Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Exchange Fees and Charges To Be Assessed in Connection With the Implementation of an Electronic Registration Process, 3767-3769 [E8-997]

Download as PDF Federal Register / Vol. 73, No. 14 / Tuesday, January 22, 2008 / Notices sroberts on PROD1PC70 with NOTICES 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 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–2007–130 and should be submitted on or before February 12, 2008. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful consideration, 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.8 In particular, the Commission finds that the proposed rule change is consistent with section 6(b)(5) of the Act,9 which requires that the rules of a national securities exchange be designed, among other things, 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. The Commission believes that the Exchange’s proposal is consistent with the Act, and, in particular, reasonably balances the removal of impediments to a free and open market with the protection of investors and the public interest, two principles set forth in section 6(b)(5) of the Act. The 8 In approving this rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 9 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 20:38 Jan 18, 2008 Jkt 214001 Commission notes that a variety of exchange-traded funds seeking to provide (a) investment results that correspond to or exceed twice (200%) the direct performance of a specified stock index, or (b) investment results that correspond to twice (¥200%) the inverse or opposite of the index’s performance, are currently listed and traded on the Exchange.10 In addition, the Commission further believes that heightened suitability standards are appropriate for derivative securities products, including section 107 Securities, that seek to provide investment results that correspond to the direct or inverse performance of an underlying reference asset by a specified multiple and allow for a loss or negative payment at maturity to be accelerated by a specified multiple. Before recommending transactions in these types of leveraged products, Exchange members must have a reasonable basis to believe that the customer can evaluate the special characteristics, and is able to bear the financial risks, of such investment. The Commission expects the Exchange to continue to monitor the application of its suitability requirements, including those under Commentary .05 to Amex Rule 411, as proposed. The Commission finds good cause for approving the proposed rule change prior to the thirtieth day after the date of publication of notice thereof in the Federal Register. The Commission notes that it has approved identical revisions to the initial listing standards for the same type of derivative securities products, as proposed by another national securities exchange.11 With respect to the revisions to Commentary .05 to Amex Rule 411, the Commission believes that the proposal strengthens the suitability standards and raises no new regulatory issues. Accordingly, the Commission finds good cause for approving the proposal on an accelerated basis, pursuant to section 19(b)(2) of the Act. VI. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,12 that the 10 See supra note 5 and accompanying text. 11 See Securities Exchange Act Release No. 57149 (January 15, 2008) (SR–NYSEArca–2007–122) (approving the proposal to make substantively identical revisions to the initial listing standards for Index-Linked Securities listed and/or traded on NYSE Arca, Inc. (‘‘NYSE Arca’’)). See also Securities Exchange Act Release No. 56907 (December 5, 2007), 72 FR 70640 (December 12, 2007) (SR–NYSEArca–2007–122) (providing notice of the proposal to make substantively identical revisions to the initial listing standards for IndexLinked Securities listed and/or traded on NYSE Arca). 12 15 U.S.C. 78s(b)(2). PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 3767 proposed rule change (SR–Amex–2007– 130), as modified by Amendment Nos. 1 and 2 thereto, be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–996 Filed 1–18–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57152; File No. SR–BSE– 2007–55] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Exchange Fees and Charges To Be Assessed in Connection With the Implementation of an Electronic Registration Process January 15, 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 December 21, 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 prepared substantially by the Exchange. On January 11, 2008, BSE filed Amendment No. 1 to the proposed rule change. BSE has designated this proposal as one establishing or changing a member due, fee, or other charge imposed by the Exchange 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 BSE Fee Schedule and the Boston Options Exchange (‘‘BOX’’) Fee Schedule in order to adopt certain fees to be charged 13 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). 1 15 E:\FR\FM\22JAN1.SGM 22JAN1 3768 Federal Register / Vol. 73, No. 14 / Tuesday, January 22, 2008 / Notices to all active members 5 and to all member and participant organizations (collectively, the ‘‘members’’) associated with the implementation of an electronic registration process through the Financial Industry Regulatory Authority’s (‘‘FINRA’’) Web Central Registration Depository (‘‘Web CRD’’). The text of the proposed rule change is available at https:// www.bostonstock.com, the principal offices of the Exchange, and 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. 