Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Exchange Fees and Charges, 32064-32065 [E8-12481]
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32064
Federal Register / Vol. 73, No. 109 / Thursday, June 5, 2008 / Notices
SECURITIES AND EXCHANGE
COMMISSION
the most significant aspects of such
statements.
[Release No. 34–57887; File No. SR–BSE–
2008–31]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Exchange Fees and Charges
May 30, 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 May 28, 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, II, and
III below, which Items have been
substantially prepared by the Exchange.
The Exchange filed the proposed rule
change pursuant to Section 19(b)(3)(A)
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.
yshivers on PROD1PC62 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
BSE proposes to amend the Fee
Schedule of the Boston Options
Exchange facility (‘‘BOX’’) to modify the
fees and credits associated with the
Liquidity Make or Take Pricing
Structure. While changes to the Fee
Schedule pursuant to this proposal are
effective upon filing, the Exchange
designated the changes operative for
June 2, 2008. The text of the proposed
rule change is available at BSE, the
Commission’s Public Reference Room,
and https://www.bse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
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14:51 Jun 04, 2008
Jkt 214001
1. Purpose
The Exchange proposes to amend
Section 7 of the BOX Fee Schedule 5 to
introduce Tier 1 and Tier 2 pricing for
the Liquidity Make or Take Pricing
Structure.6 The proposed rule change
will reduce the fees and credits that the
Exchange charges and applies to
transactions in the iShares Russell
2000 Index Fund (‘‘IWM’’),
Powershares QQQ Trust Series 1
(‘‘QQQQ’’), and the Standard & Poor’s
Depositary Receipts (‘‘SPY’’)
(collectively referred to as ‘‘Tier 2
Classes’’) by fifteen cents ($0.15). Under
the proposal, Tier 2 Class transactions
subject to the Liquidity Make or Take
Pricing Structure will have a thirty cent
($0.30) fee and fifteen cent ($0.15) credit
for Market Makers and thirty cent
($0.30) fee and ten cent ($0.10) credit for
a firm or Public Customer. This will
maintain the current fee/credit
differential applied to each account type
within the Liquidity Make or Take
Pricing Structure, namely, fifteen cents
($0.15) for a Market Maker and twenty
cents ($0.20) for a firm or Public
Customer. Fees and credits for the
proposed Tier 1 Classes will remain at
the levels currently applied to
transactions subject to the Liquidity
Make or Take Pricing structure.7 Tier 1
pricing will continue to apply to all
classes that currently participate in the
Penny Pilot,8 other than the
aforementioned Tier 2 Classes.
Tier 2 Classes are among the most
liquid and most actively traded options
on BOX. Due to the vast liquidity in the
Tier 2 Classes, BOX’s cost to trade these
classes is less than the costs of other
classes traded on BOX. The Exchange
believes that such lower costs should
therefore result in decreased fees for
trading in these Tier 2 Classes.
5 The BOX Fee Schedule can be found on the
BOX Web site at https://www.bostonoptions.com.
6 Capitalized terms not otherwise defined herein
shall have the meanings set forth in the BOX Rules.
7 Pursuant to the BOX Fee Schedule, Market
Makers are currently subject to a forty-five cent
($0.45) charge and receive a thirty cent ($.0.30)
credit. Firms and Public Customers are subject to
a forty-five cent ($0.45) charge and a twenty-five
cent ($0.25) credit.
8 The rules pertaining to the Penny Pilot Program
on BOX can be found in Section 33 of Chapter V
of the BOX Rules. The Exchange has notified
Participants of the classes included within the
Penny Pilot Program via Regulatory Circular. See
Boston Options Exchange Regulation LLC
Regulatory Circular 2008–06.
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
Furthermore, BOX proposes to
distribute a complete list of the classes
included in Tier 1 and Tier 2 pricing to
participants via Regulatory Circular.
The Exchange believes that distributing
a Regulatory Circular containing the
Tier 1 and Tier 2 Classes is the best
method of notifying and informing
Participants of the relevant pricing
structure.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,9
in general, and Section 6(b)(4) of the
Act,10 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.
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is
effective upon filing pursuant to Section
19(b)(3)(A)(ii)11 of the Act and Rule
19b–4(f)(2)12 thereunder, because it
establishes or changes a due, fee, or
other charge applicable only to a
member imposed by the Exchange. At
any time within 60 days of the filing of
the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
11 15 U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 240.19b–4(f)(2).
