Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto to Amend the Existing Fee Schedule, 44891-44892 [E7-15545]

Download as PDF Federal Register / Vol. 72, No. 153 / Thursday, August 9, 2007 / Notices amount of a class of preferred stock or the creation of a pari passu issue is required to be approved by a majority of the outstanding shares of the class or classes to be affected by such change. However, a majority vote would not be required if, at the time a class of preferred stock was created, the preferred shareholders gave the board of directors the authority to increase the authorized amount of a series of preferred stock or create an additional series of preferred stock equal in preference. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 III. Discussion Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto to Amend the Existing Fee Schedule After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange and, in particular, with section 6(b)(5) of the Act,4 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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.5 The Commission notes that the proposed rule change will make Amex’s listing requirements relating to minimum preferred voting rights substantially similar to those of the New York Stock Exchange LLC (‘‘NYSE’’).6 The Commission believes that the proposed rule change may provide additional flexibility to issuers of preferred stock with regard to their ability to raise capital, while at the same time, ensuring that preferred shareholders will retain important voting rights. The proposal also ensures that the rights and privileges of the preferred shareholders are protected and cannot be changed without prior approval of the preferred shareholders. IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,7 that the proposed rule change (SR–Amex–2007– 38) be, and hereby is, approved. mstockstill on PROD1PC66 with NOTICES 4 15 U.S.C. 78f(b)(5). approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 See Section 313.00(C) of the NYSE Listed Company Manual. 7 15 U.S.C. 78s(b)(2). 5 In VerDate Aug<31>2005 18:25 Aug 08, 2007 Jkt 211001 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–15541 Filed 8–8–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56194; File No. SR–BSE– 2007–32] August 2, 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 July 5, 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, II, and III below, which Items have been substantially prepared by the Exchange. The BSE has designated this proposal as one changing a due, fee, or other charge 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. On July 20, 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, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The BSE proposes to amend certain transaction fees set forth in the Boston Equities Exchange (‘‘BeX’’) fee schedule. The text of the proposed rule change is available at http:// www.bostonstock.com, at the BSE, and at the Commission’s Public Reference Room. 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 5 In Amendment No. 1, the Exchange replaced the term Intermarket Sweep Order (‘‘ISO’’) with the phrase ‘‘order routed as a part of an NMS Cross Order’’ and the term ‘‘Reg NMS cross’’ with the phrase ‘‘NMS Cross Order’’. In addition, the Exchange updated the BeX fee schedule to reflect these changes. 44891 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 Exchange 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 On November 20, 2006, the BSE filed File No. SR–BSE–2006–44,6 a rule filing that amended the existing BSE fee schedule and established a fee schedule for the BeX, a facility of the Exchange. On March 5, 2007, a subsequent filing, SR–BSE–2007–13,7 was made to add a new Smart Order Routing fee. On June 28, 2007, the Exchange filed an additional fee filing, SR–BSE–2007–29 8 to lower the rate for this service. In this filing, the Exchange is proposing to implement a fee for orders routed as a part of an NMS Cross Order,9 which the Exchange has developed to help firms comply with the tradethrough requirements of Regulation NMS. An NMS Cross Order consists of a priced cross with two quantities: (i) The quantity that the customer wants to cross; and (ii) the ‘‘disinterest’’ quantity, which is the additional single-sided amount that the customer is willing to add in order to fulfill Regulation NMS obligations. When this new order type is received, the Exchange will look at the best bids and offers at all Regulation NMS venues and route orders, as needed, up to the disinterest quantity. The cross will then be executed and reported back to the customer, along with any executions from the routed orders. If the disinterest quantity is not large enough to satisfy the size of the total trade-through on all markets, no orders will be routed and the entire cross will be rejected. 1 15 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 6 See Securities Exchange Act Release No. 54795 (November 20, 2006), 71 FR 68850 (November 28, 2007). 7 See Securities Exchange Act Release No. 55529 (March 26, 2007), 72 FR 15734 (April 2, 2007). 8 See Securities Exchange Act Release No. 56129 (July 25, 2007), 72 FR 42157 (August 1, 2007). 9 See Securities Exchange Act Release No. 55903 (June 13, 2007), 72 FR 33792 (June 19, 2007) (SR– BSE–2007–24). E:\FR\FM\09AUN1.SGM 09AUN1 44892 Federal Register / Vol. 72, No. 153 / Thursday, August 9, 2007 / Notices The orders routed as a result of an NMS Cross Order will be added to the Exchange’s other order routing products and will be charged at a rate of $0.0020 per share if a firm uses its own give-up on another market center and $0.0060 per share if a firm used a BeX provided give-up on another market center. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of section 6(b) of the Act,10 in general, and furthers the objectives of section 6(b)(4) of the Act,11 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 The Exchange has neither solicited nor received comments on the proposed rule change. mstockstill on PROD1PC66 with NOTICES 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 12 and Rule 19b–4(f)(2) thereunder,13 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 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19b–4(f)(2). VerDate Aug<31>2005 18:25 Aug 08, 2007 change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments [Release No. 34–56190; File No. SR–CBOE– 2007–04] • 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 Number SR–BSE–2007–32 on the subject line. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto Amending Its Obvious Error Rule for Equity Options Paper Comments August 2, 2007. • 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–2007–32. 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, 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 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–2007–32 and should be submitted on or before August 30, 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 February 21, 2007, 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 substantially prepared by the Exchange. On July 2, 2007, the CBOE submitted Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–15545 Filed 8–8–07; 8:45 am] BILLING CODE 8010–01–P 14 17 Jkt 211001 SECURITIES AND EXCHANGE COMMISSION PO 00000 CFR 200.30–3(a)(12). Frm 00074 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend CBOE Rule 6.25, which is the Exchange’s rule applicable to the nullification and adjustment of transactions in equity options, to revise its obvious error provision related to ‘‘no bid’’ series. The Exchange is also proposing to make a non-substantive change by adding a cross-reference within the text of Rule 6.25. Below is the text of the proposed rule change. Proposed new language is in italics and proposed deletions are in [brackets]. Chicago Board Options Exchange, Incorporated Rules Rule 6.25—Nullification and Adjustment of Equity Options Transactions RULE 6.25. This Rule governs the nullification and adjustment of transactions involving equity options. Rule 24.16 governs the nullification and adjustment of transactions involving index options and options on ETFs and HOLDRs. Paragraphs (a)(1), [and] (2) 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 supersedes and replaces the original filing in its entirety. The substance of Amendment No. 1 is incorporated into this notice. 2 17 E:\FR\FM\09AUN1.SGM 09AUN1