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 adopt fees associated with the implementation of an electronic registration process through FINRA’s Web CRD, which should, in turn, create a more efficient registration process by migrating from a manual paper-based Exchange procedure for registration to a Web-based registration process that is operated by FINRA. The proposed fees are similar to those fees charged by other self-regulatory organizations that use FINRA’s Web CRD.6 Specifically, the Exchange proposes to adopt the following fees that will be imposed upon all members in connection with their required participation in Web CRD: (a) A FINRA CRD Processing Fee of $85.00; (b) a FINRA Disclosure Processing Fee of $95.00; (c) a FINRA Annual System Processing Fee of $30.00; and (d) fingerprinting fees that will vary sroberts on PROD1PC70 with NOTICES 5 Because BSE ceased operations of its BeX equity market on September 5, 2007, the only active members that this now applies to are those members of BOX. 6 See Securities Exchange Act Release Nos. 51641 (May 2, 2005), 70 FR 24155 (May 6, 2005) (SR– PCX–2005–49); 48066 (June 19, 2003), 68 FR 38409 (June 27, 2003) (SR–AMEX–2003–49); 45112 (November 28, 2001), 66 FR 63086 (December 4, 2001) (SR–NYSE–2001–47); and 53688 (April 20, 2006), 71 FR 24885 (April 27, 2006) (SR–Phlx– 2006–24). VerDate Aug<31>2005 20:38 Jan 18, 2008 Jkt 214001 depending on the submission: For a first card submission the fee will be $30.25; for a second card submission the fee will be $13.00; for a third card submission the fee will be $30.25; for processing fingerprint results where the member had prints processed through a self-regulatory organization and not FINRA, the fee will be $13.00 (collectively, the ‘‘FINRA Fees’’). The Exchange also proposes to adopt: (e) An individual initial registration fee of $60.00; (f) an individual transfer fee for $40.00 with a transfer time period of thirty (30) days; (g) an individual renewal fee for $50.00; and (h) an individual termination fee of $30.00 (collectively, the ‘‘Exchange Fees’’). FINRA will process the fingerprint cards and will make the results available to the Exchange, its members, and member and participant organizations via Web CRD. Members and participant organizations will be instructed to pay the FINRA Fees and the Exchange Fees associated with Web CRD directly to FINRA through Web CRD. FINRA will retain the FINRA Fees and remit the Exchange Fees it collects to BSE. 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 10 and Rule 19b–4(f)(2) 11 thereunder, because it establishes or changes a due, fee, or other charge imposed on members by the Exchange. Accordingly, the proposal is effective 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.12 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act,7 in general, and furthers the objectives of section 6(b)(4) of the Act,8 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its members and issuers and other persons using its facilities in connection with their use of Web CRD. The fees are imposed upon all members equally. The Exchange believes the proposed fees are reasonable in that they are similar to those charged by other self-regulatory organizations that use FINRA’s Web CRD.9 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–2007–55 on the subject line. 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 written comments on the proposed rule change. 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 9 See note 6, supra. 8 15 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 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: 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–2007–55. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will 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 10 15 U.S.C. 78s(b)(3)(A)(ii). 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 January 11, 2008, the date on which the Exchange filed Amendment No. 1. 11 17 E:\FR\FM\22JAN1.SGM 22JAN1 Federal Register / Vol. 73, No. 14 / Tuesday, January 22, 2008 / Notices 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 publicly available. All submissions should refer to File Number SR–BSE–2007–55 and should be submitted on or before February 12, 2008. (‘‘CME Holdings’’). On January 17, 2007, the Exchange filed Amendment No. 1 to the proposed rule change which replaced and superseded the filing. The proposed rule change, as modified by Amendment No. 1, was published for notice and comment in the Federal Register on February 6, 2007.3 The Commission received 174 comment letters from 134 separate commenters on the proposed rule change, including comment letters from CBOT members and legal counsel to CBOT and CBOT members. The CBOE submitted its response to comments on June 15, 2007.4 On June 29, 2007, CBOE filed Partial Amendment No. 2 to the proposal.5 This order approves the proposed rule change, as modified by Amendment Nos. 1 and 2. