Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Relating to Exchange Fees and Charges, 52401-52403 [E7-18076]
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Federal Register / Vol. 72, No. 177 / Thursday, September 13, 2007 / Notices
of a broker-dealer will convert or misuse
customer funds or securities and to
assure that the price of the security the
customer purchases has not moved
substantially from the date the customer
decided to purchase that security.
In the Approval Order for Rule 2821
we stated,
ebenthall on PRODPC61 with NOTICES
[Proposed Rule 2821] is designed to curb
sales practice abuses in deferred variable
annuities. Its recommendation requirements
provide a specific framework for a brokerdealer’s suitability analysis of these
securities. By setting forth factors that a
broker-dealer must specifically consider in
recommending deferred variable annuities
and requiring the registered representative to
obtain certain information from his or her
customers, the proposed rule should improve
communications between registered
representatives and customers regarding
these securities. The supervisory review
component should foster a thorough
analytical review of every deferred variable
annuity transaction in a timeframe that will
limit the possibility of unsuitable
recommendations and transactions. The
proposed rule as a whole is geared to
protecting investors by requiring firms to
implement more robust compliance cultures,
and to give clear consideration of the
suitability of these complex products.
Further, we found that Rule 2821 is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest.
Consequently, we approved NASD’s
proposed Rule 2821.
As we believe the NASD’s Rule 2821
to be in the public interest but a brokerdealer would be burdened with
additional requirements under
Exchange Act Rules 15c3–1 and 15c3–
3 were it to comply with Rule 2821, we
must balance the investor protections
provided by Rules 15c3–1 and 15c3–3
with those provided by Rule 2821. For
this reason, we have specifically
tailored the above-described exemption.
First, the exemption is specifically
limited to situations where a brokerdealer has failed to promptly transmit
‘‘a check made payable to an insurance
company for the purchase of a deferred
variable annuity product,’’ and ‘‘the
transaction is subject to the principal
review requirements of NASD Rule 2821
and a registered principal has reviewed
and determined whether he or she
approves of the purchase or exchange of
the deferred variable annuity within
seven business days in accordance with
that rule.’’ In all other situations where
a check is received by a broker-dealer
and is not promptly forwarded, the full
provisions of both Rule 15c3–1 and
15c3–3 still apply.
Second, the exemption requires a
broker-dealer to promptly transmit such
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checks no later than noon of the
business day following the date a
registered principal reviews and
determines whether he or she approves
of the purchase or exchange of the
deferred variable annuity. This is
designed to assure that the broker-dealer
holds the customer’s check no longer
than is necessary to comply with Rule
2821.
Third, a broker-dealer must maintain
a copy of each such check and create a
record of the date the check was
received from the customer and the date
the check was transmitted to the
insurance company if approved, or
returned to the customer if rejected.
This requirement will allow the brokerdealer’s compliance and internal audit
departments, as well as Commission,
self-regulatory organization, and other
examiners to verify that a broker-dealer
is complying with the provisions of this
exemption.
For the foregoing reasons, the
Commission finds that granting the
above-described exemption is necessary
and appropriate in the public interest,
and is consistent with the protection of
investors.
III. Conclusion
Accordingly, it is ordered, pursuant to
Section 36 of the Exchange Act 7 that, a
broker-dealer shall be exempt from any
additional requirements of Rules 15c3–
1 or 15c3–3 due solely to a failure to
promptly transmit a check made
payable to an insurance company for the
purchase of a deferred variable annuity
product by noon of the business day
following the date the broker-dealer
receives the check from the customer,
provided:
(i) The transaction is subject to the
principal review requirements of NASD
Rule 2821 and a registered principal has
reviewed and determined whether he or
she approves of the purchase or
exchange of the deferred variable
annuity within seven business days in
accordance with that rule;
(ii) the broker-dealer promptly
transmits the check no later than noon
of the business day following the date
a registered principal reviews and
determines whether he or she approves
of the purchase or exchange of the
deferred variable annuity; and
7 Section 36 of the Exchange Act authorizes the
Commission, by rule, regulation, or order, to
conditionally or unconditionally exempt any
person, security, or transaction, or any class or
classes of persons, securities, or transactions from
any provision or provisions of the Exchange Act or
any rule or regulation thereunder, to the extent that
such exemption is necessary or appropriate in the
public interest, and is consistent with the
protection of investors.
