[Federal Register Volume 62, Number 102 (Wednesday, May 28, 1997)]
[Notices]
[Pages 28913-28914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13878]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38656; File No. SR-BSE-97-01]


Self-Regulatory Organizations; Boston Stock Exchange; Notice of 
Filing of Proposed Rule Change Amending the Minor Rule Violation Plan

May 20, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 13, 1997, the Boston 
Stock (``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 BSE. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to amend its Minor Rule Violation Plan to add or 
increase summary fine provisions for carrying weapons, fighting on the 
Exchange premises, and failure to comply with Floor Official 
rulings.\2\
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    \2\ The text of the proposed rule change is attached as Exhibit 
2 to File No. SR-BSE-97-01, and is available for review at the 
principal office of BSE and in the Public Reference Room of the 
Commission.
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, BSE 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. BSE has prepared summaries, set forth in sections A, B, 
and C below, of the most significant aspects of such statements.

[[Page 28914]]

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

    The purpose of the proposed rule change is to amend various 
provisions of the Minor Rule Violation Plan. The first change is to 
increase the summary fine for possession of a firearm or other weapon 
on the Exchange premises from $2500 for any offense to $5000 for any 
offense. In initially adopting this fine provision, the Market 
Performance Committee sought to attach the highest fine available as a 
deterrent in an effort to ensure the safety of members, Exchange staff, 
and guests.
    The Exchange seeks to add a summary fine provision for unauthorized 
physical contact with the intent to cause harm or intimidate another on 
the Exchange premises, with summary fines of $500 for the first 
offense, $1000 for the second offense, and $2500 for subsequent 
offenses. The corresponding rule provision is Article XIV, Section 5 of 
the Exchange Constitution. The intent of the Market Performance 
Committee in adopting such a provision is to prevent member disputes 
from escalating to a physical confrontation.
    The Exchange also seeks to add a summary fine provision for failure 
to comply with an appealed Floor Official ruling that stands.\3\ The 
intent of the Market Performance Committee in adopting this provision 
is to ensure that rule interpretations and execution quality issues on 
which Floor Officials are asked to make rulings are addressed in a 
timely fashion for the benefit of the customer.
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    \3\ In conjunction with this filing the Exchange plans to file 
File No. SR-BSE-97-02, which will seek to amend the corresponding 
rule provision relating to Floor Officials.
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    Finally, the Exchange seeks to amend the rule provision regarding 
appeals to summary fines to require filing with the Office of the 
General Counsel, rather than with the Surveillance Department, in an 
effort to provide a more efficient coordination of the appeal process.
    In regard to these proposed changes, the Market Performance 
Committee stressed its belief that the violation of any of these fine 
provisions may in and of itself warrant a full disciplinary hearing, as 
they deal with the safety of others and the protection of customers.
    The Exchange believes that the proposal is consistent with Section 
6(b)(5) of the Act,\4\ in that it is designed to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in regulating, clearing, settling, processing 
information with respect to, and 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; and is not designed to 
permit unfair discrimination between customer, issuers, brokers, or 
dealers.
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    \4\ 15 U.S.C. Sec. 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 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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    Within thirty-five 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 ninety 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 BSE 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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street N.W., Washington, D.C. 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 in 
the Commission's Public Reference Section, 450 Fifth Street N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of BSE. All 
submissions should refer to File No. SR-BSE-97-01 and should be 
submitted by June 18, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-13878 Filed 5-27-97; 8:45 am]
BILLING CODE 8010-01-M