Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Granting Approval of Proposed Rule Change Relating to BOX Rules Governing Doing Business With the Public, 9012-9013 [E9-4183]

Download as PDF 9012 Federal Register / Vol. 74, No. 38 / Friday, February 27, 2009 / Notices Dated: February 23, 2009. Florence E. Harmon, Deputy Secretary. [FR Doc. E9–4184 Filed 2–26–09; 8:45 am] to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to Charles Boucher, Director/CIO, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312; or send an e-mail to: PRA_Mailbox@sec.gov. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon written request, copies available from: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. rwilkins on PROD1PC63 with NOTICES2 Extension: Form F–10; OMB Control No. 3235–0380; SEC File No. 270–334. 16:39 Feb 26, 2009 Jkt 217001 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management Budget for extension and approval. Form F–10 (17 CFR 239.40) is a registration statement under the Securities Act of 1933 (15 U.S.C. 77a et seq.) that is used by certain Canadian ‘‘substantial issuers’’ (those issuers with at least 36 calendar months of reporting history with a securities commission in Canada and a market value of common stock of at least C$360 million and an aggregate market value of common stock held by non-affiliates of at least C$75 million). The purpose of the information collection is to facilitate cross-border offerings by specified Canadian issuers. We estimate that Form F–10 takes 25 hours per response and is filed by 75 respondents. We further estimate that 25% of the 25 hours per response (6.25 hours) is prepared by the issuer for an annual reporting burden of 469 hours (6.25 hours per response × 78 responses). Written comments are invited on: (a) Whether this proposed collections of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden imposed by the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given VerDate Nov<24>2008 Dated: February 23, 2009. Florence E. Harmon, Deputy Secretary. [FR Doc. E9–4185 Filed 2–26–09; 8:45 am] [Release No. 34–59434; File No. SR–BSE– 2008–56] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Granting Approval of Proposed Rule Change Relating to BOX Rules Governing Doing Business With the Public February 23, 2009. On December 9, 2008, the Boston Stock Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder.2 The proposed rule change was published for comment in the Federal Register on January 13, 2009.3 The Commission received no comments on the proposed rule change. This order approves the proposed rule change. I. Description of the Proposed Rule Change The Exchange proposed to amend Chapter XI of the Boston Options Exchange (‘‘BOX’’) Rules by replacing the term ‘‘Registered Options and Security Futures Principal’’ (‘‘ROSFP’’) with ‘‘Registered Options Principal’’ (‘‘ROP’’). Although ROP was recently changed to ROSFP in the BOX Rules, the Exchange believes that the change from ROP to ROSFP may have created confusion among BOX participants, and that reverting to ROP will alleviate this confusion. Furthermore, the Exchange believes that reverting to ROP will provide consistency with the rules of other options exchanges, most of which 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 59211 (January 7, 2009), 74 FR 1734 (January 13, 2009). 2 17 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 use ROP rather than ROSFP.4 The Exchange notes that the reversion to ROP does not affect the qualifications required to transact options business with the public. The Exchange also proposed amending Chapter XI, Section 13 of the BOX Rules to clarify that an options confirmation need not disclose the exchange or exchanges on which an options transaction is executed. The rule will continue to require that written confirmations contain a description of each transaction in the options contract, the underlying security, the type of option, the option expiration month, exercise price, number of option contracts, premium, commissions, date of transaction and settlement date, and shall indicate whether the transaction is a purchase or sale and whether a principal or agency transaction. The confirmation shall also distinguish by appropriate symbols between Exchange transactions and other transactions in options contracts. This change will maintain consistency with other exchanges which have recently filed similar rule proposals.5 Lastly, the Exchange proposed elimination of the definition of ‘‘closing purchase transaction’’ as defined in Chapter I, Section 1 of the BOX Rules. The term ‘‘closing purchase transaction’’ does not appear in any other provision of the BOX Rules. Therefore, the definition is unnecessary. II. Discussion and Findings After careful review of the proposed rule change, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b) of the Act,6 in general, and Section 6(b)(5) of the Act,7 in particular, in that it is designed to promote just and equitable principles of trade, facilitate transactions in securities, remove 4 See Securities Exchange Act Release No. 58932 (November 12, 2008), 73 FR 69696 (November 19, 2008) (SR–FINRA–2008–032) (changing the term ‘‘Registered Options and Security Futures Principal’’ to ‘‘Registered Options Principal’’). See also Securities Exchange Act Release No. 58129 (July 9, 2008), 73 FR 40895 (SR–ISE–2008–21); Securities Exchange Act Release No. 57738 (April 29, 2008), 73 FR 25805 (May 7, 2008) (SR–Amex– 2007–129); and Securities Exchange Act Release No. 56971 (December 14, 2007), 72 FR 72804 (December 21, 2007) (SR–CBOE–2007–106) (approving elimination of the positions and titles of Senior Registered Options Principal and Compliance Registered Options Principal). 5 See Securities Exchange Act Release No. 58980 (November 19, 2008), 73 FR 72091 (November 26, 2008) (SR–CBOE–2008–61). See also Securities Exchange Act Release No. 58932 (November 12, 2008), 73 FR 69696 (November 19, 2008) (SR– FINRA–2008–032) (approving change clarifying confirmation disclosure requirements). 