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52401
(iii) the broker-dealer maintains a
copy of each such check and creates a
record of the date the check was
received from the customer and the date
the check was transmitted to the
insurance company if approved, or
returned to the customer if rejected.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E7–18023 Filed 9–12–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56371; File No. SR–BSE–
2007–43]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to
Exchange Fees and Charges
September 7, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
31, 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
BSE. On September 6, 2007, the BSE
submitted Amendment No. 1 to the
proposed rule change. The BSE has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the BSE under
Section 19(b)(3)(A)(ii) of the Act,3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, 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 the
Boston Options Exchange (‘‘BOX’’) Fee
Schedule in order to revise certain
transaction fees for issues that trade as
part of the Penny Pilot Program.5
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 See Securities Exchange Act Release No. 55155
(January 23, 2007) 72 FR 4741 (February 1, 2007)
2 17
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Federal Register / Vol. 72, No. 177 / Thursday, September 13, 2007 / Notices
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 revise the existing BOX Fee
Schedule in conjunction with the Penny
Pilot Program. The Exchange plans to
introduce the Make or Take pricing
structure for all classes contained in the
Penny Pilot Program.6 The Exchange is
proposing to amend the BOX Fee
Schedule in order to make the following
changes to certain fees and charges that
are assessed to Participants in the issues
referenced below, effective as of the first
trading day of September 2007.7
Transaction Fees for Classes Contained
in the Penny Pilot
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The Exchange is proposing to
implement a Liquidity Make or Take
pricing structure for executed
transactions in issues participating in
the Penny Pilot Program. Under the
proposed Fee Schedule change, orders
that add or ‘‘make’’ liquidity to the BOX
Book will receive a transaction credit
upon execution. BOX Market Makers
will receive a credit of $0.30 per
contract. All other Participants will
receive a credit of $0.25 per contract.
Any order, including an order with a
Fill and Kill designation, which
executes against an order which is being
exposed before being placed on the BOX
Book, will be deemed to be making
(SR–BSE–2006–49) (‘‘Original Penny Pilot Program
Approval Order’’). See also Securities Exchange Act
Release No. 56149 (July 26, 2007), 72 FR 42450
(August 2, 2007) (SR–BSE–2007–38).
6 The Original Penny Pilot Program Approval
Order, supra note 5, lists the initial thirteen options
classes currently participating in the Penny Pilot
Program. If the Penny Pilot Program is expanded to
introduce more participating options classes, the
Make or Take Pricing model will also apply to those
options classes. Furthermore, if the Penny Pilot
Program is extended, the Make or Take Pricing
model will also be extended accordingly.
7 Participating classes are listed in Section 33 to
Chapter V of the BOX Rules.
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liquidity and will receive a transaction
credit upon execution.
The Transaction Fee for all
Participants that ‘‘take’’ liquidity from
the BOX Book will be $0.45 per
contract. This fee will be applied to all
Participants, including Market Makers,
Broker-Dealers and Executing
Participants executing orders on behalf
of Public Customers. Any order,
including an order with a Fill and Kill
designation, which takes liquidity by
trading immediately upon entry to the
BOX Book or following its exposure as
part of NBBO filtering will be assessed
the $0.45 per contract fee.
Linkage Fees
Linkage Orders executed at BOX are
subject to the same billing treatment as
other Broker-Dealer orders. Since
Linkage Orders that are sent to and
executed on BOX will be taking
liquidity, these orders will be assessed
a $0.45 per contract fee. Linkage Orders
that are not executed upon receipt are
rejected back to the sender and are
never posted in the BOX Book.
