Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Allow NMS Cross Order Type To Be Sent to the Boston Equities Exchange, 33792-33793 [E7-11744]

Download as PDF 33792 Federal Register / Vol. 72, No. 117 / Tuesday, June 19, 2007 / Notices Section 213.3394 Department of Transportation DTGS60357 Special Assistant to the White House Liaison and Scheduling and Advance to the Director for Scheduling and Advance. Effective May 11, 2007. DTGS60292 Associate Director for Governmental Affairs to the Assistant Secretary for Governmental Affairs. Effective May 23, 2007. DTGS60364 Special Assistant to the Assistant Secretary for Transportation Policy. Effective May 23, 2007. Authority: 5 U.S.C. 3301 and 3302; E.O. 10577, 3 CFR 1954–1958 Comp., p. 218. Office of Personnel Management. Tricia Hollis, Chief of Staff/Director of External Affairs. [FR Doc. E7–11823 Filed 6–18–07; 8:45 am] BILLING CODE 6325–39–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. rwilkins on PROD1PC63 with NOTICES Extension: Rule 17a–3(a)(16), SEC File No. 270–452, OMB Control No. 3235–0508. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. Sec. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Rule 17a–3(a)(16) (17 CFR Sec. 240.17a–3(a)(16)) under the Securities Exchange Act of 1934 (the ‘‘Act’’) (15 U.S.C. 78a et. seq.) identifies the records required to be made by broker-dealers that operate internal broker-dealer systems. Those records are to be used in monitoring compliance with the Commission’s financial responsibility program and antifraud and antimanipulative rules, as well as other rules and regulations of the Commission and the self-regulatory organizations. It is estimated that approximately 105 active broker-dealer respondents registered with the Commission incur an average burden of 2,835 hours per year (105 respondents multiplied by 27 burden hours per respondent equals VerDate Aug<31>2005 19:06 Jun 18, 2007 Jkt 211001 2,835 total burden hours) to comply with this rule. The average cost per hour is $197. Therefore the total cost of compliance for the respondents is $558,495. Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Comments should be directed to: R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 60 days of this notice. Dated: June 11, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7–11743 Filed 6–18–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55903; File No. SR–BSE– 2007–24] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Allow NMS Cross Order Type To Be Sent to the Boston Equities Exchange June 13, 2007. 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 June 7, 2007, 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 and II below, which Items have been substantially prepared by the Exchange. 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00058 Fmt 4703 The Exchange has designated the proposed rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A)(iii) 3 of the Act 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The BSE proposes amending the BSE Rules to allow the NMS Cross Order type to be sent to the Boston Equities Exchange (‘‘BeX’’). The text of the proposed rule change is available at BSE, the Commission’s Public Reference Room, and on the Exchange’s Web site (http://www.bostonstock.com). 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. 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 proposed rule change is to allow NMS Cross Orders to be sent to BeX. An NMS Cross Order is an order that contains an instruction to execute a cross transaction at a specific price and an instruction to execute all displayed and undisplayed orders or undisplayed portions of orders already in BeX at their limit prices (up to a specified number of shares) against a specified party to allow the cross transaction to occur and/or to route outbound orders to other Trading Centers to the extent necessary to prevent an improper trade-through. An NMS Cross may represent interest of one or more Members of the Exchange but, to the extent that it represents interest of the Member sending the order to BeX, the Member shall not be eligible to satisfy existing 3 15 4 17 Sfmt 4703 E:\FR\FM\19JNN1.SGM U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 19JNN1 Federal Register / Vol. 72, No. 117 / Tuesday, June 19, 2007 / Notices bids or offers in BeX at a price that is better than the cross price (when a Member’s customer is on the same side of the order as the Member) and could only satisfy bid or offers in other markets at a price that is better than the cross price if the cross is for at least 10,000 shares or has a value of at least $200,000 (a ‘‘block size order’’) or is for the account of an institutional customer (as that term is defined in Interpretation and Policy .03 of Chapter XXXVII, Section 2(Q)) 5 and the Member’s customer has specifically agreed to that outcome. Members must handle their customer limit orders with due care so as to comply with Chapter II, Section 11 of the BSE Rules prohibiting a Member from trading ahead of customer orders. The NMS Cross Order provides a Member with an efficient mechanism to clear out orders in BeX that would otherwise have time or price priority (and/or displayed bids or offers in other Trading Centers that would otherwise have price priority) and then to effect a cross transaction at a particular price. If an NMS Cross Order is sent with a share size that is too small to satisfy orders in BeX or bids or offers in other markets, as applicable, the order will be automatically cancelled. The share size necessary to satisfy orders in BeX or bids and offers in other markets is separate and distinct from the cross quantity and the cross quantity may not be diminished in order to supplement the share size intended to satisfy orders in BeX or bids and offers in other markets. Once the satisfying execution has occurred (or, for orders sent to other Trading Centers, those orders have been sent), the cross will be executed at a price that is better than the best bid or offer in BeX. rwilkins on PROD1PC63 with NOTICES 2. Statutory Basis The Exchange believes that the basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 6 that an Exchange have rules that are 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, processing 5 Proposed Interpretation and Policy .03 of Chapter XXXVII, Section 2(Q) defines the term ‘‘institutional customer’’ as ‘‘the account of: (a) A bank, savings and loan association, insurance company or registered investment company; (b) an investment advisor registered either with the Commission under Section 203 of the Investment Advisers Act of 1940 or with a state securities commission (or any agency office performing like functions); or (c) any other entity (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million.’’ 6 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 18:32 Jun 18, 2007 Jkt 211001 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would 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 Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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 after the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and subparagraph (f)(6) of Rule 19b–4 thereunder.8 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 the furtherance of the purposes of the Act. 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: Number SR–BSE–2007–24 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–2007–24. 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the 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 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–2007–24 and should be submitted on or before July 10, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–11744 Filed 6–18–07; 8:45 am] BILLING CODE 8010–01–P Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File 7 15 8 17 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00059 Fmt 4703 9 17 Sfmt 4703 33793 E:\FR\FM\19JNN1.SGM CFR 200.30–3(a)(12). 19JNN1

