Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Decreasing the Exposure Period for Crossing Orders Under Chapter V, Section 17, Supplementary Material .02 and .03, 30975-30976 [E6-8357]
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<![CDATA[
Federal Register / Vol. 71, No. 104 / Wednesday, May 31, 2006 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–BSE–2006–19 and should be
submitted on or before June 21, 2006.
Rules of the Boston Options Exchange
Facility
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–8322 Filed 5–30–06; 8:45 am]
Sec. 17 Customer Orders and Order
Flow Providers
(a) through (c) No Change.
Supplementary Material to Section 17
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53854; File No. SR–BSE–
2006–23]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating To
Decreasing the Exposure Period for
Crossing Orders Under Chapter V,
Section 17, Supplementary Material .02
and .03
May 24, 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 May 11,
2006, the Boston Stock Exchange, Inc.
(‘‘BSE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the BSE. The
BSE filed the proposed rule change as
a ‘‘non-controversial’’ rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b-4(f)(6) 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 from interested persons.
jlentini on PROD1PC65 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The BSE proposes to decrease the
exposure period for crossing orders
under Chapter V, Section 17,
Supplementary Material .02 and .03 of
the Boston Options Exchange (‘‘BOX’’)
rules from 30 seconds to 3 seconds. The
text of the proposed rule amendment is
provided below.
*
*
*
*
*
(Additions are italicized; deletions are
[bracketed], unless otherwise indicated)
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
CHAPTER V. DOING BUSINESS ON
BOX
.01 No Change.
.02 If an Options Participant fails to
expose its Customer Order[s] 5 on BOX,
it will be a violation of this Section 17
for an Options Participant to cause the
execution of an order it represents as
agent on BOX through the use of orders
it solicited from Options Participants
and/or non-Participant broker-dealers to
transact with such orders, whether such
solicited orders are entered into the
BOX market directly by the Options
Participant or by the solicited party
(either directly or through another
Participant), unless the agency order is
first exposed to the BOX Book for at
least [thirty (30)]three (3) seconds.
.03 An OFP may not execute as
principal an order it represents as agent
unless, (i) the agency order is first
exposed to the BOX Book for at least
[thirty (30)]three (3) seconds, or (ii) the
OFP has been bidding or offering on
BOX for a least [thirty (30)]three (3)
seconds prior to receiving an agency
order that is executable against such bid
or offer; or (iii) the OFP sends the
agency order to the Price Improvement
Period process pursuant to Section 18 of
this Chapter V.
.04 No Change.
*
*
*
*
*
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 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.
12 17
1 15
VerDate Aug<31>2005
17:52 May 30, 2006
5 The ‘‘s’’ and surrounding brackets appear in the
current rule text, and are not intended to be
deletions under the proposed rule change.
Jkt 208001
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
30975
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
An Options Participant
(‘‘Participant’’) may not execute an
order it represents as agent with a
facilitation or a solicited order (referred
to herein as ‘‘crossing orders’’) unless it
complies with the order exposure
requirements contained in Chapter V,
Section 17, Supplementary Material .03
and .02 respectively. Specifically, when
a Participant is not submitting an order
to the Price Improvement Period
process, it may not execute a facilitation
cross unless (i) the agency order is first
exposed to the BOX Book for at least 30
seconds; or (ii) the Participant has been
bidding or offering on BOX for at least
30 seconds prior to receiving the agency
order that is executable against such bid
or offer. Similarly, a Participant may not
execute a solicitation cross unless the
agency order is first exposed to the BOX
Book for 30 seconds.
The BSE proposes to shorten the
duration of the exposure period
contained in the rules governing such
transactions from 30 seconds to 3
seconds. This shortened exposure
period is fully consistent with the
electronic nature of the BOX’s market.
Market participants on the BOX market
have implemented systems that monitor
any updates to the BOX market,
including any changes resulting from
orders being entered into the market,
and can automatically respond based on
pre-set parameters. Thus, an exposure
period of 3 seconds will permit
exposure of orders on BOX in a manner
consistent with its electronic market.