Therefore, a Linkage Order would never
be eligible to receive a credit of the
Transaction Fee.
MAC and Mini MAC Exemption
No MAC or MiniMAC fees will be
charged for classes contained in the
Liquidity Make or Take pricing
structure. In addition, the trades in
these classes will not count toward the
calculation of Average Daily Volume
rebates for BOX Market Makers.
Transactions Exempted From the
Liquidity Make or Take Model
The following transactions will be
exempt from the Liquidity Make or Take
pricing structure as they are deemed to
neither take nor make liquidity:
Transactions which occur on the
opening or re-opening of trading and
transactions on both sides of a PIP, with
the exception of unrelated orders that
interact with an Improvement Auction,
which will be charged a ‘‘take’’ fee.
Transactions which are exempt from the
Liquidity Make or Take pricing
structure will be subject to standard
transaction fees as stated in the Fee
Schedule.
2. Statutory Basis
BSE believes that the proposed rule
change is consistent with Section 6(b) of
the Act,8 in general, and furthers the
objectives of Section 6(b)(4) of the Act,9
in particular, in that it is designed to
provide for the equitable allocation of
8 15
9 15
PO 00000
U.S.C. 78f(b)
U.S.C. 78f(b)(4).
Frm 00059
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dues, fees and other charges among its
members and issuers and other persons
using its facilities.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and subparagraph (f)(2) of
Rule 19b–4 11 thereunder because it
establishes or changes a due, fee or
other charge imposed by the Exchange.
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 the furtherance of the
purposes of the Act.12
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–2007–43 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
10 15
U.S.C. 78s(b)(3)(A)
CFR 240.19b–4(f)(2)
12 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 September 6, 2007, the
date on which the BSE filed Amendment No. 1. See
15 U.S.C. 78s(b)(3)(C).
11 17
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Federal Register / Vol. 72, No. 177 / Thursday, September 13, 2007 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BSE–2007–43. 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 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–2007–43 and should
be submitted on or before October 4,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–18076 Filed 9–12–07; 8:45 am]
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BILLING CODE 8010–01–P
13 17
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56375; File No. SR–NASD–
2004–183]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc. (n/k/a Financial Industry
Regulatory Authority, Inc.); Notice of
Filing of Amendment Nos. 3 and 4 and
Order Granting Accelerated Approval
of the Proposed Rule, as Amended,
Related to Sales Practice Standards
and Supervisory Requirements for
Transactions in Deferred Variable
Annuities
September 7, 2007.
I. Introduction
On December 14, 2004, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 1
(‘‘Exchange Act’’ or ‘‘Act’’) and Rule
19b–4 2 thereunder, proposed new Rule
2821 (‘‘Proposed Rule 2821’’) relating to
the sales practice standards and
supervisory and training requirements
applicable to transactions in deferred
variable annuities.3 Proposed Rule 2821,
as amended by Amendment No. 1, was
published for comment in the Federal
Register on July 21, 2005.4 The
Commission received approximately
1500 comments on the proposal.5 NASD
filed Amendment No. 2 on May 4, 2006,
which addressed the comments and
proposed responsive amendments.
Amendment No. 2 was published for
comment in the Federal Register on
June 28, 2006.6 The Commission
received approximately 1950 comments
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 On July 26, 2007, the Commission approved a
proposed rule change filed by NASD to amend
NASD’s Certificate of Incorporation to reflect its
name change to Financial Industry Regulatory
Authority Inc., or FINRA, in connection with the
consolidation of the member firm regulatory
functions of NASD and NYSE Regulation, Inc. See
Exchange Act Release No. 56146 (July 26, 2007); 72
FR 42190 (Aug. 1, 2007).
4 See Exchange Act Release No. 52046A (July 19,
2005); 70 FR 42126 (July 21, 2005) (SR–NASD–
2004–183).
