be displayed as a $1.95 bid on Exchange A. The national best offer would likely be $2.00. As proposed, this would not be deemed a ‘‘locked’’ market for purposes of the Plan. 2. Statutory Basis The Amex believes that the proposed rule change is consistent with Section 6(b) of the Act 5 in general and furthers the objectives of Section 6(b)(5) of the Act,6 in particular, in that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change does not 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 No written comments were solicited or received with respect to 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 Amex 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, 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2005–046 on the subject line. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.7 Jill M. Peterson, Assistant Secretary. [FR Doc. E5–4225 Filed 8–4–05; 8:45 am] BILLING CODE 8010–01–P U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). 17:08 Aug 04, 2005 7 17 Jkt 205001 [Release No. 34–52132; File No. SR–BSE– 2005–15] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Approving Proposed Rule Change Relating to Listing Fees July 27, 2005. I. Introduction On May 31, 2005, the Boston Stock Paper Comments Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange • Send paper comments in triplicate Commission (‘‘SEC’’ or ‘‘Commission’’), to Jonathan G. Katz, Secretary, pursuant to section 19(b)(1) of the Securities and Exchange Commission, Securities Exchange Act of 1934 100 F Street, NE., Washington, DC (‘‘Act’’),1 and Rule 19b–4 thereunder,2 a 20549–9303. proposed rule change to amend its All submissions should refer to File Listing Fees schedule by increasing its listing fees. The proposed rule change Number SR–Amex–2005–046. This file was published in the Federal Register number should be included on the subject line if e-mail is used. To help the on June 24, 2005.3 No comments were received on the proposed rule change. Commission process and review your This order approves the proposed rule comments more efficiently, please use only one method. The Commission will change. post all comments on the Commission’s II. Description of the Proposal Internet Web site (https://www.sec.gov/ The Exchange proposes to amend its rules/sro.shtml). Copies of the Listing Fees schedule by increasing its submission, all subsequent listing fees. The Exchange proposes to amendments, all written statements increase its original listing fee, annual with respect to the proposed rule listing maintenance fee and listing fee change that are filed with the for additional shares, among other Commission, and all written things.4 communications relating to the III. Discussion and Commission proposed rule change between the Commission and any person, other than Findings The Commission finds that the those that may be withheld from the proposed rule change is consistent with public in accordance with the the Act and the rules and regulations provisions of 5 U.S.C. 552, will be thereunder applicable to a national available for inspection and copying in securities exchange,5 particularly the Commission’s Public Reference section 6(b) of the Act,6 in general, and Room. Copies of the filing also will be furthers the objectives of section 6(b)(4) available for inspection and copying at of the Act,7 in particular, in that it the principal office of the Amex. All provides for the equitable allocation of comments received will be posted reasonable dues, fees, and other charges without change; the Commission does among its members and issuers and not edit personal identifying other persons using its facilities. information from submissions. You The Commission notes that the should submit only information that Exchange has not raised its listing fees you wish to make available publicly. All since 1991.8 According to the Exchange, submissions should refer to File Number SR–Amex–2005–046 and 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. should be submitted on or before 3 See Securities Exchange Act Release No. 51881 August 26, 2005. 5 15 VerDate jul<14>2003 SECURITIES AND EXCHANGE COMMISSION PO 00000 CFR 200.30–3(a)(12). Frm 00098 Fmt 4703 Sfmt 4703 (June 20, 2005), 70 FR 36674. 4 The Exchange’s revised Listing Fees schedule was fully set forth in the proposed rule change published for comment. See id. 5 In approving this proposed rule change, the Commission has considered the proposed rule’s impact of efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(4). 8 See Securities Exchange Act Release No. 29276 (June 5, 1991), 56 FR 27060 (June 12, 1991). E:\FR\FM\05AUN1.SGM 05AUN1 Federal Register / Vol. 70, No. 150 / Friday, August 5, 2005 / Notices the increased fees better reflect the Exchange’s costs and the value of the services that the Exchange provides. Given the passage of time since the Exchange last raised its listing fees, the actual dollar amount of the fee increases being proposed,9 and the fact that no commenters objected to the Exchange’s proposed fees, the Commission believes the increases in fees are reasonable. IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,10 that the proposed rule change (SR–BSE–2005– 15) is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Jill M. Peterson, Assistant Secretary. [FR Doc. 05–15485 Filed 8–4–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52169; File No. SR–BSE– 2005–21] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Proposal To Transfer a Portion of Ownership Interest in Boston Options Exchange Facility July 29, 2005. 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 July 27, 2005, 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to transfer a portion of its ownership interest in its Boston Options Exchange facility (‘‘BOX’’) such that its aggregate percentage interest will fall below 20%. 9 For example, the original listing fee is increasing from $7,500 to $10,000 and the annual maintenance fee would increase from $1,000 to $1,500 for the first listed security. 10 See 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate jul<14>2003 15:34 Aug 04, 2005 Jkt 205001 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 III below. The Exchange 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 On January 13, 2004, the Commission approved four BSE proposals that together established BOX as a facility of the Exchange.3 This proposal relates to section 8.4(f) of the operating agreement of BOX LLC (the ‘‘LLC Agreement’’), which requires that any Transfer 4 that would result in a reduction of BSE’s aggregate Percentage Interest 5 in BOX LLC to below 20% be subject to the rule filing process pursuant to section 19(b)(1) of the Act 6 and Rule 19b–4 thereunder.7 The BSE is proposing to Transfer a portion of its Units, which would result in the BSE’s Percentage Interest falling below the 20% threshold. Any such Transfer would be subject to the various limitations set forth elsewhere in the LLC Agreement, throughout Article 8 and elsewhere, regarding suitability and other regulatory and business requirements.8 Although the BSE does 3 See Securities Exchange Act Release Nos. 49066 (January 13, 2004), 69 FR 2773 (January 20, 2004) (establishing a fee schedule for the proposed BOX facility); 49065 (January 13, 2004), 69 FR 2768 (January 20, 2004) (creating Boston Options Exchange Regulation LLC to which the BSE would delegate its self regulatory functions with respect to the BOX facility); 49068 (January 13, 2004), 69 FR 2775 (January 20, 2004) (approving trading rules for the BOX facility); and 49067 (January 13, 2004), 69 FR 2761 (January 20, 2004) (approving certain regulatory provisions of the operating agreement of BOX LLC). 4 Under the terms of the LLC Agreement, a ‘‘Transfer’’ occurs when any LLC member would ‘‘dispose of, sell, alienate, assign, exchange, participate, subparticipate, encumber, or otherwise transfer in any manner . . . all or any part portion of its Units’’ (ownership interests). 5 Under the terms of the LLC Agreement, ‘‘Percentage Interest’’ is defined as the ratio of the number of Units held by an LLC member to the total of all of the issued Units, expressed as a percentage. 6 15 U.S.C. 78s(b)(1). 7 17 CFR 240.19b–4. 8 For example, the BSE would be prohibited, under Section 8.1(d), from Transferring any of its PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 45451 not presently have a transferee designated, any such transferee would need to sign and be bound by the provisions of the LLC Agreement. The purpose of the Transfer would be to assist the BSE to fund its equitiesrelated business interests and initiatives related thereto. Nothing about BSE’s transfer of Units will affect additional provisions of the LLC Agreement that make special accommodations for BSE as the SRO of the BOX facility. For example, Section 4.4(a) of the LLC Agreement provides that BOX may not take any major action unless such action is approved by a majority of the BOX LLC Board, including the affirmative vote of all of the directors designated by the BSE. Section 4.1(b) of the LLC Agreement provides that, with its present ownership interest, BSE is entitled to maintain two seats on the Board. Since the BSE does not at this time anticipate that any foreseen Transfers would result in BSE’s Percentage Interest of BOX LLC going below 8.00% (the threshold established in this Section to maintain at least two directors on the Board), then this entitlement will remain. Nevertheless, Section 4.1(b) also gives the BSE a perpetual right to designate at least one director on the BOX LLC Board regardless of whether it maintains any ownership interest. In addition, although BOX LLC itself will not carry out any regulatory functions, all of its activities must be consistent with the Act. For example, provisions set forth in Sections 4.2(a) and 5.3 of the LLC Agreement state that each unitholder and director of BOX cooperate with the Commission and the BSE in carrying out their regulatory responsibilities. These provisions reinforce the notion that BOX, as a facility of an exchange, is not solely a commercial enterprise; it is an integral part of an SRO registered pursuant to the Act, and is subject to the obligations imposed by the Act. These obligations endure so long as BOX is a facility of the Exchange, regardless of the size of BSE’s ownership interest in BOX LLC. The Commission has stated, in a similar case involving the establishment of ArcaEx as a facility of the Pacific Exchange (‘‘PCX’’), that a national securities exchange need not have a significant ownership interest in the Units to anyone other than a Member, affiliate of a Member, or IB (according the terms set forth in Section 8.6(d)), until after the earlier of the second anniversary of the Launch Date of BOX or the date on which IB’s percentage interest has been reduced to no more than 8.00%. E:\FR\FM\05AUN1.SGM 05AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 150 (Friday, August 5, 2005)]
[Notices]
[Pages 45450-45451]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-15485]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52132; File No. SR-BSE-2005-15]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order 
Approving Proposed Rule Change Relating to Listing Fees

