Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto Relating to Its Minor Rule Violation Plan, 59562-59563 [E6-16645]
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Federal Register / Vol. 71, No. 195 / Tuesday, October 10, 2006 / Notices
issuers, brokers, or dealers, or to
regulate by virtue of any authority
conferred by the Act matters not related
to the purpose of the Act or the
administration of the Amex.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Amex 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
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6) 12
thereunder because the proposed rule
change: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days from the date of the filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest pursuant to Section
19(b)(3)(A)(iii) of the Act 13 and Rule
19b–4(f)(6) thereunder.14
Amex has requested that the
Commission waive both the five-day
pre-filing requirement and the 30-day
delayed operative delay.15 The
Commission is exercising its authority
to waive the five-day pre-filing notice
requirement and believes that the
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest. Waiver
of the five-day pre-filing and 30-day
operative periods will extend the Pilot,
which would otherwise expire on
October 1, 2006, and allow the Amex to
continue in its efforts to obtain a
surveillance agreement with Bolsa. The
Commission notes that another selfregulatory organization recently adopted
a substantially similar rule change that
was effective upon filing.16
jlentini on PROD1PC65 with NOTICES
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 15 U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
16 See Securities Exchange Act Release No. 54347
(August 22, 2006), 71 FR 51242 (August 29, 2006)
(SR–CBOE–2006–72).
Accordingly, the Commission
designates the proposal to be effective
and operative upon filing with the
Commission.17
At any time within sixty (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.18
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 rulecomments@sec.gov. Please include File
Number SR–Amex–2006–91 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–Amex–2006–91. 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
Section, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
12 17
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16:42 Oct 06, 2006
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17 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. 15 U.S.C. 78c(f).
18 See Section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
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Frm 00137
Fmt 4703
Sfmt 4703
be available for inspection and copying
at the principal office of the Amex. 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–Amex–2006–91 and should
be submitted on or before October 31,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
Nancy M. Morris,
Secretary.
[FR Doc. E6–16630 Filed 10–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54556; File No. SR–BSE–
2005–09]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Order Approving
Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto
Relating to Its Minor Rule Violation
Plan
October 2, 2006.
On February 7, 2005, the Boston Stock
Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘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 BSE Rule Chapter XXX
(‘‘Disciplining of Members—Denial of
Membership’’) and BSE Rule Chapter
XXXIV (‘‘Minor Rule Violations’’). The
Exchange filed Amendment No. 1 to the
proposed rule change on July 7, 2006,
and Amendment No. 2 on August 18,
2006. The proposed rule change, as
amended, was published for comment
in the Federal Register on September 1,
2006.3 The Commission received no
comments regarding the proposal.
BSE proposed to make the following
changes:
• Add ‘‘Principal Considerations in
Determining Sanctions’’ to BSE Rule
Chapter XXX;
• Move Acceptance Waiver and
Consent Procedures (‘‘AWC’’) from BSE
Rule Chapter XXXIV to BSE Rule
Chapter XXX;
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 54374
(August 28, 2006), 71 FR 52183.
1 15
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Federal Register / Vol. 71, No. 195 / Tuesday, October 10, 2006 / Notices
jlentini on PROD1PC65 with NOTICES
• Change references to the ‘‘Chief
Regulatory Officer’’ in the AWC to the
‘‘General Counsel or his/her delegatee’’;
• Add a provision in BSE Rule
Chapter XXX imposing a late charge
when a member fails to pay a fine on a
timely basis;
• Add violations of the Exchange’s
rules governing the Intermarket Trading
System to BSE Rule Chapter XXXIV;
• Restructure the fine levels of
violations in BSE Rule Chapter XXXIV
pertaining to Failure to Display Limit
Orders, Floor Order Facilitation, Failure
to Designate an Order (PPS), and
Dealings Outside of Exchange Operating
Hours; and
• Adjust the fine levels for short sale
violations in BSE Rule Chapter XXXIV.
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.4 In particular, the
Commission believes that the proposal
is consistent with Section 6(b)(5) of the
Act,5 because delineating factors to be
considered in determining sanctions
should promote transparency of the
Exchange’s disciplinary process and the
ability to impose a late charge for the
failure to pay fines should help the
Exchange carry out its supervisory
responsibilities.
