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]

Download as PDF 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 VerDate Aug<31>2005 15:29 Sep 12, 2007 Jkt 211001 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. PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 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 E:\FR\FM\13SEN1.SGM Continued 13SEN1 52402 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 ebenthall on PRODPC61 with NOTICES 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. VerDate Aug<31>2005 15:29 Sep 12, 2007 Jkt 211001 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 Fmt 4703 Sfmt 4703 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 http://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 E:\FR\FM\13SEN1.SGM 13SEN1 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 (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–2007–43 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] ebenthall on PRODPC61 with NOTICES BILLING CODE 8010–01–P 13 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:29 Sep 12, 2007 Jkt 211001 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 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 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 (http://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 (http:// 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 E:\FR\FM\13SEN1.SGM Continued 13SEN1

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.
---------------------------------------------------------------------------

    \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\
---------------------------------------------------------------------------

    \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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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).
---------------------------------------------------------------------------

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-2007-43 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 (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-2007-43 and should be 
submitted on or before October 4, 2007.
---------------------------------------------------------------------------

    \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