July 27, 2005.

I. Introduction

    On May 31, 2005, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission''), pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend its Listing Fees 
schedule by increasing its listing fees. The proposed rule change was 
published in the Federal Register on June 24, 2005.\3\ No comments were 
received on the proposed rule change. This order approves the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 51881 (June 20, 
2005), 70 FR 36674.
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II. Description of the Proposal

    The Exchange proposes to amend its Listing Fees schedule by 
increasing its listing fees. The Exchange proposes to increase its 
original listing fee, annual listing maintenance fee and listing fee 
for additional shares, among other things.\4\
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    \4\ The Exchange's revised Listing Fees schedule was fully set 
forth in the proposed rule change published for comment. See id.
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III. Discussion and Commission Findings

    The Commission finds that the proposed rule change is consistent 
with the Act and the rules and regulations thereunder applicable to a 
national securities exchange,\5\ particularly section 6(b) of the 
Act,\6\ in general, and furthers the objectives of section 6(b)(4) of 
the Act,\7\ in particular, in that it provides 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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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact of efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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    The Commission notes that the Exchange has not raised its listing 
fees since 1991.\8\ According to the Exchange,

[[Page 45451]]

the increased fees better reflect the Exchange's costs and the value of 
the services that the Exchange provides. Given the passage of time 
since the Exchange last raised its listing fees, the actual dollar 
amount of the fee increases being proposed,\9\ and the fact that no 
commenters objected to the Exchange's proposed fees, the Commission 
believes the increases in fees are reasonable.
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    \8\ See Securities Exchange Act Release No. 29276 (June 5, 
1991), 56 FR 27060 (June 12, 1991).
    \9\ For example, the original listing fee is increasing from 
$7,500 to $10,000 and the annual maintenance fee would increase from 
$1,000 to $1,500 for the first listed security.
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-BSE-2005-15) is approved.
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    \10\ See 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 05-15485 Filed 8-4-05; 8:45 am]
BILLING CODE 8010-01-P

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