Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Extend a Pilot Program That Allows for No Minimum Size Order Requirement for the Price Improvement Period Process on the Boston Options Exchange, 37549-37551 [E7-13309]
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<![CDATA[
37549
Federal Register / Vol. 72, No. 131 / Tuesday, July 10, 2007 / Notices
Monthly
directed
order volume
(in contracts)
Rebate per
contract
3,000,001 and up .............................................................................................................................................
Rebates would be capped at 100% of
options transaction fee charges so that
once an SROT’s options transaction
charges reach zero, the Exchange would
not pay out any additional credits.
The Exchange notes that SROTs are
entitled to the options transaction fee
rebate, which is separate and apart from
the Payment for Order Flow
arrangements, which SROTs may
negotiate with any firm from which they
receive the guaranteed SROT allocation
(i.e., affiliated SROTs).7 The proposed
options transaction fee rebate, which is
provided to SROTs will not come from
the marketing fees collected on SROT
transactions.8
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 9 in general, and
Section 6(b)(4) of the Act 10 in
particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees, and other charges
among Exchange members and issuers
and other persons using Exchange
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
No written comments were solicited
or received with respect to the proposed
rule change.
7 Under the current plan, the Exchange charges an
equity options marketing fee of $0.75 per contract
(and $1.00 for SPY Options) solely to customer
orders that are from payment accepting firms with
whom an SROT receives the guaranteed SROT
allocation, pursuant to 935–ANTE(a)(7). As noted in
the Options Fee Schedule, the $0.35 options
marketing fee applies to those series of Equity
Options, Exchange Traded Fund Share Options, and
Trust Issued Receipt Options that quote and trade
in one cent increments under the penny pilot
program.
8 See Amendment No. 1, supra note 3.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
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16:17 Jul 09, 2007
Jkt 211001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 11 and Rule 19b–4(f)(2) 12
thereunder, because it establishes or
changes a due, fee, or other charge
imposed by the Exchange. Accordingly,
the proposal will take effect upon filing
with the Commission. At any time
within 60 days of the filing of such
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.13
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–2007–55 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–2007–55. 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
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
13 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change, the Commission
considers the period to commence on June 7, 2007,
the date on which the Exchange filed Amendment
No. 1.
PO 00000
11 15
12 17
Frm 00046
Fmt 4703
Sfmt 4703
Total rebate per
volume tier
.15
150,000
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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. 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–2007–55 and should
be submitted on or before July 31, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–13312 Filed 7–9–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55999; File No. SR–BSE–
2007–27]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change and
Amendment No. 1 Thereto To Extend a
Pilot Program That Allows for No
Minimum Size Order Requirement for
the Price Improvement Period Process
on the Boston Options Exchange
July 2, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
14 17
E:\FR\FM\10JYN1.SGM
CFR 200.30–3(a)(12).
10JYN1
37550
Federal Register / Vol. 72, No. 131 / Tuesday, July 10, 2007 / Notices
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 26,
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 BSE. The
BSE has designated 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
proposed rule change effective upon
filing with the Commission. On June 27,
2007, BSE filed Amendment No. 1 to the
proposed rule change.5 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 to amend the rules
of the Boston Options Exchange
(‘‘BOX’’) to extend the BOX pilot
program that permits BOX to have no
minimum size requirement for orders
entered into the Price Improvement
Period (‘‘PIP’’) process (‘‘PIP Pilot
Program’’). The text of the proposed rule
change is available on BSE’s Web site at:
https://www.bostonoptions.com, at BSE’s
principal office, and at the
Commission’s Public Reference Room.
