Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing of Proposed Rule Change To Amend the Grandfathered Rules of the Exchange, 46288-46289 [E9-21585]

Download as PDF 46288 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices Number SR–BX–2009–057 and should be submitted on or before September 29, 2009. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others jlentini on DSKJ8SOYB1PROD with NOTICES The Exchange has neither solicited nor received comments on the proposed rule change. SECURITIES AND EXCHANGE COMMISSION IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change [Release No. 34–60591; File No. SR–BX– 2009–048] After careful consideration, the III. Solicitation of Comments Commission finds that the proposed Interested persons are invited to rule change is consistent with the submit written data, views, and requirements of the Act and the rules arguments concerning the foregoing, and regulations thereunder applicable to including whether the proposed rule a national securities exchange.9 In change is consistent with the Act. particular, the Commission finds that Comments may be submitted by any of the proposed rule change is consistent the following methods: with Section 6(b)(4) of the Act,10 which Electronic Comments requires that the rules of an exchange provide for the equitable allocation of • Use the Commission’s Internet reasonable dues, fees and other charges comment form (www.sec.gov/rules/ among its members and other persons sro.shtml); or using its facilities. • Send an e-mail to rulecomments@sec.gov. Please include File The Commission finds good cause for Number SR–BX–2009–057 on the approving this proposal before the 30th subject line. day after the publication of notice thereof in the Federal Register pursuant Paper Comments to 19(b)(2)(B).11 The proposal conforms • Send paper comments in triplicate the Exchange’s fees charged for P Order to Elizabeth M. Murphy, Secretary, and P/A Order executions in Penny Securities and Exchange Commission, Pilot Classes with the fees charged for 100 F Street, NE., Washington, DC other executions to BOX Participants in 20549–1090. such Penny Pilot Classes. An All submissions should refer to File accelerated approval will allow the Number SR–BX–2009–057. This file Exchange to immediately implement a number should be included on the subject line if e-mail is used. To help the lower fee for market participants executing P Orders and P/A Orders on Commission process and review your the Exchange. comments more efficiently, please use only one method. The Commission will V. Conclusion post all comments on the Commission’s It is therefore ordered, pursuant to Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the Section 19(b)(2) of the Act,12 that the submission, all subsequent proposed rule change (SR–BX–2009– amendments, all written statements 057) be, and it hereby is, approved on with respect to the proposed rule an accelerated basis. change that are filed with the For the Commission, by the Division of Commission, and all written Trading and Markets, pursuant to delegated communications relating to the authority.13 proposed rule change between the Commission and any person, other than Florence E. Harmon, Deputy Secretary. those that may be withheld from the [FR Doc. E9–21587 Filed 9–4–09; 8:45 am] public in accordance with the provisions of 5 U.S.C. 552, will be BILLING CODE 8010–01–P 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 Exchange. All 9 In approving this rule change, the Commission comments received will be posted notes that it has considered the proposed rule’s without change; the Commission does impact on efficiency, competition, and capital not edit personal identifying formation. See 15 U.S.C. 78c(f). 10 15 U.S.C. 78f(b)(4). information from submissions. You 11 15 U.S.C. 78s(b)(2)(B). should submit only information that 12 15 U.S.C. 78s(b)(2). you wish to make available publicly. All 13 17 CFR 200.30–3(a)(12). submissions should refer to File VerDate Nov<24>2008 17:32 Sep 04, 2009 Jkt 217001 PO 00000 Frm 00209 Fmt 4703 Sfmt 4703 Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing of Proposed Rule Change To Amend the Grandfathered Rules of the Exchange August 31, 2009. 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 August 17, 2009, NASDAQ OMX BX, Inc. (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 the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Grandfathered Rules of the Exchange. This proposal seeks to incorporate certain provisions of the former Constitution of the Boston Stock Exchange into the Grandfathered Rules. 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:// nasdaqomxbx.cchwallstreet.com/ NASDAQOMXBX/Filings/. 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. 1 15 2 17 E:\FR\FM\08SEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 08SEN1 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices Rules and do not substantially alter the rules in their current format. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose jlentini on DSKJ8SOYB1PROD with NOTICES The NASDAQ OMX Group, Inc. acquired the Boston Stock Exchange in August 2008. In the order approving the acquisition, the Constitution of the Boston Stock Exchange was replaced with the By-Laws of the Exchange as amended.3 Thereafter, the Exchange adopted new, different rules for equities trading, the ‘‘Equity Rules’’ and the Rules, under the new Exchange, were renamed NASDAQ OMX BX [sic].4 In addition, the rules of the Exchange under its former name remained in effect. These rules, as amended subsequent to that acquisition, are entitled the ‘‘Grandfathered Rules.’’ The Grandfathered Rules are operative to the extent that they apply to the Boston Options Exchange Group, LLC (‘‘BOX’’) and to Options Participants on the Exchange, and are to be read in conjunction with the Rules of the BOX. This proposal seeks to incorporate certain provisions of the former Constitution of the Boston Stock Exchange into the Grandfathered Rules. The provisions regard the following: (a) Participation (formerly Membership) rules, to supplement the By-Laws and the Grandfathered Rules to direct the Participants and prospective participants to Section 6(c) of the Securities and Exchange Act of 1934, as cited in the proposed rule text regarding the investigation and acceptance of an applicant; (b) Non-liability of the Exchange provision, to reinforce to Participants the ‘‘non-liability’’ of the Exchange for damages sustained from use of the facilities of the Exchange; (c) Insolvent Participants, to provide guidance for Insolvent Participants to notify the Exchange, of such insolvency and to state that the Exchange will notify the Commission of such insolvency; and (d) Exchange Inquiries to remind Participants that they may be subject to expulsion or suspension for failure to respond to an Exchange Inquiry. The Exchange is seeking retroactive application of this proposal to the date which the new By-Laws were approved by the Commission.5 These rules supplement the existing Grandfathered 3 Securities Exchange Act Release No. 58324 (August 7, 2008), 73 FR 46936 (August 12, 2008) (SR–BSE–2008–02, –23, –25; SR–BSECC–2008–01). 4 Securities Exchange Act Release No. 34–59154 (December 28, 2008), 73 FR 80468 (December 31, 2008) (SR–BSE–2008–48). 5 See supra note 3. VerDate Nov<24>2008 17:32 Sep 04, 2009 Jkt 217001 2. Statutory Basis The Exchange believes that the proposal 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 prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. Specifically, the proposal will provide for the BOX Options Participants to follow the Rules as they existed at the time of the close. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: A. By order approve such proposed rule change, or B. Institute proceedings to determine whether the proposed rule change should be disapproved. 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 Exchange Act. Comments may be submitted by any of the following methods: 6 15 7 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00210 Fmt 4703 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–BX–2009–048 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–BX–2009–048. 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 Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–BX–2009–048 and should be submitted on or before September 29, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–21585 Filed 9–4–09; 8:45 am] BILLING CODE 8010–01–P 8 17 Sfmt 4703 46289 E:\FR\FM\08SEN1.SGM CFR 200.30–3(a)(12). 08SEN1