10 15
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Federal Register / Vol. 73, No. 109 / Thursday, June 5, 2008 / Notices
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–2008–31 on the
subject line.
Paper Comments
yshivers on PROD1PC62 with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57883; File No. SR–CBOE–
2008–53]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of
Proposed Rule Change To Amend the
Exchange’s Rules Pertaining to the
Imposition of Fines for Minor Rule
Violations
May 29, 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 May 19,
All submissions should refer to File
2008, the Chicago Board Options
Number SR-BSE–2008–31. This file
Exchange, Incorporated (‘‘CBOE’’ or
number should be included on the
subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities
and Exchange Commission
Commission process and review your
(‘‘Commission’’) the proposed rule
comments more efficiently, please use
only one method. The Commission will change as described in Items I, II, and
post all comments on the Commission’s III below, which Items have been
substantially prepared by the CBOE.
Internet Web site (https://www.sec.gov/
The Commission is publishing this
rules/sro/shtml). Copies of the
notice to solicit comments on the
submission, all subsequent
proposed rule change from interested
amendments, all written statements
persons.
with respect to the proposed rule
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
Commission and any person, other than
The Exchange proposes to amend
those that may be withheld from the
CBOE Rule 17.50, ‘‘Imposition of Fines
public in accordance with the
for Minor Rule Violations,’’ to revise the
provisions of 5 U.S.C. 552, will be
provisions of CBOE Rule 17.50(g)(1)
available for inspection and copying in
‘‘Violations of Position Limits Rules.’’
the Commission’s Public Reference
The text of the proposed rule change is
Room, on official business days between available on the Exchange’s Web site
the hours of 10 a.m. and 3 p.m. Copies
(https://www.cboe.org/Legal), at the
of such filing will also be available for
CBOE’s principal office, and at the
inspection and copying at the principal
Commission’s Public Reference Room.
office of the Exchange. All comments
received will be posted without change; II. Self-Regulatory Organization’s
Statement of the Purpose of, and
the Commission does not edit personal
Statutory Basis for, the Proposed Rule
identifying information from
Change
submissions. You should submit only
information that you wish to make
In its filing with the Commission, the
available publicly. All submissions
Exchange included statements
should refer to File No. SR-BSE–2008–
concerning the purpose of, and basis for,
31 and should be submitted on or before the proposed rule change and discussed
June 26, 2008.
any comments it received on the
proposed rule change. The text of these
For the Commission, by the Division of
statements may be examined at the
Trading and Markets, pursuant to delegated
authority.13
places specified in Item IV below. The
Exchange has prepared summaries, set
Florence E. Harmon,
forth in Sections A, B, and C below, of
Acting Secretary.
the most significant aspects of such
[FR Doc. E8–12481 Filed 6–4–08; 8:45 am]
statements.
BILLING CODE 8010–01–P
1 15
13 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
14:51 Jun 04, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00116
Fmt 4703
Sfmt 4703
32065
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to increase
and strengthen the sanctions imposed
pursuant to its Minor Rule Violation
Plan (‘‘MRVP’’) in connection with any
member or customer who exceeds the
Exchange’s position limit in accordance
with CBOE Rule 4.11. The Exchange
believes that increasing the fine levels
specified; consolidating individual
members, member organizations, and
customers into one category; and
lengthening the surveillance period
from a 12-month period to a rolling 24month period will serve as an effective
deterrent to such violative conduct.