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
jlentini on PROD1PC65 with NOTICES
1. Purpose
The purpose of the proposed rule
change is to extend a Pilot Program
under the Rules of the BOX for an
1 15
VerDate Aug<31>2005
16:17 Jul 09, 2007
Jkt 211001
2. Statutory Basis
The Exchange believes that the data
demonstrates that there is sufficient
investor interest and demand to extend
the Pilot Program for another year. The
Exchange represents that the proposed
rule change is designed to provide
investors with real and significant price
improvement regardless of the size of
the order. Accordingly, the Exchange
believes that the proposal is consistent
with the requirements of Section 6(b) of
the Act,7 in general, and Section 6(b)(5)
of the Act,8 in particular, in that it is
designed to provide price improvement
to any order, which is consistent with
the public interest and protection of
investors from a best execution
standpoint. Additionally, the Exchange
believes that price improvement to any
size order creates competition for the
best execution of all orders, without
unduly burdening competition.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
6 The
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 In Amendment No. 1, BSE requested a waiver
of the 30-day operative delay.
2 17
additional year. The Pilot Program
allows BOX to have no minimum size
requirement for orders entered into the
PIP process.6 The proposed rule change
retains the text of Supplementary
Material .01 to Section 18 of Chapter V
of the BOX Rules and seeks to extend
the operation of the PIP Pilot Program
until July 18, 2008.
The Exchange notes that the PIP Pilot
Program provides small customer orders
with benefits not available under the
rules of other exchanges. One of the
important factors of the PIP Pilot
Program is that it guarantees members
the right to trade with their customer
orders that are less than 50 contracts. In
particular, any order entered into the
PIP is guaranteed an execution at the
end of the auction at a price at least a
penny better than the national best bid
or offer.
In further support of this proposed
rule change, and as required by the
Original PIP Pilot Program Approval
Order, the Exchange represents that it
has been submitting to the Commission
a monthly PIP Pilot Program Report,
offering detailed data from and analysis
of the PIP Pilot Program.
Pilot Program is currently set to expire on
July 18, 2007. See Securities Exchange Act Release
No. 54066 (June 29, 2006), 71 FR 38434 (July 6,
2006) (SR–BSE–2006–24); See also Securities
Exchange Act Release Nos. 52149 (July 28, 2005),
70 FR 44704 (August 3, 2005) (SR–BSE–2005–22);
and 49068 (January 13, 2004), 69 FR 2775 (January
20, 2004) (SR–BSE–2002–15) (‘‘Original PIP Pilot
Program Approval Order’’).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00047
Fmt 4703
Sfmt 4703
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 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: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this 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) 9 of the Act and Rule
19b–4(f)(6) thereunder.10 As required
under Rule 19b–4(f)(6)(iii),11 the
Exchange provided the Commission
with written notice of its intent to file
the proposed rule change, along with a
brief description and text of the
proposed rule change, at least five
business days prior to the date of the
filing of the proposed rule change.
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
BSE requests that the Commission
waive the 30-day operative delay, as
specified in Rule 19b–4(f)(6)(iii),14
which would make the rule change
effective and operative upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver
would allow the PIP Pilot Program to
continue without interruption through
July 18, 2008.15 Accordingly, the
Commission designates the proposed
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 Id.
15 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 17
E:\FR\FM\10JYN1.SGM
10JYN1
Federal Register / Vol. 72, No. 131 / Tuesday, July 10, 2007 / Notices
rule change operative upon filing with
the Commission.
At any time within 60 days of the
filing of such 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.16
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–BSE–2007–27 on the
subject line.
jlentini on PROD1PC65 with NOTICES
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–2007–27. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
16 The effective date of the original proposed rule
is June 26, 2007. The effective date of Amendment
No. 1 is June 27, 2007. For purposes of calculating
the 60-day period within which the Commission
may summarily abrogate the proposed rule change
under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
June 27, 2007, the date on which the BSE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
VerDate Aug<31>2005
16:17 Jul 09, 2007
Jkt 211001
between the hours of 10 a.m. and 3 p.m.