6 15 U.S.C. 78(f)(b). 7 15 U.S.C. 78(f)(b)(5). E:\FR\FM\27FEN1.SGM 27FEN1 Federal Register / Vol. 74, No. 38 / Friday, February 27, 2009 / Notices impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest.8 The Commission believes that the proposal is consistent with Section 6(b)(5) of the Exchange Act because the proposed rule change will clarify the use of certain terms consistent with their use by other self-regulatory organizations, and also will clarify the Exchange’s options confirmation procedure rules. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change III. Conclusion II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–BSE–2008– 56) be, and hereby is, approved.9 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–4183 Filed 2–26–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59427; File No. SR–CBOE– 2009–008] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Options Regulatory Fee February 20, 2009. rwilkins on PROD1PC63 with NOTICES2 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 February 18, 2009, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by CBOE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 8 In approving this proposal, the Commission has considered the proposed rule change’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 17c(f). 9 15 U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Nov<24>2008 16:39 Feb 26, 2009 Jkt 217001 Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) proposes to amend its Fees Schedule relating to the Options Regulatory Fee. The text of the proposed rule change is available on the Exchange’s Web site (https://www.cboe.org/legal), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. In its filing with the Commission, CBOE 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. CBOE 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 (a) Purpose In October 2008, the Exchange filed a proposed rule change to eliminate Registered Representative Fees and establish a transaction-based ‘‘Options Regulatory Fee’’ (‘‘ORF’’).3 The ORF was to be effective January 1, 2009. In December 2008 and January 2009, the Exchange filed proposed rule changes waiving the ORF for January and February, to allow additional time for the Exchange, the Options Clearing Corporation (‘‘OCC’’) and firms to put in place appropriate procedures to implement the fee.4 The Exchange has reevaluated the current amount of the ORF in light of the waiver of the ORF for the first two 3 See Securities Exchange Act Release No. 58817 (October 20, 2008), 73 FR 63744 (October 27, 2008). The ORF is $.0045 per contract and is assessed to each member for all options transactions executed by the member that are cleared by The Options Clearing Corporation (‘‘OCC’’) in the customer range (i.e., that clear in a customer account at OCC), excluding Options Intermarket Linkage Plan (‘‘Linkage’’) orders. The ORF is imposed upon all such transactions executed by a member, even if such transactions do not take place on the Exchange. The ORF is collected indirectly from members through their clearing firms by OCC on behalf of the Exchange. 4 See Securities Exchange Act Release No. 59182 (December 30, 2008), 74 FR 730 (January 7, 2009), and Securities Exchange Act Release No. 59355 (February 3, 2009), 74 FR 6677 (February 10, 2009). PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 9013 months of 2009 and recent volume levels. The Exchange has determined that it would experience a regulatory revenue shortfall for 2009 if the ORF remained at $.0045 per contract. To avoid a regulatory revenue shortfall for 2009, the Exchange proposes to change the ORF from $.0045 per contract to $.006 per contract. The amount of the ORF will be one-cent in the case of a one-contract trade, i.e., there is a minimum one-cent charge per trade. The Exchange represents that the proposed new ORF rate would generate approximately the same amount of revenue for calendar year 2009 that would have been generated by the current ORF if the ORF had not been waived for two months. As stated in its rule filing establishing the ORF, the Exchange will monitor the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed regulatory costs. The Exchange expects to monitor regulatory costs and revenues at a minimum on an annual basis. If the Exchange determines regulatory revenues exceed regulatory costs, the Exchange would adjust the ORF by submitting a fee change filing to the Commission. The Exchange will notify members of adjustments to the ORF via regulatory circular. The Exchange also proposes to delete references to Registered Representative fees from Section 12 of the Fees Schedule. All of the proposed rule changes will become operative on March 1, 2009. (b) Statutory Basis The Exchange believes the proposed rule change is consistent with Section 6(b) of the Securities Exchange Act of 1934 (‘‘Act’’) 5, in general, and furthers the objectives of Section 6(b)(4) 6 of the Act in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. The Exchange believes the revised ORF is reasonable because it relates to the recovery of the costs of supervising and regulating members and it is expected to generate approximately the same amount of revenue for calendar year 2009 that would have been generated by the current ORF if the ORF had not been waived for the first two months of 2009. 5 15 6 15 E:\FR\FM\27FEN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(4). 27FEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 38 (Friday, February 27, 2009)]
[Notices]
[Pages 9012-9013]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59434; File No. SR-BSE-2008-56]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change Relating to BOX Rules 
Governing Doing Business With the Public