5 Approximately 1300 of these comments,
primarily from licensed insurance professionals and
variable product salespersons, are virtually
identical. These letters are referred to herein, and
on the list of comments on the Commission’s Web
site as ‘‘Letter Type A.’’ The Commission also
received multiple copies of other letters, which we
refer to as Letters Type B, C, D, E, F, G and H,
below.
6 See Exchange Act Release No. 54023 (June 21,
2006); 71 FR 36840 (June 28, 2006) (SR–NASD–
2004–183).
2 17
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52403
on Amendment No. 2.7 To further
explain and modify certain provisions
of Proposed Rule 2821 in response to
comments, NASD filed Amendment No.
3 on November 15, 2006 and
Amendment No. 4 on March 5, 2007.
Amendment No. 4 supersedes all of the
previous amendments in their entirety.
All of the comments that the
Commission has received are available
on the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
This order provides notice of
Amendment Nos. 3 and 4 to the
proposed rule and approves the
proposed rule as amended on an
accelerated basis.8
II. Description of the Proposal
Proposed Rule 2821 would create
recommendation requirements
(including a suitability obligation),
principal review and approval
requirements, and supervisory and
training requirements tailored
specifically to transactions in deferred
variable annuities. It is intended to
supplement, not replace, NASD’s other
rules relating to suitability, supervisory
review, supervisory procedures, and
training. Thus, to the extent Proposed
Rule 2821 does not apply to a particular
transaction, NASD’s general rules on
suitability, supervisory review,
supervisory procedures, and training
continue to govern when applicable.9
The text of the proposed rule is
available on FINRA’s Web site (https://
www.finra.org), at FINRA’s principal
office, and at the Commission’s Public
Reference Room.
Proposed Rule 2821 would apply to
the purchase or exchange of a deferred
variable annuity and to an investor’s
initial subaccount allocations.10 It
7 Approximately 1700 of these comments,
primarily from licensed insurance professionals and
variable product salespersons, are virtually
identical. These letters are referred to herein as
‘‘Letter Type B.’’
8 NASD granted consent for the Commission to
approve the proposed rule beyond the timeframes
set forth in section 19(b)(2) of the Act.
9 The general suitability obligation requires a
broker-dealer to consider its customer’s ability to
understand the security being recommended,
including changes in the customer’s ability to
understand, monitor, and make further decisions
regarding securities over time.
10 As NASD noted in Amendment No. 2, the
proposed rule focuses on customer purchases and
exchanges of deferred variable annuities, areas that,
to date, have given rise to many of the sales practice
abuses associated with variable annuity products.
See Exchange Act Release No. 52046A, at 3–5
(discussing various questionable sales practices that
NASD examinations and investigations have
uncovered and the actions NASD has taken to
address those practices). The proposed rule would
thus cover a standalone purchase of a deferred
variable annuity and an exchange of one deferred
variable annuity for another deferred variable
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]]>Agencies
[Federal Register Volume 72, Number 177 (Thursday, September 13, 2007)]
[Notices]
[Pages 52401-52403]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18076]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56371; File No. SR-BSE-2007-43]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change,
as Modified by Amendment No. 1, Relating to Exchange Fees and Charges
September 7, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 31, 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 BSE.
On September 6, 2007, the BSE submitted Amendment No. 1 to the proposed
rule change. The BSE has designated this proposal as one establishing
or changing a due, fee, or other charge imposed by the BSE under
Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change, as amended, from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE proposes to amend the Boston Options Exchange (``BOX'') Fee
Schedule in order to revise certain transaction fees for issues that
trade as part of the Penny Pilot Program.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 55155 (January 23,
2007) 72 FR 4741 (February 1, 2007) (SR-BSE-2006-49) (``Original
Penny Pilot Program Approval Order''). See also Securities Exchange
Act Release No. 56149 (July 26, 2007), 72 FR 42450 (August 2, 2007)
(SR-BSE-2007-38).