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–997 Filed 1–18–08; 8:45 am] As compensation for the ‘‘special contribution’’ of time and money that the CBOT expended in the development of the CBOE in the early 1970s, an ‘‘Exercise Right’’ was granted to each ‘‘member of [the CBOT]’’ entitling him or her to become a member of the CBOE without having to acquire a separate CBOE membership.6 This right, established in Article Fifth(b) of the CBOE Certificate of Incorporation BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Release No. 34–57159; File No. SR–CBOE– 2006–106] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval to a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2 Thereto, Relating to an Interpretation of Paragraph (b) of Article Fifth of Its Certificate of Incorporation sroberts on PROD1PC70 with NOTICES January 15, 2008. I. Introduction On December 12, 2006, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt an interpretation of the rules of CBOE in response to the acquisition of the Board of Trade of the City of Chicago, Inc. (‘‘CBOT’’) by Chicago Mercantile Exchange Holdings, Inc. 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Aug<31>2005 20:38 Jan 18, 2008 Jkt 214001 II. Description of the Proposed Rule Change A. Background 3 See Securities Exchange Act Release No. 55190 (January 29, 2007), 72 FR 5472 (SR–CBOE–2006– 106) (‘‘Notice’’). 4 See Letter from Michael L. Meyer, Schiff Hardin, to Nancy M. Morris, Secretary, Commission, dated June 15, 2007 (‘‘CBOE Response to Comments’’). 5 The CBOE submitted an opinion of counsel as Exhibit 3f to Amendment 1 to its proposal. See Letter from Wendell Fenton, Esq., Richards, Layton & Finger, to Joanne Moffic-Silver, General Counsel and Corporate Secretary, CBOE, dated January 16, 2007 (‘‘First Opinion of Counsel’’). CBOE subsequently submitted an updated legal opinion via Partial Amendment No. 2, which opines that the proposed rule change embodied in SR–CBOE– 2006–106 constitutes an interpretation of Article Fifth(b), and not an amendment of Article Fifth(b), consistent with the conclusions reached in the opinion letters of Delaware counsel that CBOE submitted to the Commission in connection with CBOE rule filings SR–CBOE–2004–16 and SR– CBOE–2005–19. See Letter from Wendell Fenton, Esq., Richards, Layton & Finger, to Joanne MofficSilver, General Counsel and Corporate Secretary, CBOE, dated June 28, 2007 (‘‘Second Opinion of Counsel’’). The Commission believes that because Partial Amendment No. 2 raises no new or novel issues, it is technical in nature and not subject to separate notice and comment. 6 As CBOE explained in the notice of its proposal, the ‘‘special contribution’’ of the members of CBOT referred to in Article Fifth(b) consisted primarily of CBOT’s providing the seed capital for the start-up of CBOE in the early 1970s by means of direct cash expenditures, CBOT’s guarantee of a bank loan to CBOE to fund additional CBOE start-up costs, and CBOT’s contribution of intellectual property. See Notice, supra note 3, 72 FR at 5473. PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 3769 (‘‘Article Fifth(b)’’), provides, in relevant part: In recognition of the special contribution made to the organization and development of the [CBOE] by the members of [the CBOT] * * * every present and future member of [the CBOT] who applies for membership in the [CBOE] and who otherwise qualifies shall, so long as he remains a member of said Board of Trade, be entitled to be a member of the [CBOE] notwithstanding any such limitation on the number of members and without the necessity of acquiring such membership for consideration or value from the [CBOE], its members or elsewhere. Article Fifth(b) states that no amendment may be made to it without the approval of at least 80% of those CBOT members who have ‘‘exercised’’ their right to be CBOE members and 80% of all other CBOE members. Since Article Fifth(b) does not define what a ‘‘member of [the CBOT]’’ means, on several occasions in the past, the CBOE has interpreted the meaning of Article Fifth(b), in particular the term ‘‘member of [the CBOT],’’ in response to changes in the ownership structure of the CBOT. On each such occasion, the CBOE and CBOT ultimately reached a mutual agreement on the particular interpretation at issue, and those interpretations are reflected in various agreements and letter agreements between CBOE and CBOT. CBOE filed these interpretations of Article Fifth(b) with the Commission, reflected in amendments to CBOE Rule 3.16(b) (‘‘Special Provisions Regarding Chicago Board of Trade Exerciser Memberships’’), as proposed rule changes pursuant to Section 19(b)(1) of the Exchange Act.7 The Commission approved each such interpretation. 1. 1992 Agreement In 1993, the Commission approved the CBOE’s proposed interpretation of the meaning of the term ‘‘member of [the CBOT]’’ as used in Article Fifth(b) that was embodied in an agreement dated September 1, 1992 (the ‘‘1992 Agreement’’) and reflected in CBOE Rule 3.16(b).8 The 1992 Agreement addressed, among other things, the effect on the Exercise Right of CBOT’s plans to divide the membership interests of the then-existing 1,402 member-owners of CBOT into parts. That interpretation provided that all such parts, together with the trading rights appurtenant thereto, must be in the possession of an individual in order for that individual to be eligible to 7 15 U.S.C. 78s(b)(1). Securities Exchange Act Release No. 32430 (June 8, 1993), 58 FR 32969 (June 14, 1993) (SR– CBOE–92–42). 8 See E:\FR\FM\22JAN1.SGM 22JAN1