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–2007–27 and should
be submitted on or before July 31, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–13309 Filed 7–9–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55976; File No. SR–CBOE–
2003–41]
Self-Regulatory Organizations;
Chicago Board Options Exchange
Incorporated; Order Granting Approval
of Proposed Rule Change as Modified
by Amendment No. 4 To List and Trade
Options on Corporate Debt Securities
June 28, 2007.
I. Introduction
On September 22, 2003, the Chicago
Board Options Exchange Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’), 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 list and trade options on
corporate debt securities (‘‘CDSOs’’). On
March 1, 2003, CBOE filed Amendment
No. 1 to the proposed rule change.
CBOE filed Amendment No. 2 to the
proposed rule change on August 24,
2005. CBOE filed Amendment No. 3 to
the proposed rule change on May 26,
2006. On June 13, 2006, the proposed
rule change, as amended by
Amendment Nos. 1, 2, and 3, was
published in the Federal Register.3
CBOE filed Amendment No. 4 on July
14, 2006.4 The Commission received
one comment letter on the proposal.5
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. 53935
(June 2, 2006), 71 FR 34174.
4 In Amendment No. 4, CBOE made minor
technical changes to the proposed rule text.
5 See Letter from Mary C.M. Kuan, Vice President
and Assistant General Counsel, The Bond Market
PO 00000
17 17
37551
On October 31, 2006, CBOE filed a
response to the comment.6 This order
approves the proposed rule change, as
amended.
II. Description of the Proposed Rule
Change
(a) Background
Over-the-counter (‘‘OTC’’)
transactions in corporate debt securities
are publicly reported through the
NASD’s Trade Reporting and
Compliance Engine (‘‘TRACE’’) system.
CBOE believes that the enhanced
transparency created by TRACE has
given rise to an OTC market in CDSOs,
and that an exchange-traded alternative
for such products may provide a useful
risk management and trading vehicle for
member firms and their customers.
CBOE believes that exchange-listed
CDSOs would have three important
advantages over similar options traded
in the OTC market. First, as a result of
greater standardization of contract
terms, exchange-listed contracts should
develop more liquidity. Second,
counterparty credit risk would be
mitigated because the contracts would
be issued and guaranteed by The
Options Clearing Corporation (‘‘OCC’’).
Finally, the quotation and last-sale data
provided by CBOE and its members
would lead to more transparent markets.
CBOE believes that offering CDSOs
would create competition with the OTC
market and expand the universe of
listed products available to interested
market participants.
(b) Listing Standards
The Exchange has proposed CBOE
Rules 5.3.10 and 5.4.14 for the initial
listing and continued maintenance
standards, respectively, for CDSOs. The
Exchange proposes that for initial
listing, a CDSO must satisfy the
following criteria:
• The original public sale of a
corporate debt security on which
options transactions will be effected on
the Exchange shall be at least a
$250,000,000 principal amount.
• Trading volume (in all markets in
which the underlying corporate debt
security is traded) has been at least
$100,000,000 in notional value over the
preceding six months.
• The corporate debt security has a
minimum aggregate par value or ‘‘float’’
of $200,000,000.
1 15
Frm 00048
Fmt 4703
Sfmt 4703
Association (‘‘TBMA’’), to Nancy M. Morris,
Secretary, Commission, dated August 25, 2006
(‘‘TBMA Letter’’).
6 See Letter from Angelo Evangelou, Assistant
Secretary, CBOE, to Ronesha Butler, Special
Counsel, Commission, dated October 25, 2006
(‘‘Response’’).
E:\FR\FM\10JYN1.SGM
10JYN1
]]>Agencies
[Federal Register Volume 72, Number 131 (Tuesday, July 10, 2007)]
[Notices]
[Pages 37549-37551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13309]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55999; File No. SR-BSE-2007-27]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto To Extend a Pilot Program That Allows for
No Minimum Size Order Requirement for the Price Improvement Period
Process on the Boston Options Exchange
July 2, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 37550]]
``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 26, 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 BSE. The
BSE has designated 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 proposed rule change
effective upon filing with the Commission. On June 27, 2007, BSE filed
Amendment No. 1 to the proposed rule change.\5\ 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).