In addition, the Exchange, as a
member of the Intermarket Surveillance
Group (‘‘ISG’’), as well as certain other
self-regulatory organizations (‘‘SROs’’)
on October 29, 2007 executed and filed
with the Commission a final version of
an Agreement pursuant to Section 17(d)
of the Act (the ‘‘17d–2 Agreement’’).3
The members of the ISG intend to enter
into an amendment to the 17d–2
Agreement in the near future concerning
the surveillance and sanctions of
position limit violations. As such, the
SROs have agreed that their respective
rules concerning position limits
regarding options contracts are common
rules. As a result, the proposal to amend
the CBOE’s MRVP will further result in
consistency in sanctions among the
SROs that are signatories to the 17d–2
Agreement and the forthcoming
amendment concerning position limit
violations.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,5 in particular, in that it is
designed to promote just and equitable
principles of trade, facilitate
transactions in securities, 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. Specifically, the
Exchange believes that the proposed
rule change will strengthen its ability to
carry out its oversight responsibilities as
3 See letter to Richard Holley, Senior Special
Counsel, Division of Trading and Markets,
Commission, from Nyieri Nazarian, Assistant
General Counsel, American Stock Exchange LLC,
dated October 29, 2007.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 73, Number 109 (Thursday, June 5, 2008)]
[Notices]
[Pages 32064-32065]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12481]
[[Page 32064]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57887; File No. SR-BSE-2008-31]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Exchange Fees and Charges
May 30, 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 May 28, 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, II,
and III below, which Items have been substantially prepared by the
Exchange. The Exchange filed the proposed rule change pursuant to
Section 19(b)(3)(A) 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).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
BSE proposes to amend the Fee Schedule of the Boston Options
Exchange facility (``BOX'') to modify the fees and credits associated
with the Liquidity Make or Take Pricing Structure. While changes to the
Fee Schedule pursuant to this proposal are effective upon filing, the
Exchange designated the changes operative for June 2, 2008. The text of
the proposed rule change is available at BSE, the Commission's Public
Reference Room, and https://www.bse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Section 7 of the BOX Fee Schedule
\5\ to introduce Tier 1 and Tier 2 pricing for the Liquidity Make or
Take Pricing Structure.\6\ The proposed rule change will reduce the
fees and credits that the Exchange charges and applies to transactions
in the iShares Russell 2000[reg] Index Fund (``IWM''), Powershares[reg]
QQQ Trust Series 1 (``QQQQ''), and the Standard & Poor's Depositary
Receipts[reg] (``SPY'') (collectively referred to as ``Tier 2
Classes'') by fifteen cents ($0.15). Under the proposal, Tier 2 Class
transactions subject to the Liquidity Make or Take Pricing Structure
will have a thirty cent ($0.30) fee and fifteen cent ($0.15) credit for
Market Makers and thirty cent ($0.30) fee and ten cent ($0.10) credit
for a firm or Public Customer. This will maintain the current fee/
credit differential applied to each account type within the Liquidity
Make or Take Pricing Structure, namely, fifteen cents ($0.15) for a
Market Maker and twenty cents ($0.20) for a firm or Public Customer.
Fees and credits for the proposed Tier 1 Classes will remain at the
levels currently applied to transactions subject to the Liquidity Make
or Take Pricing structure.\7\ Tier 1 pricing will continue to apply to
all classes that currently participate in the Penny Pilot,\8\ other
than the aforementioned Tier 2 Classes.
---------------------------------------------------------------------------
\5\ The BOX Fee Schedule can be found on the BOX Web site at
https://www.bostonoptions.com.
\6\ Capitalized terms not otherwise defined herein shall have
the meanings set forth in the BOX Rules.
\7\ Pursuant to the BOX Fee Schedule, Market Makers are
currently subject to a forty-five cent ($0.45) charge and receive a
thirty cent ($.0.30) credit. Firms and Public Customers are subject
to a forty-five cent ($0.45) charge and a twenty-five cent ($0.25)
credit.
\8\ The rules pertaining to the Penny Pilot Program on BOX can
be found in Section 33 of Chapter V of the BOX Rules. The Exchange
has notified Participants of the classes included within the Penny
Pilot Program via Regulatory Circular. See Boston Options Exchange
Regulation LLC Regulatory Circular 2008-06.
---------------------------------------------------------------------------
Tier 2 Classes are among the most liquid and most actively traded
options on BOX. Due to the vast liquidity in the Tier 2 Classes, BOX's
cost to trade these classes is less than the costs of other classes
traded on BOX. The Exchange believes that such lower costs should
therefore result in decreased fees for trading in these Tier 2 Classes.
Furthermore, BOX proposes to distribute a complete list of the
classes included in Tier 1 and Tier 2 pricing to participants via
Regulatory Circular. The Exchange believes that distributing a
Regulatory Circular containing the Tier 1 and Tier 2 Classes is the
best method of notifying and informing Participants of the relevant
pricing structure.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\9\ in general, and Section
6(b)(4) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is effective upon filing
pursuant to Section 19(b)(3)(A)(ii)\11\ of the Act and Rule 19b-
4(f)(2)\12\ thereunder, because it establishes or changes a due, fee,
or other charge applicable only to a member imposed by the Exchange. 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 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.
[[Page 32065]]
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-2008-31 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BSE-2008-31. 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, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing will also 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 No. SR-BSE-2008-31 and should be submitted on or before June 26,
2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Acting Secretary.
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-12481 Filed 6-4-08; 8:45 am]
BILLING CODE 8010-01-P
