Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to BOX's Licensing Fees, 2961-2962 [E8-628]

Download as PDF Federal Register / Vol. 73, No. 11 / Wednesday, January 16, 2008 / Notices of the Act 6 and Rule 19b–4(f)(6) 7 thereunder because the proposal does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) by its terms, become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) 8 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay period. The Commission believes that waiver of the 30-day operative delay period is consistent with the protection of investors and the public interest. Specifically, the Commission believes that the proposal would clarify to issuers the Exchange’s existing interpretation of the Sections and codify the interpretation in the Exchange’s rules. Further, the Commission notes that the proposed rule change is identical to Nasdaq Rule 4330.9 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such proposed 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.10 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 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 8 17 CFR 240.19b–4(f)(6)(iii). 9 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 15 U.S.C. 78s(b)(3)(C). Number SR–Amex–2007–89 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments Release No. 34–57114; File No. SR-BSE– 2008–01] • 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–2007–89. 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 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–2007–89 and should be submitted on or before February 6, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–627 Filed 1–15–08; 8:45 am] BILLING CODE 8011–01–P 6 15 jlentini on PROD1PC65 with NOTICES 7 17 VerDate Aug<31>2005 17:55 Jan 15, 2008 Jkt 214001 2961 Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to BOX’s Licensing Fees January 8, 2008. 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 January 2, 2008, the Boston Stock Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange has designated this proposal as one establishing or changing a due, fee, or other charge applicable only to a member, pursuant to 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 from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The BSE is proposing to amend the Fee Schedule of the Boston Options Exchange (‘‘BOX’’). The proposed amendment will increase the fees for transactions in options on certain indices effected by a broker-dealer through its proprietary accounts. The text of the proposed rule change is available at the Exchange, on the Exchange’s Web site at http:// www.bostonstock.com/Regulatory/ effective.aspx, 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 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). 2 17 11 17 PO 00000 CFR 200.30–3(a)(12). Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\16JAN1.SGM 16JAN1 2962 Federal Register / Vol. 73, No. 11 / Wednesday, January 16, 2008 / Notices 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 13, 2006, the Exchange entered into a licensing agreement (‘‘Agreement’’) with The NASDAQ Stock Market, Inc. (‘‘Nasdaq’’) to use various indices and trademarks in connection with the listing and trading of index options on the full value Nasdaq-100 Index (‘‘NDX’’)5 and the reduced value Nasdaq-100 Index (Mini-NDX Index (MNX)).6 The Agreement established a license fee, payable by BOX to Nasdaq, of $0.15 per NDX and MNX contracts traded on BOX. On November 14, 2006, the Exchange established a $0.15 surcharge fee for transactions in options on NDX and MNX.7 As with certain other licensed options, the Exchange adopted a surcharge fee for trading in these options to defray the licensing costs. The Exchange believes that charging the BOX Options Participants that trade these instruments is the most equitable means of recovering the costs of the license. The Agreement between the Exchange and Nasdaq was set to expire on December 31, 2007. The Exchange has recently entered into an extension of the jlentini on PROD1PC65 with NOTICES 5 Nasdaq, Nasdaq-100 and Nasdaq-100 Index are registered trademarks of The Nasdaq Stock Market, Inc. (which with its affiliates are the ‘‘Corporations’’) and are licensed for use by the Boston Options Exchange Group in connection with the trading of options products based on the Nasdaq-100 Index. The product(s) have not been passed on by the Corporations as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s). The Corporations do not guarantee the accuracy and/or uninterrupted calculation of the Nasdaq-100 Index or any data included therein. The Corporations make no warranty, express or implied, as to results to be obtained by licensee, owners of the product(s), or any other person or entity from the use of the Nasdaq-100 Index or any data included therein. The Corporations make no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Nasdaq-100 Index or any data included therein. Without limiting any of the foregoing, in no event shall the Corporations have any liability for any lost profits or special, incidental, punitive, indirect or consequential damages, even if notified of the possibility of such damages. 6 See id. 7 On December 20, 2006, BSE filed Amendment No. 1 to that proposed rule change. See Securities Exchange Act Release No. 55000 (December 21, 2006), 71 FR 78479 (December 29, 2006) (SR–BSE– 2006–47). VerDate Aug<31>2005 17:55 Jan 15, 2008 Jkt 214001 Agreement for the listing and trading of NDX and MNX options. The extension imposes a one cent ($0.01) increase in the per contract license fees charged to BOX by Nasdaq. The proposed rule change would increase the current surcharge fee for transactions in NDX and MNX options by one cent (($0.01), to 16 cents ($0.16). This increase will correspondingly offset the costs incurred by BOX. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of section 6(b) of the Act,8 in general, and section 6(b)(4) of the Act,9 in particular, which requires that an exchange provide for the equitable allocation of reasonable 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 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 Because the foregoing rule change is establishing or changing a due, fee, or other charge applicable only to a member, it has become effective pursuant to section 19(b)(3)(A)(ii) of the Act10 and Rule 19b–4(f)(2) thereunder.11 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. 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. 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b–4(f)(2). 9 15 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 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–2008–01 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–2008–01. 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 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–BSE–2008–01 and should be submitted on or before February 6, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–628 Filed 1–15–08; 8:45 am] BILLING CODE 8011–01–P 12 17 E:\FR\FM\16JAN1.SGM CFR 200.30–3(a)(12). 16JAN1

