[Federal Register Volume 73, Number 168 (Thursday, August 28, 2008)]
[Notices]
[Pages 50845-50846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19945]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58408; File No. SR-BSE-2008-42]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Boston Stock Exchange, Inc. Relating to the Appointment
of Market Makers on the Boston Options Exchange Facility
August 22, 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 August 19, 2008, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule from interested persons.
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\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 section 5 (Obligations of Market
Makers) of Chapter VI of the Rules of the Boston Options Exchange
Group, LLC (``BOX'').
[[Page 50846]]
The text of the proposed rule change is available on the Exchange's
Internet Web site at http://www.bostonstock.com, from the principal
office of the Exchange and from the Commission.
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
The purpose of the proposed rule change is to remove certain
language from section 5(a)(viii) of Chapter VI of the BOX Rules to
eliminate any potential for confusion between this and section 4(f) of
Chapter VI of the BOX Rules.
Currently, section 4(f) of Chapter VI states that ``Market Makers
may withdraw from trading an options class that is within their
appointment by providing the BOX with three business days' written
notice of such withdrawal.'' However, Section 5(a)(viii) states that
``[o]rdinarily, Market Makers are expected to * * * [m]aintain active
markets in all classes in which the Market Maker is appointed for a
period of at least six months.'' To address this potential ambiguity,
the Exchange seeks to remove the language ``for a period of at least
six months'' from section 5(a)(viii). As a result, a Market Maker
seeking to withdraw from a particular appointment will be required to
provide BOX with at least three business days written notice of such
withdrawal, as stated in section 4(f), regardless of how long the
Market Maker has held such appointment.
In addition, the proposed rule change will result in certain
changes to the formatting and text of Supplementary Material to Chapter
VI, Section 5(c)(ii) of the BOX Rules. The rule change is non-
substantive, and it will result in a closer universal format throughout
the BOX Rules.
2. Basis
The Exchange believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\3\ in general, and section
6(b)(5) of the Act,\4\ 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. The proposed rule change will create
greater clarity within the BOX Rules concerning Market Maker
appointments in specific options classes and requests to withdraw from
such appointments.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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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
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 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 [email protected]. Please include
File Number SR-BSE-2008-42 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-2008-42. 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-
2008-42 and should be submitted on or before September 18, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19945 Filed 8-27-08; 8:45 am]
BILLING CODE 8010-01-P