The Commission further believes that
the proposal is consistent with Sections
6(b)(1) and 6(b)(6) of the Act,6 which
require that the rules of an exchange
enforce compliance with, and provide
appropriate discipline for, violations of
Commission and Exchange rules. In
addition, because BSE Rule Chapter
XVIII provides procedural rights to
contest the fine for any violation of an
Exchange rule and permits disciplinary
proceedings on the matter, the
Commission believes BSE Rule Chapter
XXXIV, as amended by this proposal,
provides a fair procedure for the
disciplining of members and persons
associated with members, consistent
with Sections 6(b)(7) and 6(d)(1) of the
Act.7
Finally, the Commission finds that the
proposal is consistent with the public
interest, the protection of investors, or
otherwise in furtherance of the purposes
of the Act, as required by Rule 19d–
1(c)(2) under the Act 8 which governs
minor rule violation plans. The
4 In approviing this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(5).
6 15 U.S.C. 78f(b)(1) and 78f(b)(6).
7 15 U.S.c. 78f(b)(7) and 78f(d)(1).
8 17 CFR 240.19d–1(c)(2).
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16:42 Oct 06, 2006
Jkt 211001
Commission believes that the proposed
change to BSE Rule Chapter XXXIV will
strengthen the Exchange’s ability to
carry out its oversight and enforcement
responsibilities as a self-regulatory
organization in cases where full
disciplinary proceedings are unsuitable
in view of the minor nature of the
particular violation.
In approving this proposed rule
change, as amended, the Commission in
no way minimizes the importance of
compliance with BSE rules and all other
rules subject to the imposition of fines
under the minor rule violation plan of
the Exchange. The Commission believes
that the violation of any self-regulatory
organization’s rules, as well as
Commission rules, is a serious matter.
However, the Exchange’s minor rule
violation plan under BSE Rule Chapter
XXXIV provides a reasonable means of
addressing rule violations that do not
rise to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. The Commission
expects that BSE will continue to
conduct surveillance with due diligence
and make a determination based on its
findings, on a case-by-case basis,
whether a fine of more or less than the
recommended amount is appropriate for
a violation under the minor rule
violation plan or whether a violation
requires formal disciplinary action
under BSE Rule Chapter XXX.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 9 and Rule
19d–1(c)(2) under the Act,10 that the
proposed rule change (SR–BSE–2005–
09), as amended, be, and hereby is,
approved and declared effective.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–16645 Filed 10–6–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54550; File No. SR–CHX–
2006–05]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Order
Approving a Proposed Rule Change
and Amendment No. 1 Thereto and
Notice of Filing and Order Granting
Accelerated Approval to Amendment
No. 2 Thereto to Implement a New
Trading Model
September 29, 2006.
I. Introduction
On February 2, 2006, the Chicago
Stock Exchange, Inc. (‘‘CHX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘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 rules to implement a new
trading model that provides the
opportunity for fully automated
executions to occur within a central
matching system (the ‘‘Matching
System’’). On August 10, 2006, the
Exchange filed Amendment No. 1 to the
proposed rule change. The proposed
rule change, as amended by
Amendment No. 1, was published for
comment in the Federal Register on
August 18, 2006.3 The Commission
received one comment letter on the
proposal.4
On September 29, 2006, the Exchange
filed Amendment No. 2 to the proposed
rule change.5 This order approves the
proposed rule change, as amended by
Amendment No. 1. Simultaneously, the
Commission is providing notice of filing
of, and granting accelerated approval to,
Amendment No. 2 to the proposed rule
change.
II. Description
The Exchange proposes to amend its
rules in order to implement a new
trading model that would allow
Exchange participants to interact in a
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 54301
(August 10, 2006), 71 FR 47836 (‘‘Trading Rules
Notice’’).
4 See Letter from Michael A. Barth, Senior Vice
President, Exchanges and Market Centers, Order
Execution Services Holdings, Inc. (‘‘OES’’), to
Nancy M. Morris, Secretary, Commission, dated
August 25, 2006 (‘‘OES Letter’’).
5 See Form 19b–4 dated September 29, 2006
(‘‘Amendment No. 2’’). The text of Amendment No.
2 is available on CHX’s Web site (https://
www.chx.com), at the principal office of CHX, and
at the Commission’s Public Reference Room. See
infra Section II.E for a discussion of Amendment
No. 2.
2 17
9 15
U.S.C. 78s(b)(2).
CFR 240.19d–1(c)(2).
11 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(44).
10 17
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59563
E:\FR\FM\10OCN1.SGM
10OCN1
Agencies
[Federal Register Volume 71, Number 195 (Tuesday, October 10, 2006)]
[Notices]
[Pages 59562-59563]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16645]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54556; File No. SR-BSE-2005-09]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order
Approving Proposed Rule Change and Amendment Nos. 1 and 2 Thereto
Relating to Its Minor Rule Violation Plan
October 2, 2006.