Agencies

[Federal Register Volume 73, Number 14 (Tuesday, January 22, 2008)]
[Notices]
[Pages 3767-3769]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-997]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57152; File No. SR-BSE-2007-55]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Exchange Fees and Charges To Be 
Assessed in Connection With the Implementation of an Electronic 
Registration Process

 January 15, 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 December 21, 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 prepared substantially by the 
Exchange. On January 11, 2008, BSE filed Amendment No. 1 to the 
proposed rule change. BSE has designated this proposal as one 
establishing or changing a member due, fee, or other charge imposed by 
the Exchange 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).
---------------------------------------------------------------------------

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

    The BSE proposes to amend the BSE Fee Schedule and the Boston 
Options Exchange (``BOX'') Fee Schedule in order to adopt certain fees 
to be charged

[[Page 3768]]

to all active members \5\ and to all member and participant 
organizations (collectively, the ``members'') associated with the 
implementation of an electronic registration process through the 
Financial Industry Regulatory Authority's (``FINRA'') Web Central 
Registration Depository (``Web CRD''). The text of the proposed rule 
change is available at https://www.bostonstock.com, the principal 
offices of the Exchange, and the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \5\ Because BSE ceased operations of its BeX equity market on 
September 5, 2007, the only active members that this now applies to 
are those members of BOX.
---------------------------------------------------------------------------

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. 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 adopt fees associated 
with the implementation of an electronic registration process through 
FINRA's Web CRD, which should, in turn, create a more efficient 
registration process by migrating from a manual paper-based Exchange 
procedure for registration to a Web-based registration process that is 
operated by FINRA. The proposed fees are similar to those fees charged 
by other self-regulatory organizations that use FINRA's Web CRD.\6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release Nos. 51641 (May 2, 
2005), 70 FR 24155 (May 6, 2005) (SR-PCX-2005-49); 48066 (June 19, 
2003), 68 FR 38409 (June 27, 2003) (SR-AMEX-2003-49); 45112 
(November 28, 2001), 66 FR 63086 (December 4, 2001) (SR-NYSE-2001-
47); and 53688 (April 20, 2006), 71 FR 24885 (April 27, 2006) (SR-
Phlx-2006-24).
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to adopt the following fees 
that will be imposed upon all members in connection with their required 
participation in Web CRD: (a) A FINRA CRD Processing Fee of $85.00; (b) 
a FINRA Disclosure Processing Fee of $95.00; (c) a FINRA Annual System 
Processing Fee of $30.00; and (d) fingerprinting fees that will vary 
depending on the submission: For a first card submission the fee will 
be $30.25; for a second card submission the fee will be $13.00; for a 
third card submission the fee will be $30.25; for processing 
fingerprint results where the member had prints processed through a 
self-regulatory organization and not FINRA, the fee will be $13.00 
(collectively, the ``FINRA Fees''). The Exchange also proposes to 
adopt: (e) An individual initial registration fee of $60.00; (f) an 
individual transfer fee for $40.00 with a transfer time period of 
thirty (30) days; (g) an individual renewal fee for $50.00; and (h) an 
individual termination fee of $30.00 (collectively, the ``Exchange 
Fees''). FINRA will process the fingerprint cards and will make the 
results available to the Exchange, its members, and member and 
participant organizations via Web CRD.
    Members and participant organizations will be instructed to pay the 
FINRA Fees and the Exchange Fees associated with Web CRD directly to 
FINRA through Web CRD. FINRA will retain the FINRA Fees and remit the 
Exchange Fees it collects to BSE.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\7\ in general, and furthers the 
objectives of section 6(b)(4) of the Act,\8\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its members and issuers and other persons 
using its facilities in connection with their use of Web CRD. The fees 
are imposed upon all members equally. The Exchange believes the 
proposed fees are reasonable in that they are similar to those charged 
by other self-regulatory organizations that use FINRA's Web CRD.\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ See note 6, supra.
---------------------------------------------------------------------------

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 written 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 \10\ and Rule 
19b-4(f)(2) \11\ thereunder, because it establishes or changes a due, 
fee, or other charge imposed on members by the Exchange. Accordingly, 
the proposal is effective 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.\12\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \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 January 11, 2008, the date on which the Exchange 
filed Amendment No. 1.
---------------------------------------------------------------------------

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-2007-55 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-2007-55. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will 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

[[Page 3769]]

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 publicly available. All submissions 
should refer to File Number SR-BSE-2007-55 and should be submitted on 
or before February 12, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-997 Filed 1-18-08; 8:45 am]
BILLING CODE 8011-01-P
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