\5\ In Amendment No. 1, BSE requested a waiver of the 30-day
operative delay.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE proposes to amend the rules of the Boston Options Exchange
(``BOX'') to extend the BOX pilot program that permits BOX to have no
minimum size requirement for orders entered into the Price Improvement
Period (``PIP'') process (``PIP Pilot Program''). The text of the
proposed rule change is available on BSE's Web site at: https://
www.bostonoptions.com, at BSE's principal office, and at the
Commission's Public Reference Room.
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
The purpose of the proposed rule change is to extend a Pilot
Program under the Rules of the BOX for an additional year. The Pilot
Program allows BOX to have no minimum size requirement for orders
entered into the PIP process.\6\ The proposed rule change retains the
text of Supplementary Material .01 to Section 18 of Chapter V of the
BOX Rules and seeks to extend the operation of the PIP Pilot Program
until July 18, 2008.
---------------------------------------------------------------------------
\6\ The Pilot Program is currently set to expire on July 18,
2007. See Securities Exchange Act Release No. 54066 (June 29, 2006),
71 FR 38434 (July 6, 2006) (SR-BSE-2006-24); See also Securities
Exchange Act Release Nos. 52149 (July 28, 2005), 70 FR 44704 (August
3, 2005) (SR-BSE-2005-22); and 49068 (January 13, 2004), 69 FR 2775
(January 20, 2004) (SR-BSE-2002-15) (``Original PIP Pilot Program
Approval Order'').
---------------------------------------------------------------------------
The Exchange notes that the PIP Pilot Program provides small
customer orders with benefits not available under the rules of other
exchanges. One of the important factors of the PIP Pilot Program is
that it guarantees members the right to trade with their customer
orders that are less than 50 contracts. In particular, any order
entered into the PIP is guaranteed an execution at the end of the
auction at a price at least a penny better than the national best bid
or offer.
In further support of this proposed rule change, and as required by
the Original PIP Pilot Program Approval Order, the Exchange represents
that it has been submitting to the Commission a monthly PIP Pilot
Program Report, offering detailed data from and analysis of the PIP
Pilot Program.
2. Statutory Basis
The Exchange believes that the data demonstrates that there is
sufficient investor interest and demand to extend the Pilot Program for
another year. The Exchange represents that the proposed rule change is
designed to provide investors with real and significant price
improvement regardless of the size of the order. Accordingly, the
Exchange believes that the proposal is consistent with the requirements
of Section 6(b) of the Act,\7\ in general, and Section 6(b)(5) of the
Act,\8\ in particular, in that it is designed to provide price
improvement to any order, which is consistent with the public interest
and protection of investors from a best execution standpoint.
Additionally, the Exchange believes that price improvement to any size
order creates competition for the best execution of all orders, without
unduly burdening competition.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 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
The Exchange 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: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this 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) \9\ of the Act and Rule 19b-4(f)(6) thereunder.\10\
As required under Rule 19b-4(f)(6)(iii),\11\ the Exchange provided the
Commission with written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of the filing of
the proposed rule change.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The BSE requests that the Commission
waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii),\14\ which would make the rule change effective and
operative upon filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would allow the PIP Pilot Program
to continue without interruption through July 18, 2008.\15\
Accordingly, the Commission designates the proposed
[[Page 37551]]
rule change operative upon filing with the Commission.
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ Id.
\15\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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.\16\
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\16\ The effective date of the original proposed rule is June
26, 2007. The effective date of Amendment No. 1 is June 27, 2007.
For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on June 27, 2007, the date on which the BSE submitted
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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 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-2007-27 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-2007-27. 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. 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-2007-27 and should be
submitted on or before July 31, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-13309 Filed 7-9-07; 8:45 am]
BILLING CODE 8010-01-P