On February 7, 2005, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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 BSE Rule Chapter XXX (``Disciplining of
Members--Denial of Membership'') and BSE Rule Chapter XXXIV (``Minor
Rule Violations''). The Exchange filed Amendment No. 1 to the proposed
rule change on July 7, 2006, and Amendment No. 2 on August 18, 2006.
The proposed rule change, as amended, was published for comment in the
Federal Register on September 1, 2006.\3\ The Commission received no
comments regarding the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 54374 (August 28,
2006), 71 FR 52183.
---------------------------------------------------------------------------
BSE proposed to make the following changes:
Add ``Principal Considerations in Determining Sanctions''
to BSE Rule Chapter XXX;
Move Acceptance Waiver and Consent Procedures (``AWC'')
from BSE Rule Chapter XXXIV to BSE Rule Chapter XXX;
[[Page 59563]]
Change references to the ``Chief Regulatory Officer'' in
the AWC to the ``General Counsel or his/her delegatee'';
Add a provision in BSE Rule Chapter XXX imposing a late
charge when a member fails to pay a fine on a timely basis;
Add violations of the Exchange's rules governing the
Intermarket Trading System to BSE Rule Chapter XXXIV;
Restructure the fine levels of violations in BSE Rule
Chapter XXXIV pertaining to Failure to Display Limit Orders, Floor
Order Facilitation, Failure to Designate an Order (PPS), and Dealings
Outside of Exchange Operating Hours; and
Adjust the fine levels for short sale violations in BSE
Rule Chapter XXXIV.
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\4\
In particular, the Commission believes that the proposal is consistent
with Section 6(b)(5) of the Act,\5\ because delineating factors to be
considered in determining sanctions should promote transparency of the
Exchange's disciplinary process and the ability to impose a late charge
for the failure to pay fines should help the Exchange carry out its
supervisory responsibilities.
---------------------------------------------------------------------------
\4\ In approviing this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission further believes that the proposal is consistent
with Sections 6(b)(1) and 6(b)(6) of the Act,\6\ which require that the
rules of an exchange enforce compliance with, and provide appropriate
discipline for, violations of Commission and Exchange rules. In
addition, because BSE Rule Chapter XVIII provides procedural rights to
contest the fine for any violation of an Exchange rule and permits
disciplinary proceedings on the matter, the Commission believes BSE
Rule Chapter XXXIV, as amended by this proposal, provides a fair
procedure for the disciplining of members and persons associated with
members, consistent with Sections 6(b)(7) and 6(d)(1) of the Act.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
\7\ 15 U.S.c. 78f(b)(7) and 78f(d)(1).
---------------------------------------------------------------------------
Finally, the Commission finds that the proposal is consistent with
the public interest, the protection of investors, or otherwise in
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2)
under the Act \8\ which governs minor rule violation plans. The
Commission believes that the proposed change to BSE Rule Chapter XXXIV
will strengthen the Exchange's ability to carry out its oversight and
enforcement responsibilities as a self-regulatory organization in cases
where full disciplinary proceedings are unsuitable in view of the minor
nature of the particular violation.
---------------------------------------------------------------------------
\8\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------
In approving this proposed rule change, as amended, the Commission
in no way minimizes the importance of compliance with BSE rules and all
other rules subject to the imposition of fines under the minor rule
violation plan of the Exchange. The Commission believes that the
violation of any self-regulatory organization's rules, as well as
Commission rules, is a serious matter. However, the Exchange's minor
rule violation plan under BSE Rule Chapter XXXIV provides a reasonable
means of addressing rule violations that do not rise to the level of
requiring formal disciplinary proceedings, while providing greater
flexibility in handling certain violations. The Commission expects that
BSE will continue to conduct surveillance with due diligence and make a
determination based on its findings, on a case-by-case basis, whether a
fine of more or less than the recommended amount is appropriate for a
violation under the minor rule violation plan or whether a violation
requires formal disciplinary action under BSE Rule Chapter XXX.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\9\ and Rule 19d-1(c)(2) under the Act,\10\ that the proposed rule
change (SR-BSE-2005-09), as amended, be, and hereby is, approved and
declared effective.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
\10\ 17 CFR 240.19d-1(c)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(44).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-16645 Filed 10-6-06; 8:45 am]
BILLING CODE 8011-01-P