Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Boston Stock Exchange, Inc. To Amend Certain BOX Rules Related to the PIP To Eliminate the Requirement That There Be at Least Three Market Makers Quoting in a Relevant Options Class in Order for a PIP To Commence, 72536-72538 [E8-28243]

Download as PDF 72536 Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Notices Number SR–BSE–2008–36 on the subject line. SECURITIES AND EXCHANGE COMMISSION Sections A, B, and C below, of the most significant aspects of such statements. Paper Comments [Release No. 34–58999; File No. SR–BSE– 2008–54] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Boston Stock Exchange, Inc. To All submissions should refer to File Amend Certain BOX Rules Related to Number SR–BSE–2008–36. The file the PIP To Eliminate the Requirement number should be included on the subject line if e-mail is used. To help the That There Be at Least Three Market Makers Quoting in a Relevant Options Commission process and review your Class in Order for a PIP To Commence comments more efficiently, please use only one method. The Commission will November 21, 2008. post all comments on the Commission’s Pursuant to Section 19(b)(1) of the Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934 rules/sro.shtml). Copies of the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 submission, all subsequent notice is hereby given that on November 17, 2008, the Boston Stock Exchange, amendments, all written statements Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with with respect to the proposed rule the Securities and Exchange change that are filed with the Commission (‘‘Commission’’) the Commission, and all written proposed rule change as described in communications relating to the Items I and II below, which Items have proposed rule change between the Commission and any person, other than been prepared by the self-regulatory organization. The Commission is those that may be withheld from the publishing this notice to solicit public in accordance with the comments on the proposed rule change provisions of 5 U.S.C. 552, will be from interested persons. available for inspection and copying in the Commission’s Public Reference I. Self-Regulatory Organization’s Statement of the Terms of Substance of Room, 100 F Street, NE., Washington, the Proposed Rule Change DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. The Exchange proposes to amend Copies of such filings also will be certain Rules of the Boston Options available for inspection and copying at Exchange Group, LLC (‘‘BOX’’) related the principal office of the BSE. All to the Price Improvement Period (‘‘PIP’’) comments received will be posted to eliminate the requirement that there without change; the Commission does be at least three market makers quoting not edit personal identifying in a relevant options class in order for information from submissions. You a PIP to commence. The text of the proposed rule change is available from should submit only information that you wish to make available publicly. All the principal office of the Exchange, at the Commission’s Public Reference submissions should refer to File Room and also on the Exchange’s Number SR–BSE–2008–36 and should be submitted on or before December 19, Internet Web site at http://nasdaqtrader. com/Trader.aspx?id=Boston_Stock_ 2008. Exchange. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.6 Florence E. Harmon, Acting Secretary. [FR Doc. E8–28240 Filed 11–26–08; 8:45 am] mstockstill on PROD1PC66 with NOTICES BILLING CODE 8011–01–P 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 self-regulatory organization 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 self-regulatory organization has prepared summaries, set forth in 1 15 6 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 17:16 Nov 26, 2008 2 17 Jkt 217001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00095 Fmt 4703 Sfmt 4703 1. Purpose In order to provide additional opportunities for price improvement, the Exchange proposes to expand the PIP. The PIP permits Participants to provide penny price improvement for Customer Orders.3 Current BOX rules require, among other things, that there are at least three Market Makers quoting in the relevant series before a PIP may commence. The Exchange is now proposing to eliminate this requirement. The Exchange does not believe that orders should be denied the benefits of the PIP simply because there may be less than three Market Makers quoting in a relevant series. The BOX Rules provide for broad participation in a PIP auction. Allowing all types of Participants on BOX, including Market Makers, OFPs and Public Customers to compete within the PIP increases competition to provide price improvement, benefiting the Customer Order. Any concern regarding a PIP starting with a lower number of Market Makers quoting in the relevant series is offset by the broad participation and competition that is present in a PIP auction once commenced. The Exchange believes that this proposed rule change is a reasonable modification designed to provide additional flexibility for Participants to obtain executions on behalf of their customers while continuing to provide a meaningful, competitive auction. In support of