Agencies

[Federal Register Volume 72, Number 153 (Thursday, August 9, 2007)]
[Notices]
[Pages 44891-44892]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15545]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56194; File No. SR-BSE-2007-32]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto to Amend the Existing Fee Schedule

August 2, 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 July 5, 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, II, 
and III below, which Items have been substantially prepared by the 
Exchange. The BSE has designated this proposal as one changing a due, 
fee, or other charge 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. On July 20, 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, as amended, 
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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
    \5\ In Amendment No. 1, the Exchange replaced the term 
Intermarket Sweep Order (``ISO'') with the phrase ``order routed as 
a part of an NMS Cross Order'' and the term ``Reg NMS cross'' with 
the phrase ``NMS Cross Order''. In addition, the Exchange updated 
the BeX fee schedule to reflect these changes.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE proposes to amend certain transaction fees set forth in the 
Boston Equities Exchange (``BeX'') fee schedule. The text of the 
proposed rule change is available at http://www.bostonstock.com, at the 
BSE, 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 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 Exchange 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
    On November 20, 2006, the BSE filed File No. SR-BSE-2006-44,\6\ a 
rule filing that amended the existing BSE fee schedule and established 
a fee schedule for the BeX, a facility of the Exchange. On March 5, 
2007, a subsequent filing, SR-BSE-2007-13,\7\ was made to add a new 
Smart Order Routing fee. On June 28, 2007, the Exchange filed an 
additional fee filing, SR-BSE-2007-29 \8\ to lower the rate for this 
service.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 54795 (November 20, 
2006), 71 FR 68850 (November 28, 2007).
    \7\ See Securities Exchange Act Release No. 55529 (March 26, 
2007), 72 FR 15734 (April 2, 2007).
    \8\ See Securities Exchange Act Release No. 56129 (July 25, 
2007), 72 FR 42157 (August 1, 2007).
---------------------------------------------------------------------------

    In this filing, the Exchange is proposing to implement a fee for 
orders routed as a part of an NMS Cross Order,\9\ which the Exchange 
has developed to help firms comply with the trade-through requirements 
of Regulation NMS. An NMS Cross Order consists of a priced cross with 
two quantities: (i) The quantity that the customer wants to cross; and 
(ii) the ``disinterest'' quantity, which is the additional single-sided 
amount that the customer is willing to add in order to fulfill 
Regulation NMS obligations.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 55903 (June 13, 
2007), 72 FR 33792 (June 19, 2007) (SR-BSE-2007-24).
---------------------------------------------------------------------------

    When this new order type is received, the Exchange will look at the 
best bids and offers at all Regulation NMS venues and route orders, as 
needed, up to the disinterest quantity. The cross will then be executed 
and reported back to the customer, along with any executions from the 
routed orders. If the disinterest quantity is not large enough to 
satisfy the size of the total trade-through on all markets, no orders 
will be routed and the entire cross will be rejected.

[[Page 44892]]

    The orders routed as a result of an NMS Cross Order will be added 
to the Exchange's other order routing products and will be charged at a 
rate of $0.0020 per share if a firm uses its own give-up on another 
market center and $0.0060 per share if a firm used a BeX provided give-
up on another market center.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of section 6(b) of the Act,\10\ in general, and 
furthers the objectives of section 6(b)(4) of the Act,\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \12\ and Rule 
19b-4(f)(2) thereunder,\13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

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-2007-32 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-2007-32. 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, 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 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-2007-32 and should be 
submitted on or before August 30, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
 Deputy Secretary.
[FR Doc. E7-15545 Filed 8-8-07; 8:45 am]
BILLING CODE 8010-01-P