February 23, 2009.
    On December 9, 2008, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 
thereunder.\2\ The proposed rule change was published for comment in 
the Federal Register on January 13, 2009.\3\ The Commission received no 
comments on the proposed rule change. This order approves the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 59211 (January 7, 
2009), 74 FR 1734 (January 13, 2009).
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I. Description of the Proposed Rule Change

    The Exchange proposed to amend Chapter XI of the Boston Options 
Exchange (``BOX'') Rules by replacing the term ``Registered Options and 
Security Futures Principal'' (``ROSFP'') with ``Registered Options 
Principal'' (``ROP''). Although ROP was recently changed to ROSFP in 
the BOX Rules, the Exchange believes that the change from ROP to ROSFP 
may have created confusion among BOX participants, and that reverting 
to ROP will alleviate this confusion. Furthermore, the Exchange 
believes that reverting to ROP will provide consistency with the rules 
of other options exchanges, most of which use ROP rather than ROSFP.\4\ 
The Exchange notes that the reversion to ROP does not affect the 
qualifications required to transact options business with the public.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 58932 (November 12, 
2008), 73 FR 69696 (November 19, 2008) (SR-FINRA-2008-032) (changing 
the term ``Registered Options and Security Futures Principal'' to 
``Registered Options Principal''). See also Securities Exchange Act 
Release No. 58129 (July 9, 2008), 73 FR 40895 (SR-ISE-2008-21); 
Securities Exchange Act Release No. 57738 (April 29, 2008), 73 FR 
25805 (May 7, 2008) (SR-Amex-2007-129); and Securities Exchange Act 
Release No. 56971 (December 14, 2007), 72 FR 72804 (December 21, 
2007) (SR-CBOE-2007-106) (approving elimination of the positions and 
titles of Senior Registered Options Principal and Compliance 
Registered Options Principal).
---------------------------------------------------------------------------

    The Exchange also proposed amending Chapter XI, Section 13 of the 
BOX Rules to clarify that an options confirmation need not disclose the 
exchange or exchanges on which an options transaction is executed. The 
rule will continue to require that written confirmations contain a 
description of each transaction in the options contract, the underlying 
security, the type of option, the option expiration month, exercise 
price, number of option contracts, premium, commissions, date of 
transaction and settlement date, and shall indicate whether the 
transaction is a purchase or sale and whether a principal or agency 
transaction. The confirmation shall also distinguish by appropriate 
symbols between Exchange transactions and other transactions in options 
contracts. This change will maintain consistency with other exchanges 
which have recently filed similar rule proposals.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58980 (November 19, 
2008), 73 FR 72091 (November 26, 2008) (SR-CBOE-2008-61). See also 
Securities Exchange Act Release No. 58932 (November 12, 2008), 73 FR 
69696 (November 19, 2008) (SR-FINRA-2008-032) (approving change 
clarifying confirmation disclosure requirements).
---------------------------------------------------------------------------

    Lastly, the Exchange proposed elimination of the definition of 
``closing purchase transaction'' as defined in Chapter I, Section 1 of 
the BOX Rules. The term ``closing purchase transaction'' does not 
appear in any other provision of the BOX Rules. Therefore, the 
definition is unnecessary.

II. Discussion and Findings

    After careful review of the proposed rule change, the Commission 
finds that the proposed rule change is consistent with the requirements 
of Section 6(b) of the Act,\6\ in general, and Section 6(b)(5) of the 
Act,\7\ in particular, in that it is designed to promote just and 
equitable principles of trade, facilitate transactions in securities, 
remove

[[Page 9013]]

impediments to and perfect the mechanism of a free and open market and 
a national market system, and protect investors and the public 
interest.\8\ The Commission believes that the proposal is consistent 
with Section 6(b)(5) of the Exchange Act because the proposed rule 
change will clarify the use of certain terms consistent with their use 
by other self-regulatory organizations, and also will clarify the 
Exchange's options confirmation procedure rules.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78(f)(b).
    \7\ 15 U.S.C. 78(f)(b)(5).
    \8\ In approving this proposal, the Commission has considered 
the proposed rule change's impact on efficiency, competition, and 
capital formation. See 15 U.S.C. 17c(f).
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III. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-BSE-2008-56) be, and hereby is, 
approved.\9\
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-4183 Filed 2-26-09; 8:45 am]
BILLING CODE 8011-01-P

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