Agencies

[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Notices]
[Pages 46288-46289]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21585]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60591; File No. SR-BX-2009-048]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing of Proposed Rule Change To Amend the Grandfathered Rules of the 
Exchange

August 31, 2009.
    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 August 17, 2009, NASDAQ OMX BX, Inc. (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 the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Grandfathered Rules of the 
Exchange. This proposal seeks to incorporate certain provisions of the 
former Constitution of the Boston Stock Exchange into the Grandfathered 
Rules. 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://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/.

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.

[[Page 46289]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The NASDAQ OMX Group, Inc. acquired the Boston Stock Exchange in 
August 2008. In the order approving the acquisition, the Constitution 
of the Boston Stock Exchange was replaced with the By-Laws of the 
Exchange as amended.\3\ Thereafter, the Exchange adopted new, different 
rules for equities trading, the ``Equity Rules'' and the Rules, under 
the new Exchange, were renamed NASDAQ OMX BX [sic].\4\ In addition, the 
rules of the Exchange under its former name remained in effect. These 
rules, as amended subsequent to that acquisition, are entitled the 
``Grandfathered Rules.'' The Grandfathered Rules are operative to the 
extent that they apply to the Boston Options Exchange Group, LLC 
(``BOX'') and to Options Participants on the Exchange, and are to be 
read in conjunction with the Rules of the BOX.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 58324 (August 7, 2008), 
73 FR 46936 (August 12, 2008) (SR-BSE-2008-02, -23, -25; SR-BSECC-
2008-01).
    \4\ Securities Exchange Act Release No. 34-59154 (December 28, 
2008), 73 FR 80468 (December 31, 2008) (SR-BSE-2008-48).
---------------------------------------------------------------------------

    This proposal seeks to incorporate certain provisions of the former 
Constitution of the Boston Stock Exchange into the Grandfathered Rules. 
The provisions regard the following: (a) Participation (formerly 
Membership) rules, to supplement the By-Laws and the Grandfathered 
Rules to direct the Participants and prospective participants to 
Section 6(c) of the Securities and Exchange Act of 1934, as cited in 
the proposed rule text regarding the investigation and acceptance of an 
applicant; (b) Non-liability of the Exchange provision, to reinforce to 
Participants the ``non-liability'' of the Exchange for damages 
sustained from use of the facilities of the Exchange; (c) Insolvent 
Participants, to provide guidance for Insolvent Participants to notify 
the Exchange, of such insolvency and to state that the Exchange will 
notify the Commission of such insolvency; and (d) Exchange Inquiries to 
remind Participants that they may be subject to expulsion or suspension 
for failure to respond to an Exchange Inquiry.
    The Exchange is seeking retroactive application of this proposal to 
the date which the new By-Laws were approved by the Commission.\5\ 
These rules supplement the existing Grandfathered Rules and do not 
substantially alter the rules in their current format.
---------------------------------------------------------------------------

    \5\ See supra note 3.
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2. Statutory Basis
    The Exchange believes that the proposal 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 prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, 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. Specifically, the proposal will 
provide for the BOX Options Participants to follow the Rules as they 
existed at the time of the close.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 Exchange 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-BX-2009-048 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-BX-2009-048. 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 Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BX-2009-048 and should be 
submitted on or before September 29, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
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    \8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-21585 Filed 9-4-09; 8:45 am]
BILLING CODE 8010-01-P
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