[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16747]


[[Page Unknown]]

[Federal Register: July 12, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34309; File No. SR-BSE-94-08]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by Boston Stock Exchange, Inc. Relating to Additions to Its 
Minor Rule Violation Plan

July 5, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 6, 
1994, 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 change from interested persons.

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

    The BSE seeks to amend its Minor Rule Violation Plan (``Plan'') to 
provide for the imposition of summary fines for violation of certain 
specified Exchange rules and policy by revising the List of Exchange 
Rule Violations and Fines Applicable Thereto Pursuant to Section 4 of 
Chapter XVIII (``List'') for the imposition of fines by adding the 
following rule and policy violations:\1\
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    \1\The BSE also has requested approval, under Rule 19d-1(c)(2), 
17 CFR 240.19-1(c)(2), to amend its Rule 19d-1 minor rule violation 
enforcement and reporting plan to include these policy violations. 
See letter from Karen Aluise, Staff Attorney, to Sandy Sciole, 
Special Counsel, Division, dated April 28, 1994.
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    1. Failure to Promptly Respond to Exchange Blue Sheet Requests or 
File Regularly Scheduled Financial (FOCUS, SIPC) and/or Regulatory 
Reports (Specialist Performance Evaluation Questionnaire, Quarterly 
Option Report);
    2. Improper Use of the ITS Administrative Message Function; and
    3. Failure to Register Floor Employees and Complete Appropriate 
Forms.

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 Exchange's Plan provides that the Exchange may impose a fine, 
not to exceed $2,500, on any member, member organization, allied 
member, approved person, registered or non-registered employee of a 
member or member organization for a minor violation of certain 
specified Exchange rules.\2\
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    \2\The BSE's Plan for enforcing and reporting minor disciplinary 
rule violations was approved by the Commission in Securities 
Exchange Act Release No. 26737 (April 17, 1989), 54 FR 16438-I 
(April 24, 1989) (File No. SR-BSE-88-2).
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    The purpose of the Plan is to provide for a response to a rule 
violation when a sanction is appropriate but when initiation of a full 
disciplinary proceeding is not suitable because such proceeding would 
be more costly and onerous than would be warranted given the minor 
nature of the violation. The Plan provides for an appropriate response 
to minor violations of certain Exchange rules while preserving the due 
process rights of the party accused through specified, required 
procedures.
    In the Exchange's initial filing which set forth the provisions and 
procedures of the Plan, the Exchange indicated that it periodically 
would amend the list of rules subject to the Plan as the Exchange 
deemed appropriate. The Exchange now seeks to add the aforementioned 
rules and policy to the List.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(6) 
of the Act, in that its members and persons associated with its members 
will be appropriately disciplined for violation of rules and policies 
where the Exchange has determined that such violation is minor in 
nature. In accordance with Sections 6(b)(7) and 6(d)(1) of the Act, the 
Plan provides for a fair disciplinary procedure for the imposition of 
sanctions.

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.

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 written 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 publication of this notice in the Federal 
Register or within such other 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 the 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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. 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. Sec. 552, will be available for inspection and copying at 
the Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the BSE. All 
submissions should refer to File No. SR-BSE-94-08 and should be 
submitted by August 2, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-16747 Filed 7-11-94; 8:45 am]
BILLING CODE 8010-01-M