Agencies

[Federal Register Volume 72, Number 117 (Tuesday, June 19, 2007)]
[Notices]
[Pages 33792-33793]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11744]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55903; File No. SR-BSE-2007-24]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Allow NMS Cross Order Type To Be Sent to the Boston Equities Exchange

June 13, 2007.
    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 June 7, 2007, 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 and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange has designated the proposed rule change as ``non-
controversial'' under Section 19(b)(3)(A)(iii) \3\ of the Act 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE proposes amending the BSE Rules to allow the NMS Cross 
Order type to be sent to the Boston Equities Exchange (``BeX''). The 
text of the proposed rule change is available at BSE, the Commission's 
Public Reference Room, and on the Exchange's Web site (http://
www.bostonstock.com).

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. 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 proposed rule change is to allow NMS Cross 
Orders to be sent to BeX. An NMS Cross Order is an order that contains 
an instruction to execute a cross transaction at a specific price and 
an instruction to execute all displayed and undisplayed orders or 
undisplayed portions of orders already in BeX at their limit prices (up 
to a specified number of shares) against a specified party to allow the 
cross transaction to occur and/or to route outbound orders to other 
Trading Centers to the extent necessary to prevent an improper trade-
through.
    An NMS Cross may represent interest of one or more Members of the 
Exchange but, to the extent that it represents interest of the Member 
sending the order to BeX, the Member shall not be eligible to satisfy 
existing

[[Page 33793]]

bids or offers in BeX at a price that is better than the cross price 
(when a Member's customer is on the same side of the order as the 
Member) and could only satisfy bid or offers in other markets at a 
price that is better than the cross price if the cross is for at least 
10,000 shares or has a value of at least $200,000 (a ``block size 
order'') or is for the account of an institutional customer (as that 
term is defined in Interpretation and Policy .03 of Chapter XXXVII, 
Section 2(Q)) \5\ and the Member's customer has specifically agreed to 
that outcome. Members must handle their customer limit orders with due 
care so as to comply with Chapter II, Section 11 of the BSE Rules 
prohibiting a Member from trading ahead of customer orders.
---------------------------------------------------------------------------

    \5\ Proposed Interpretation and Policy .03 of Chapter XXXVII, 
Section 2(Q) defines the term ``institutional customer'' as ``the 
account of: (a) A bank, savings and loan association, insurance 
company or registered investment company; (b) an investment advisor 
registered either with the Commission under Section 203 of the 
Investment Advisers Act of 1940 or with a state securities 
commission (or any agency office performing like functions); or (c) 
any other entity (whether a natural person, corporation, 
partnership, trust or otherwise) with total assets of at least $50 
million.''
---------------------------------------------------------------------------

    The NMS Cross Order provides a Member with an efficient mechanism 
to clear out orders in BeX that would otherwise have time or price 
priority (and/or displayed bids or offers in other Trading Centers that 
would otherwise have price priority) and then to effect a cross 
transaction at a particular price. If an NMS Cross Order is sent with a 
share size that is too small to satisfy orders in BeX or bids or offers 
in other markets, as applicable, the order will be automatically 
cancelled. The share size necessary to satisfy orders in BeX or bids 
and offers in other markets is separate and distinct from the cross 
quantity and the cross quantity may not be diminished in order to 
supplement the share size intended to satisfy orders in BeX or bids and 
offers in other markets. Once the satisfying execution has occurred 
(or, for orders sent to other Trading Centers, those orders have been 
sent), the cross will be executed at a price that is better than the 
best bid or offer in BeX.
2. Statutory Basis
    The Exchange believes that the basis under the Act for this 
proposed rule change is the requirement under Section 6(b)(5) \6\ that 
an Exchange have rules that are 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, 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
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 Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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 after the date of filing, or such shorter time as the Commission 
may designate if consistent with the protection of investors and the 
public interest, the proposed rule change has become effective pursuant 
to Section 19(b)(3)(A) of the Act \7\ and subparagraph (f)(6) of Rule 
19b-4 thereunder.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 the furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-BSE-2007-24 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-2007-24. 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 (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the 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 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-2007-24 and should be submitted on or before July 10, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-11744 Filed 6-18-07; 8:45 am]
BILLING CODE 8010-01-P