its proposal, the Exchange notes that the Commission recently approved a similar proposal of the International Securities Exchange (‘‘ISE’’) to remove an identical requirement within its Price Improvement Mechanism (‘‘PIM’’) rules.4 The ISE PIM now permits price improvement in non-standard increments without the condition that there be a minimum number of market makers quoting in the particular series.5 The PIP and PIM share the same purpose and goal of providing opportunities for customer price improvement. The Exchange believes that the PIP, and in turn the customers that benefit from the PIP, would be disadvantaged if the three Market Maker 3 See Section 18 of Chapter V of the BOX Rules. Securities Exchange Act Release No. 58710 (October 1, 2008), 73 FR 59008 (October 8, 2008) (SR–ISE–2008–63). 5 See ISE Rule 723. 4 See E:\FR\FM\28NON1.SGM 28NON1 Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Notices requirement remained as a condition to start a PIP.6 Because ISE is currently able to offer its customers price improvement in a non-standard increment without a minimum quoter requirement in the PIM, the Exchange believes it is essential for competitive reasons to be able to offer the same opportunities for price improvement on BOX through the PIP. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,7 in general, and Section 6(b)(5) of the Act,8 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to prevent fraudulent and manipulative acts, 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. In particular, the proposed rule change will allow Participants to guarantee executions and provide additional price improvement opportunities to their customers’ orders. The Exchange believes that this proposed rule change is a reasonable modification designed to provide additional flexibility for Participants to obtain executions on behalf of their customers while continuing to provide a meaningful, competitive auction. 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 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 9 15 mstockstill on PROD1PC66 with NOTICES The Exchange has neither solicited nor received comments on the proposed rule change. 6 Both PIP and PIM have certain characteristics in common with each other. Both provide for the opportunity for customer price improvement, both have certain periods where the initial orders are exposed for potential price improvement, both have certain guidelines regarding the types of orders that may be eligible for this price improvement and both have certain defined rules related to the allocation of trades within these price improvement auctions. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 17:16 Nov 26, 2008 Jkt 217001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b–4(f)(6) thereunder.10 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act normally does not become operative for 30 days after the date of filing.11 However, Rule 19b–4(f)(6)(iii) 12 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. The Exchange asserts that waiver of the operative delay is appropriate in order to allow the Exchange to remain competitive with the ISE and to prevent delaying the benefits that the proposed rule change will confer to customers. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission notes that it recently approved a substantially similar rule change for ISE’s PIM, and BSE’s proposal raises no new regulatory issues.13 The Commission also notes that ISE’s proposal was subject to full notice and comment, and the Commission received no comments on that proposal. Accordingly, the Commission designates that the proposed rule change become operative immediately.14 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 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) under the Act requires that a selfregulatory organization submit to the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this notice requirement. 11 17 CFR 240.19b–4(f)(6)(iii). 12 Id. 13 See supra note 4. 14 For the purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 10 17 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 72537 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. 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–2008–54 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–2008–54. 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 the filing also will be available for inspection and copying at the principal office of the self-regulatory organization. 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– 2008–54 and should be submitted on or before December 19, 2008. E:\FR\FM\28NON1.SGM 28NON1 72538 Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Acting Secretary. [FR Doc. E8–28243 Filed 11–26–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58985; File No. SR–ISE– 2008–86] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enable the Listing and Trading of Options on Index-Linked Securities A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change November 20, 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 November 14, 2008, the International Securities Exchange, LLC (‘‘ISE’’ 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 prepared by the Exchange. The Exchange filed the proposed rule change as a ‘‘non-controversial’’ proposed rule change pursuant to section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) 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. mstockstill on PROD1PC66 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE proposes to amend ISE Rule 502, Criteria for Underlying Securities, and 503, Withdrawal of Approval of Underlying Securities, to enable the listing and trading on the Exchange of options on Index-Linked Securities, as defined below. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission’s Public Reference Room, and on the Exchange’s Web site at http://www.iseoptions.com. CFR 200.30–3(a)(12). 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)(6). 17:16 Nov 26, 2008 1. Purpose This proposed rule change is based on recent Chicago Board Options Exchange, Incorporated (‘‘CBOE’’) and NASDAQ OMX PHLX, Inc. (‘‘PHLX’’).5 The purpose of the proposed rule change is to revise ISE Rules 502 and 503 to enable the listing and trading of options on equity index-linked securities (‘‘Equity Index-Linked Securities’’), commodity-linked securities (‘‘Commodity-Linked Securities’’), currency-linked securities (‘‘Currency-Linked Securities’’), fixed income index-linked securities (‘‘Fixed Income Index-Linked Securities’’), futures-linked securities (‘‘FuturesLinked Securities’’) and multifactor index-linked securities (‘‘Multifactor Index-Linked Securities’’) (the six types of index-linked securities are collectively known as ‘‘Index-Linked Securities’’) that are principally traded on a national securities exchange and are ‘‘NMS Stock’’ (as defined in Rule 600 of Regulation NMS under the Act). Index-Linked Securities are designed for investors who desire to participate in a specific market segment by providing exposure to one or more identifiable underlying securities, commodities, currencies, derivative instruments or market indexes of the foregoing (‘‘Underlying Index’’ or ‘‘Underlying Indexes’’). Index-Linked Securities are the non-convertible debt of an issuer that have a term of at least one (1) year but not greater than thirty (30) years. Despite the fact that Index-Linked Securities are linked to an underlying 5 See Exchange Act Release Nos. 58204 (July 22, 2008), 73 FR 43807 (July 28, 2008) (SR–CBOE– 2008–64) and 58571 (September 17, 2008), 73 FR 55188 (September 24, 2008) (SR–PHLX–2008–60). In addition, the Exchange is making minor changes to ISE Rule 502(h) to conform the Exchange’s rules to those of CBOE and PHLX. 15 17 VerDate Aug<31>2005 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 self-regulatory organization 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 self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. Jkt 217001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 index, each trades as a single, exchangelisted security. Accordingly, rules pertaining to the listing and trading of standard equity options will apply to Index-Linked Securities. The Exchange does not propose any changes to rules pertaining to Index Options. Listing Criteria The Exchange will consider listing and trading options on Index-Linked Securities provided the Index-Linked Securities meet the criteria for underlying securities set forth in ISE Rules 502(a) and (b). The Exchange proposes that IndexLinked Securities deemed appropriate for options trading represent ownership of a security that provides for the payment at maturity, as described below: —Equity Index-Linked Securities are securities that provide for the payment at maturity of a cash amount based on the performance of an underlying index or indexes of equity securities (‘‘Equity Reference Asset’’); —Commodity-Linked Securities are securities that provide for the payment at maturity of a cash amount based on the performance of one or more physical commodities or commodity futures, options or other commodity derivatives or Commodity-Based Trust Shares or a basket or index of any of the foregoing (‘‘Commodity Reference Asset’’); —Currency-Linked Securities are securities that provide for the payment at maturity of a cash amount based on the performance of one or more currencies, or options or currency futures or other currency derivatives or Currency Trust Shares 6 or a basket or index of any of the foregoing (‘‘Currency Reference Asset’’); —Fixed Income Index-Linked Securities are securities that provide for the payment at maturity of a cash amount based on the performance of one or more notes, bonds, debentures or evidence of indebtedness that include, but are not limited to, U.S. Department of Treasury securities (‘‘Treasury Securities’’), government sponsored entity securities (‘‘GSE Securities’’), municipal securities, trust preferred securities, 6 See proposed ISE Rule 502(h). The term ‘‘Currency Trust Shares’’ is defined as a security that (a) holds a specified non-U.S. currency deposited with the trust or similar entity; (b) when aggregated in some specified minimum number may be surrendered to the trust by the beneficial owner to receive the specified non-U.S. currency or currencies; and (c) pays the beneficial owner interest and other distributions on deposited nonU.S. currency or currencies, if any, declared and paid by the trust. E:\FR\FM\28NON1.SGM 28NON1