By reducing the exposure time to 3
seconds, the BSE believes that
Participants will be able to provide
liquidity to their customers’ orders on a
timelier basis, thus providing investors
with more speedy executions. Timely
and accurate executions are consistent
with the principles under which the
BOX’s electronic market was developed.
2. Statutory Basis
The BSE believes that the proposal is
consistent with the requirements of
section 6(b) of the Act,6 in general, and
Section 6(b)(5) of the Act,7 in particular,
in that it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
E:\FR\FM\31MYN1.SGM
31MYN1
30976
Federal Register / Vol. 71, No. 104 / Wednesday, May 31, 2006 / Notices
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. In
particular, the proposal will permit
members to provide liquidity to
customer orders on a timelier basis, thus
providing investors with more speedy
executions. At the same time, it will
preserve a reasonable period for orders
to interact in the auction market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The BSE does not believe that the
proposed rule change will 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
jlentini on PROD1PC65 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
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.
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.10 However, Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
BSE provided the Commission with
written notice of its intent to file this
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 Id.
9 17
VerDate Aug<31>2005
17:52 May 30, 2006
Jkt 208001
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–2006–23 and should
be submitted on or before June 21, 2006.
IV. Solicitation of Comments
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Nancy M. Morris,
Secretary.
[FR Doc. E6–8357 Filed 5–30–06; 8:45 am]
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
The BSE has neither solicited nor
received comments on the proposed
rule change.
8 15
proposed rule change at least five
business days prior to the date of filing
of the proposed rule change. In
addition, the BSE has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposed rule change is
based on rules recently approved by the
Commission for two other exchanges.12
For this reason, the Commission
designates the proposal to be effective
and operative upon filing with the
Commission.13
SMALL BUSINESS ADMINISTRATION
• 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–BSE–2006–23 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BSE–2006–23. 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 (https://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
Commission and any person, other than
those that may be withheld from the
12 See Securities Exchange Act Release Nos.
53567 (March 29, 2006), 71 FR 17529 (April 6,
2006) (SR–CBOE–2006–09) and 53609 (April 6,
2006), 71 FR 19224 (April 13, 2006) (SR–
NYSEArca–2006–01).
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
PO 00000
Frm 00120
Fmt 4703
BILLING CODE 8010–01–P
Sfmt 4703
[Disaster Declaration #10322 and #10323]
Texas Disaster Number TX–00097
U.S. Small Business
Administration.
ACTION: Amendment 10.
AGENCY:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Texas (FEMA—
1624—DR), dated 1/11/2006.
Incident: Extreme Wildfire Threat.
Incident Period: 11/27/2005 through
5/14/2006.
Effective Date: 5/17/2006.
Physical Loan Application Deadline
Date: 5/30/2006.
EIDL Loan Application Deadline Date:
10/11/2006.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
and Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
The notice
of the Presidential disaster declaration
for the State of Texas, dated 1/11/2006
is hereby amended to include the
following areas as adversely affected by
the disaster:
Primary Counties:
Johnson
Contiguous Counties: Texas
SUPPLEMENTARY INFORMATION:
14 17
E:\FR\FM\31MYN1.SGM
CFR 200.30–3(a)(12).
31MYN1
]]>Agencies
[Federal Register Volume 71, Number 104 (Wednesday, May 31, 2006)]
[Notices]
[Pages 30975-30976]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8357]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53854; File No. SR-BSE-2006-23]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating To Decreasing the Exposure Period for Crossing Orders Under
Chapter V, Section 17, Supplementary Material .02 and .03
May 24, 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 May 11, 2006, the Boston Stock Exchange, Inc. (``BSE'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the BSE. The BSE filed the proposed rule change as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(6) 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 from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE proposes to decrease the exposure period for crossing
orders under Chapter V, Section 17, Supplementary Material .02 and .03
of the Boston Options Exchange (``BOX'') rules from 30 seconds to 3
seconds. The text of the proposed rule amendment is provided below.
* * * * *
(Additions are italicized; deletions are [bracketed], unless
otherwise indicated)
Rules of the Boston Options Exchange Facility
CHAPTER V. DOING BUSINESS ON BOX
Sec. 17 Customer Orders and Order Flow Providers
(a) through (c) No Change.
