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]
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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 (https://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 https://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 (https://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 (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 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
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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
https://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 https://
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.
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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\
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\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).
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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 (https://
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 (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 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\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-28243 Filed 11-26-08; 8:45 am]
BILLING CODE 8011-01-P