Agencies

[Federal Register Volume 73, Number 230 (Friday, November 28, 2008)]
[Notices]
[Pages 72536-72538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28243]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58999; File No. SR-BSE-2008-54]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Inc. To Amend Certain BOX Rules Related to the PIP To Eliminate the 
Requirement That There Be at Least Three Market Makers Quoting in a 
Relevant Options Class in Order for a PIP To Commence

November 21, 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 November 17, 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 prepared by the self-regulatory 
organization. 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.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend certain Rules of the Boston Options 
Exchange Group, LLC (``BOX'') related to the Price Improvement Period 
(``PIP'') to eliminate the requirement that there be at least three 
market makers quoting in a relevant options class in order for a PIP to 
commence. The text of the proposed rule change is available from the 
principal office of the Exchange, at the Commission's Public Reference 
Room and also on the Exchange's Internet Web site at http://
nasdaqtrader.com/Trader.aspx?id=Boston_Stock_Exchange.

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 self-regulatory organization 
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 self-regulatory organization 
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
    In order to provide additional opportunities for price improvement, 
the Exchange proposes to expand the PIP. The PIP permits Participants 
to provide penny price improvement for Customer Orders.\3\ Current BOX 
rules require, among other things, that there are at least three Market 
Makers quoting in the relevant series before a PIP may commence. The 
Exchange is now proposing to eliminate this requirement.
---------------------------------------------------------------------------

    \3\ See Section 18 of Chapter V of the BOX Rules.
---------------------------------------------------------------------------

    The Exchange does not believe that orders should be denied the 
benefits of the PIP simply because there may be less than three Market 
Makers quoting in a relevant series. The BOX Rules provide for broad 
participation in a PIP auction. Allowing all types of Participants on 
BOX, including Market Makers, OFPs and Public Customers to compete 
within the PIP increases competition to provide price improvement, 
benefiting the Customer Order. Any concern regarding a PIP starting 
with a lower number of Market Makers quoting in the relevant series is 
offset by the broad participation and competition that is present in a 
PIP auction once commenced. The Exchange believes that this proposed 
rule change is a reasonable modification designed to provide additional 
flexibility for Participants to obtain executions on behalf of their 
customers while continuing to provide a meaningful, competitive 
auction.
    In support of its proposal, the Exchange notes that the Commission 
recently approved a similar proposal of the International Securities 
Exchange (``ISE'') to remove an identical requirement within its Price 
Improvement Mechanism (``PIM'') rules.\4\ The ISE PIM now permits price 
improvement in non-standard increments without the condition that there 
be a minimum number of market makers quoting in the particular 
series.\5\ The PIP and PIM share the same purpose and goal of providing 
opportunities for customer price improvement. The Exchange believes 
that the PIP, and in turn the customers that benefit from the PIP, 
would be disadvantaged if the three Market Maker

[[Page 72537]]

requirement remained as a condition to start a PIP.\6\ Because ISE is 
currently able to offer its customers price improvement in a non-
standard increment without a minimum quoter requirement in the PIM, the 
Exchange believes it is essential for competitive reasons to be able to 
offer the same opportunities for price improvement on BOX through the 
PIP.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 58710 (October 1, 
2008), 73 FR 59008 (October 8, 2008) (SR-ISE-2008-63).
    \5\ See ISE Rule 723.
    \6\ Both PIP and PIM have certain characteristics in common with 
each other. Both provide for the opportunity for customer price 
improvement, both have certain periods where the initial orders are 
exposed for potential price improvement, both have certain 
guidelines regarding the types of orders that may be eligible for 
this price improvement and both have certain defined rules related 
to the allocation of trades within these price improvement auctions.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\7\ in general, and Section 
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to prevent fraudulent and manipulative acts, 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. In particular, the proposed rule change will allow 
Participants to guarantee executions and provide additional price 
improvement opportunities to their customers' orders. The Exchange 
believes that this proposed rule change is a reasonable modification 
designed to provide additional flexibility for Participants to obtain 
executions on behalf of their customers while continuing to provide a 
meaningful, competitive auction.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 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 does not: (i) Significantly 
affect the protection of investors or the public interest; (ii) impose 
any significant burden on competition; and (iii) become operative for 
30 days after the date of this filing, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) 
thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
under the Act requires that a self-regulatory organization submit to 
the Commission written notice of its intent to file the proposed 
rule change, along with a brief description and text of the proposed 
rule change, at least five business days prior to the date of filing 
of the proposed rule change, or such shorter time as designated by 
the Commission. The Exchange has satisfied this notice requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act normally does not become operative for 30 days after the date of 
filing.\11\ However, Rule 19b-4(f)(6)(iii) \12\ 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. The 
Exchange asserts that waiver of the operative delay is appropriate in 
order to allow the Exchange to remain competitive with the ISE and to 
prevent delaying the benefits that the proposed rule change will confer 
to customers. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. The Commission notes that it recently approved a 
substantially similar rule change for ISE's PIM, and BSE's proposal 
raises no new regulatory issues.\13\ The Commission also notes that 
ISE's proposal was subject to full notice and comment, and the 
Commission received no comments on that proposal. Accordingly, the 
Commission designates that the proposed rule change become operative 
immediately.\14\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ Id.
    \13\ See supra note 4.
    \14\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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. 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-2008-54 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-2008-54. 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 the filing also will be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-
2008-54 and should be submitted on or before December 19, 2008.


[[Page 72538]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-28243 Filed 11-26-08; 8:45 am]
BILLING CODE 8011-01-P