Supplementary Material to Section 17
.01 No Change.
.02 If an Options Participant fails to expose its Customer Order[s]
\5\ on BOX, it will be a violation of this Section 17 for an Options
Participant to cause the execution of an order it represents as agent
on BOX through the use of orders it solicited from Options Participants
and/or non-Participant broker-dealers to transact with such orders,
whether such solicited orders are entered into the BOX market directly
by the Options Participant or by the solicited party (either directly
or through another Participant), unless the agency order is first
exposed to the BOX Book for at least [thirty (30)]three (3) seconds.
---------------------------------------------------------------------------
\5\ The ``s'' and surrounding brackets appear in the current
rule text, and are not intended to be deletions under the proposed
rule change.
---------------------------------------------------------------------------
.03 An OFP may not execute as principal an order it represents as
agent unless, (i) the agency order is first exposed to the BOX Book for
at least [thirty (30)]three (3) seconds, or (ii) the OFP has been
bidding or offering on BOX for a least [thirty (30)]three (3) seconds
prior to receiving an agency order that is executable against such bid
or offer; or (iii) the OFP sends the agency order to the Price
Improvement Period process pursuant to Section 18 of this Chapter V.
.04 No Change.
* * * * *
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 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
An Options Participant (``Participant'') may not execute an order
it represents as agent with a facilitation or a solicited order
(referred to herein as ``crossing orders'') unless it complies with the
order exposure requirements contained in Chapter V, Section 17,
Supplementary Material .03 and .02 respectively. Specifically, when a
Participant is not submitting an order to the Price Improvement Period
process, it may not execute a facilitation cross unless (i) the agency
order is first exposed to the BOX Book for at least 30 seconds; or (ii)
the Participant has been bidding or offering on BOX for at least 30
seconds prior to receiving the agency order that is executable against
such bid or offer. Similarly, a Participant may not execute a
solicitation cross unless the agency order is first exposed to the BOX
Book for 30 seconds.
The BSE proposes to shorten the duration of the exposure period
contained in the rules governing such transactions from 30 seconds to 3
seconds. This shortened exposure period is fully consistent with the
electronic nature of the BOX's market. Market participants on the BOX
market have implemented systems that monitor any updates to the BOX
market, including any changes resulting from orders being entered into
the market, and can automatically respond based on pre-set parameters.
Thus, an exposure period of 3 seconds will permit exposure of orders on
BOX in a manner consistent with its electronic market.
By reducing the exposure time to 3 seconds, the BSE believes that
Participants will be able to provide liquidity to their customers'
orders on a timelier basis, thus providing investors with more speedy
executions. Timely and accurate executions are consistent with the
principles under which the BOX's electronic market was developed.
2. Statutory Basis
The BSE believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling,
[[Page 30976]]
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. In particular, the proposal
will permit members to provide liquidity to customer orders on a
timelier basis, thus providing investors with more speedy executions.
At the same time, it will preserve a reasonable period for orders to
interact in the auction market.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The BSE does not believe that the proposed rule change will 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
The BSE 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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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.
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The BSE provided the Commission with
written notice of its intent to file this proposed rule change at least
five business days prior to the date of filing of the proposed rule
change. In addition, the BSE has requested that the Commission waive
the 30-day operative delay. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest because the proposed rule change is based on
rules recently approved by the Commission for two other exchanges.\12\
For this reason, the Commission designates the proposal to be effective
and operative upon filing with the Commission.\13\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ Id.
\12\ See Securities Exchange Act Release Nos. 53567 (March 29,
2006), 71 FR 17529 (April 6, 2006) (SR-CBOE-2006-09) and 53609
(April 6, 2006), 71 FR 19224 (April 13, 2006) (SR-NYSEArca-2006-01).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-BSE-2006-23 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BSE-2006-23. 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 (https://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 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-2006-23 and should be submitted on or before June
21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-8357 Filed 5-30-06; 8:45 am]
BILLING CODE 8010-01-P
