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, 55530-55532 [06-8038]
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sroberts on PROD1PC70 with NOTICES
55530
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices
person whose relationship to the
Unaffiliated Fund is covered by section
10(f) of the Act is not an Underwriting
Affiliate). An offering of securities
during the existence of an underwriting
or selling syndicate of which a principal
underwriter is an Underwriting Affiliate
is an ‘‘Affiliated Underwriting.’’
6. The board of an Unaffiliated
Underlying Fund, including a majority
of the disinterested board members, will
adopt procedures reasonably designed
to monitor any purchases of securities
by the Unaffiliated Underlying Fund in
an Affiliated Underwriting once an
investment by a Series in the securities
of the Unaffiliated Underlying Fund
exceeds the limit of section
12(d)(1)(A)(i) of the Act, including any
purchases made directly from an
Underwriting Affiliate. The board of the
Unaffiliated Underlying Fund will
review these purchases periodically, but
no less frequently than annually, to
determine whether the purchases were
influenced by the investment by the
Series in the Unaffiliated Underlying
Fund. The board of the Unaffiliated
Underlying Fund will consider, among
other things: (a) Whether the purchases
were consistent with the investment
objectives and policies of the
Unaffiliated Underlying Fund; (b) how
the performance of securities purchased
in an Affiliated Underwriting compares
to the performance of comparable
securities purchased during a
comparable period of time in
underwritings other than Affiliated
Underwritings or to a benchmark such
as a comparable market index; and (c)
whether the amount of securities
purchased by the Unaffiliated
Underlying Fund in Affiliated
Underwritings and the amount
purchased directly from an
Underwriting Affiliate have changed
significantly from prior years. The board
of the Unaffiliated Underlying Fund
will take any appropriate actions based
on its review, including, if appropriate,
the institution of procedures designed to
assure that purchases of securities in
Affiliated Underwritings are in the best
interests of shareholders.
7. An Unaffiliated Underlying Fund
will maintain and preserve permanently
in an easily accessible place a written
copy of the procedures described in the
preceding condition, and any
modifications to such procedures, and
will maintain and preserve for a period
of not less than six years from the end
of the fiscal year in which any purchase
in an Affiliated Underwriting occurred,
the first two years in an easily accessible
place, a written record of each purchase
of securities in Affiliated Underwritings
once an investment by a Series in the
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securities of the Unaffiliated Underlying
Fund exceeds the limit of section
12(d)(1)(A)(i) of the Act, setting forth
from whom the securities were
acquired, the identity of the
underwriting syndicate’s members, the
terms of the purchase, and the
information or materials upon which
the determinations of the board of the
Unaffiliated Underlying Fund were
made.
8. Before investing in an Unaffiliated
Underlying Fund in excess of the limit
in section 12(d)(1)(A)(i), each Series and
the Unaffiliated Underlying Fund will
execute a Participation Agreement
stating, without limitation, that the
Depositor and Trustee and the board of
directors or trustees of the Unaffiliated
Underlying Fund and the investment
adviser(s) to the Unaffiliated Underlying
Fund, understand the terms and
conditions of the order and agree to
fulfill their responsibilities under the
order. At the time of its investment in
shares of an Unaffiliated Underlying
Fund in excess of the limit in section
12(d)(1)(A)(i), a Series will notify the
Unaffiliated Underlying Fund of the
investment. At such time, the Series
also will transmit to the Unaffiliated
Underlying Fund a list of the names of
each Series Affiliate and Underwriting
Affiliate. The Series will notify the
Unaffiliated Underlying Fund of any
changes to the list of names as soon as
reasonably practicable after a change
occurs. The Unaffiliated Underlying
Fund and the Series will maintain and
preserve a copy of the order, the
Participation Agreement, and the list
with any updated information for the
duration of the investment, and for a
period of not less than six years
thereafter, the first two years in an
easily accessible place.
9. Any sales charges and/or service
fees charged with respect to Units of a
Series will not exceed the limits
applicable to a fund of funds as set forth
in Rule 2830 of the Conduct Rules of the
NASD.
10. No Fund will acquire securities of
any investment company or company
relying on section 3(c)(1) or 3(c)(7) of
the Act in excess of the limits contained
in section 12(d)(1)(A) of the Act.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06–7998 Filed 9–21–06; 8:45 am]
BILLING CODE 8010–01–P
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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.
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
1 15
U.S.C. 78s(b)(1).
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).
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.
2 17
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Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices
propose making any substantive
changes to the pilot program.
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
sroberts on PROD1PC70 with NOTICES
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
7 See
supra footnote 6.
CFR 240.19b–4(f)(6)(iii).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
8 17
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re-establish the market opening
procedures pilot program, which
provides a quick, efficient, fair and
orderly market opening process.
the Commission designates the
proposal, as amended, to be effective
and operative upon filing with the
Commission.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
IV. Solicitation of Comments
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
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
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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.
55531
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
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,
11 15
U.S.C. 78s(b)(3)(A).
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.