Agencies

[Federal Register Volume 73, Number 11 (Wednesday, January 16, 2008)]
[Notices]
[Pages 2961-2962]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-628]


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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-57114; File No. SR-BSE-2008-01]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to BOX's Licensing Fees

January 8, 2008.
    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 January 2, 2008, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange has designated this proposal as one establishing or 
changing a due, fee, or other charge applicable only to a member, 
pursuant to 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 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 is proposing to amend the Fee Schedule of the Boston 
Options Exchange (``BOX''). The proposed amendment will increase the 
fees for transactions in options on certain indices effected by a 
broker-dealer through its proprietary accounts.
    The text of the proposed rule change is available at the Exchange, 
on the Exchange's Web site at http://www.bostonstock.com/Regulatory/
effective.aspx, 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

[[Page 2962]]

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 13, 2006, the Exchange entered into a licensing 
agreement (``Agreement'') with The NASDAQ Stock Market, Inc. 
(``Nasdaq'') to use various indices and trademarks in connection with 
the listing and trading of index options on the full value Nasdaq-
100[reg] Index (``NDX'')\5\ and the reduced value Nasdaq-100[reg] Index 
(Mini-NDX[reg] Index (MNX)).\6\ The Agreement established a license 
fee, payable by BOX to Nasdaq, of $0.15 per NDX and MNX contracts 
traded on BOX. On November 14, 2006, the Exchange established a $0.15 
surcharge fee for transactions in options on NDX and MNX.\7\ As with 
certain other licensed options, the Exchange adopted a surcharge fee 
for trading in these options to defray the licensing costs. The 
Exchange believes that charging the BOX Options Participants that trade 
these instruments is the most equitable means of recovering the costs 
of the license.
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    \5\ Nasdaq[reg], Nasdaq-100[reg] and Nasdaq-100 Index[reg] are 
registered trademarks of The Nasdaq Stock Market, Inc. (which with 
its affiliates are the ``Corporations'') and are licensed for use by 
the Boston Options Exchange Group in connection with the trading of 
options products based on the Nasdaq-100 Index[reg]. The product(s) 
have not been passed on by the Corporations as to their legality or 
suitability. The product(s) are not issued, endorsed, sold, or 
promoted by the Corporations. The Corporations make no warranties 
and bear no liability with respect to the product(s). The 
Corporations do not guarantee the accuracy and/or uninterrupted 
calculation of the Nasdaq-100 Index[reg] or any data included 
therein. The Corporations make no warranty, express or implied, as 
to results to be obtained by licensee, owners of the product(s), or 
any other person or entity from the use of the Nasdaq-100 Index[reg] 
or any data included therein. The Corporations make no express or 
implied warranties, and expressly disclaim all warranties of 
merchantability or fitness for a particular purpose or use with 
respect to the Nasdaq-100 Index or any data included therein. 
Without limiting any of the foregoing, in no event shall the 
Corporations have any liability for any lost profits or special, 
incidental, punitive, indirect or consequential damages, even if 
notified of the possibility of such damages.
    \6\ See id.
    \7\ On December 20, 2006, BSE filed Amendment No. 1 to that 
proposed rule change. See Securities Exchange Act Release No. 55000 
(December 21, 2006), 71 FR 78479 (December 29, 2006) (SR-BSE-2006-
47).
---------------------------------------------------------------------------

    The Agreement between the Exchange and Nasdaq was set to expire on 
December 31, 2007. The Exchange has recently entered into an extension 
of the Agreement for the listing and trading of NDX and MNX options. 
The extension imposes a one cent ($0.01) increase in the per contract 
license fees charged to BOX by Nasdaq. The proposed rule change would 
increase the current surcharge fee for transactions in NDX and MNX 
options by one cent (($0.01), to 16 cents ($0.16). This increase will 
correspondingly offset the costs incurred by BOX.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of section 6(b) of the Act,\8\ in general, and section 
6(b)(4) of the Act,\9\ in particular, which requires that an exchange 
provide for the equitable allocation of reasonable 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 
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

    Because the foregoing rule change is establishing or changing a 
due, fee, or other charge applicable only to a member, it has become 
effective pursuant to section 19(b)(3)(A)(ii) of the Act\10\ and Rule 
19b-4(f)(2) thereunder.\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2008-01 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-2008-01. 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 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-BSE-2008-01 and should be 
submitted on or before February 6, 2008.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-628 Filed 1-15-08; 8:45 am]
BILLING CODE 8011-01-P