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[[Page 52402]]
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 revise the existing
BOX Fee Schedule in conjunction with the Penny Pilot Program. The
Exchange plans to introduce the Make or Take pricing structure for all
classes contained in the Penny Pilot Program.\6\ The Exchange is
proposing to amend the BOX Fee Schedule in order to make the following
changes to certain fees and charges that are assessed to Participants
in the issues referenced below, effective as of the first trading day
of September 2007.\7\
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\6\ The Original Penny Pilot Program Approval Order, supra note
5, lists the initial thirteen options classes currently
participating in the Penny Pilot Program. If the Penny Pilot Program
is expanded to introduce more participating options classes, the
Make or Take Pricing model will also apply to those options classes.
Furthermore, if the Penny Pilot Program is extended, the Make or
Take Pricing model will also be extended accordingly.
\7\ Participating classes are listed in Section 33 to Chapter V
of the BOX Rules.
---------------------------------------------------------------------------
Transaction Fees for Classes Contained in the Penny Pilot
The Exchange is proposing to implement a Liquidity Make or Take
pricing structure for executed transactions in issues participating in
the Penny Pilot Program. Under the proposed Fee Schedule change, orders
that add or ``make'' liquidity to the BOX Book will receive a
transaction credit upon execution. BOX Market Makers will receive a
credit of $0.30 per contract. All other Participants will receive a
credit of $0.25 per contract. Any order, including an order with a Fill
and Kill designation, which executes against an order which is being
exposed before being placed on the BOX Book, will be deemed to be
making liquidity and will receive a transaction credit upon execution.
The Transaction Fee for all Participants that ``take'' liquidity
from the BOX Book will be $0.45 per contract. This fee will be applied
to all Participants, including Market Makers, Broker-Dealers and
Executing Participants executing orders on behalf of Public Customers.
Any order, including an order with a Fill and Kill designation, which
takes liquidity by trading immediately upon entry to the BOX Book or
following its exposure as part of NBBO filtering will be assessed the
$0.45 per contract fee.
Linkage Fees
Linkage Orders executed at BOX are subject to the same billing
treatment as other Broker-Dealer orders. Since Linkage Orders that are
sent to and executed on BOX will be taking liquidity, these orders will
be assessed a $0.45 per contract fee. Linkage Orders that are not
executed upon receipt are rejected back to the sender and are never
posted in the BOX Book. Therefore, a Linkage Order would never be
eligible to receive a credit of the Transaction Fee.
MAC and Mini MAC Exemption
No MAC or MiniMAC fees will be charged for classes contained in the
Liquidity Make or Take pricing structure. In addition, the trades in
these classes will not count toward the calculation of Average Daily
Volume rebates for BOX Market Makers.
Transactions Exempted From the Liquidity Make or Take Model
The following transactions will be exempt from the Liquidity Make
or Take pricing structure as they are deemed to neither take nor make
liquidity: Transactions which occur on the opening or re-opening of
trading and transactions on both sides of a PIP, with the exception of
unrelated orders that interact with an Improvement Auction, which will
be charged a ``take'' fee. Transactions which are exempt from the
Liquidity Make or Take pricing structure will be subject to standard
transaction fees as stated in the Fee Schedule.
2. Statutory Basis
BSE believes that the proposed rule change is consistent with
Section 6(b) of the Act,\8\ in general, and furthers the objectives of
Section 6(b)(4) of the Act,\9\ in particular, in that it is designed to
provide for the equitable allocation of dues, fees and other charges
among its members and issuers and other persons using its facilities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b)
\9\ 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
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4 \11\
thereunder because it establishes or changes a due, fee or other charge
imposed by the Exchange. 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 the furtherance of the purposes of the
Act.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A)
\11\ 17 CFR 240.19b-4(f)(2)
\12\ 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 September 6, 2007, the date on which the BSE filed
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-2007-43 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission,
[[Page 52403]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BSE-2007-43. 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 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-2007-43 and should be
submitted on or before October 4, 2007.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-18076 Filed 9-12-07; 8:45 am]
BILLING CODE 8010-01-P
