[Federal Register Volume 63, Number 27 (Tuesday, February 10, 1998)]
[Notices]
[Pages 6787-6788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3277]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39617; File No. SR-BSE-97-6]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by Boston Stock Exchange, Inc.,
Relating to its BEACON Liability Rule
February 3, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 6788]]
(``Act''),\1\ notice is hereby given that on January 20, 1998, the
Boston Stock Exchange, Inc. (``Exchange'') filed with the Securities
and Exchange Commission the proposed rule as described in Items, I, II
and III below, which items have been prepared by the self-regulatory
organization.\2\ 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\ See letter from Thomas Frain, Staff Attorney, Exchange, to
Kevin Ehrlich, Attorney, Division of Market Regulation, Commission,
dated January 20, 1998 (``Amendment No. 1''). The Exchange
originally submitted the proposal on October 6, 1997. However,
Amendment No. 1, which is a substantive amendment, restricts the
scope of the filing by limiting the Exchange's BEAM-related
disclaimer to instances involving a member or member organization's
reliance on the Boston Exchange Automated Communication Order-
routing Network (``BEACON'') data feed to the Boston Exchange-
Automated Monitoring (``BEAM'') system.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange seeks to modify its rule regarding losses sustained by
members as a result of their use of the Boston Exchange Automated-
Surveillance Monitoring System.
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. 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 bring the Exchange's
BEAM system within the purview of Chapter XXXIII, Section 7 (BEACON
Liability). This section disclaims Exchange liability for losses
related to the BEACON system, from which the BEAM system receives its
data ``feed.'' Whereas losses related to the BEACON system are
determined by the appearance of an order on the Member Firm Interface
Safe-Store file, BEAM related losses are assessed directly to the
affected member or member organization utilizing the BEAM system.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) of the Act \3\ in general and furthers the objectives of
Section 6(b)(5) \4\ of the Act in that the proposed rule change 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 customers,
issuers, brokers, or dealers.
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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 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
The Exchange has asserted that the proposed rule change (i) will
not significantly affect the protection of investors or the public
interest; (ii) will not impose any significant burden on competition;
and (iii) will not become operative for 30 days after the date of this
filing. The proposed rule change was originally submitted to the
Commission on October 6, 1997. However, the submission of substantive
Amendment No. 1 on January 20, 1998 delays the statutorily required
implementation date to February 19, 1998.\5\ For the foregoing reasons,
the rule filing will become operative as a ``non-controversial'' rule
change pursuant to Rule 19b-4(e)(6) under the Act.\6\ The Commission
notes that the Exchange did not submit a pre-filing of this proposal to
the staff five days prior to the formal filing of the proposal.
However, the staff has determined to waive the pre-filing requirement.
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\5\ The Commission notes that any substantive amendment to a
proposed rule change filed under Section (e)(6) of Rule 19b-4 causes
the 30 day delayed implementation period to be restarted from the
date of the filing of the amendment.
\6\ 17 CFR 240.19b-4.
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in the furtherance of the purposes of the Act.
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. 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 Room. Copies of the filing will also
be available for inspection and copying at the principal office of the
Exchange. All submissions should refer to the file number SR-BSE-97-6
and should be submitted by March 3, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-3277 Filed 2-9-98; 8:45 am]
BILLING CODE 8010-01-M