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
12 17
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• 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–2006–37 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
(https://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.
proposed rule change’s impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
E:\FR\FM\22SEN1.SGM
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55532
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06–8038 Filed 9–21–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54465; File No. SR–CBOE–
2006–76]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Its Marketing
Fee 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 Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ 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 Exchange. CBOE has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by CBOE under
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its
marketing fee program. Below is the text
of the proposed rule change. Proposed
new language is in italics; deleted
language is in [brackets].
Chicago Board Options Exchange, Inc.
Fees Schedule
sroberts on PROD1PC70 with NOTICES
[August 29]September 1, 2006
1. No Change.
2. Marketing Fee (6)(16): $.65
3.–4. No Change.
FOOTNOTES:
(1)–(5) No Change.
16 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
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20:37 Sep 21, 2006
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(6) The Marketing Fee will be
assessed only on transactions of MarketMakers, RMMs, e-DPMs, DPMs, and
LMMs resulting from [orders for less
than 1,000 contracts] (i) orders for less
than 1,000 contracts from payment
accepting firms, or (ii) customer orders
for less than 1,000 contracts that have
designated a ‘‘Preferred Market-Maker’’
under CBOE Rule 8.13 at the rate of $.65
per contract on all classes of equity
options, options on HOLDRs, options on
SPDRs, options on DIA, options on
NDX, and options on RUT. The fee will
not apply to: Market-Maker-to-MarketMaker transactions including
transactions resulting from orders from
non-member market-makers;
transactions resulting from inbound P/A
orders or a transaction resulting from
the execution of an order against the
DPM’s account if an order directly
related to that order is represented and
executed through the Linkage Plan
using the DPM’s account; transactions
resulting from accommodation
liquidations (cabinet trades); and
transactions resulting from dividend
strategies, merger strategies, and short
stock interest strategies as defined in
footnote 13 of this Fees Schedule. This
fee shall not apply to index options and
options on ETFs (other than options on
SPDRs, options on DIA, options on
NDX, and options on RUT). A Preferred
Market-Maker will only be given access
to the marketing fee funds generated
from a Preferred order if the Preferred
Market-Maker has an appointment in
the class in which the Preferred order is
received and executed.
Rebate/Carryover Process. If less than
80% of the marketing fee funds
collected in a given month is paid out
by the DPM/LMM or Preferred MarketMaker in a given month, then the
Exchange would refund such surplus at
the end of the month on a pro rata basis
based upon contributions made by the
Market-Makers, RMMs, e-DPMs, DPMs
and LMMs in that month. However, if
80% or more of the funds collected in
a given month is paid out by the DPM/
LMM or Preferred Market-Maker, there
will not be a rebate for that month and
the excess funds will be included in an
Excess Pool of funds to be used by the
DPM/LMM or Preferred Market-Maker
in subsequent months. The total balance
of the Excess Pool of funds for a DPM/
LMM cannot exceed $25,000, and the
total balance of the Excess Pool of funds
for a Preferred Market-Maker cannot
exceed $80,000. If in any month the
DPM/LMM Excess Pool balance were to
exceed $25,000, or the Preferred MarketMaker Excess Pool balance were to
exceed $80,000, the funds in excess of
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$25,000 or $80,000, respectively, would
be refunded on a pro rata basis based
upon contributions made by the MarketMakers, RMMs, DPMs, e-DPMs and
LMMs in that month.
CBOE’s marketing fee program as
described above will be in effect until
June 2, 2007.
Remainder of Fees Schedule—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
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 IV below. CBOE
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
CBOE proposes to amend its
marketing fee program as it relates to
orders designating a ‘‘Preferred MarketMaker’’ under CBOE Rule 8.13. Going
forward, CBOE proposes to assess the
fee only on transactions of MarketMakers, RMMs, e-DPMs, DPMs, and
LMMs (collectively ‘‘Market-Makers’’)
resulting from customer orders 5 for less
than 1,000 contracts that have
designated a ‘‘Preferred Market-Maker’’
under CBOE Rule 8.13. The Exchange
states that previously, transactions of
Market-Makers resulting from all orders
of 1,000 contracts or less that have
designated a ‘‘Preferred Market-Maker’’
under CBOE Rule 8.13 were assessed
the marketing fee. CBOE would
continue to assess the fee on
transactions of Market-Makers resulting
from orders for less than 1,000 contracts
from payment accepting firms.
CBOE states that it is not amending its
marketing fee program in any other
respects.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
5 CBOE represents that, as used in its Fees
Schedule, the term ‘‘customer’’ refers to a public
customer. Telephone conference between David
Liu, Special Counsel, Division of Market
Regulation, Commission, and Patrick Sexton,
Associate General Counsel, Exchange, on
September 12, 2006.
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]]>Agencies
[Federal Register Volume 71, Number 184 (Friday, September 22, 2006)]
[Notices]
[Pages 55530-55532]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8038]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\7\ See supra footnote 6.
\8\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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, 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 (https://
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 (https://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
