[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Notices]
[Pages 70170-70172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33557]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 40785; File No. SR-BSE-98-10]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the Boston 
Stock Exchange, Inc. Relating to Its Trading Floor Post and 
Telecommunications Room Policies

December 11, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 20, 1998, 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 and II and below, which items have been 
prepared by the BSE. The Commission is publishing this notice

[[Page 70171]]

and order to solicit comments on the proposed rule change from 
interested persons and to approve the proposal on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange seeks to adopt written policies and procedures to 
address certain issues related to the Exchange's scheduled move to its 
new trading floor (``Floor'') \2\ to control access to secure areas and 
to give jurisdiction over posts to the Floor Facilities Committee 
(``Committee'').
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    \2\ The Exchange is scheduled to move to its new Floor on 
January 4, 1998.
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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, the 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 V below. The BSE 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 amend the Exchange's 
Floor policies with respect to post assignment and telecommunications 
room (``Comm Room'') access in anticipation of the Exchange's scheduled 
move. These changes are generally intended to address administrative 
issues regarding space needs for members and equipment, as well as 
security issues.
    The proposed rule gives the Committee jurisdiction over the 
assignment and appearance of posts, and further provides that (1) any 
post relocation or alteration of any post requires the prior consent of 
the Committee; (2) the Committee may relocate a member firm to another 
area of the Floor to accommodate the space needs of the Exchange; (3) 
the Committee will determine which posts will be vacated when a firm 
seeks to relinquish a portion of its existing posts; (4) a member firm 
is prohibited from utilizing an unassigned post for any purpose without 
the prior approval of the Exchange; (5) any unauthorized use of a 
vacant post(s) will result in the immediate removal of all equipment 
and materials at the expense of the member; (6) the storage of all 
member firm tickets, reports and other materials must be within the 
cabinets provided by the Exchange, at the Exchange's warehouse, or in 
such other area as designated by the Exchange; (7) the storage of 
materials in an unauthorized area of the Floor will result in the 
immediate removal of that material to the warehouse, with all costs 
paid by the member firm; (8) no member firm shall place or install any 
personal equipment (i.e., computers, file cabinets, chairs, bulletin 
boards, tables, shelves, desks) without the prior consent of the 
Exchange; and (9) any unauthorized equipment will be immediately 
removed at the expense of the member firm.
    In addition, the proposed rule change seeks to define and limit 
access to the Comm Room and the Floor for security reasons. It requires 
that (1) member firms must obtain a permit number from the Exchange 
prior to any installation or servicing of hardware or 
telecommunications equipment; (2) any service call made by a member 
firm for repairs to equipment or lines must be reported to the 
Exchange, and no vendor will be permitted to access the Comm Room or 
the Floor without prior notification to the Exchange and accompaniment 
by an authorized Exchange staff member or floor member; and (3) any 
equipment removal from any Exchange location must be accompanied by a 
property removal pass issued by an authorized Exchange staff member.
2. Statutory Basis
    The Exchange believes the filing is consistent with and furthers 
the objectives of Section 6(b)(5) of the Act \3\ and the rules and 
regulations thereunder applicable to a national securities exchange, in 
that it is designed to facilitate securities transactions and to remove 
impediments to and perfect the mechanism of a free and open market; 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)(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.

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

    The Exchange did not solicit or receive comments with respect to 
the proposed rule change.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange and, in 
particular, the requirements of Section 6 of the Act \4\ and the rules 
and regulations thereunder. Section 6(b)(5) \5\ of the Act states that 
the rules of an exchange must be designed to foster cooperation and 
coordination with persons engaged regulating, clearing, settling, 
processing information with respect to, and facilitating securities 
transactions. These rules also must help to remove impediments to and 
perfect the mechanism of a free and open market. The Commission 
believes the proposed Post and Comm Room Rules are consistent with this 
provision of the Act in that they will facilitate the Exchange's move 
to its new Floor and minimize disruptions in trading that may result 
from such move. Specifically, the Commission believes that the proposed 
Post Rules will enable the Exchange to function in a more orderly 
fashion by providing the Committee with the authority to assign and 
relocate members to post locations on the trading floor and by 
requiring members to obtain the Exchange's prior consent prior to 
placing equipment at post. The Commission also believes that the 
proposed Comm Room Rules, which limit access to the Comm Room and the 
Floor and require a permit from the Exchange prior to the installations 
or removal of any telecommunications equipment, will adequately provide 
security to the Exchange's Floor and Comm Room and permit the Exchange 
to prepare for any disruptions that may occur during installation or 
removal of equipment.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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IV. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Pursuant to Section 19(b)(2) of the Act,\6\ the Commission finds 
good cause for approving the proposed rule change prior to the 30th day 
after the date of publication of notice of filing thereof in the 
Federal Register because the

[[Page 70172]]

Commission believes that accelerated approval will enable the Exchange 
to move to its new Floor with minimal disruptions in trading.\7\
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    \6\ 15 U.S.C. 78s(b)(2).
    \7\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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V. 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 submissions, 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 at the 
Commission's Public Reference Room in Washington, D.C. Copies of such 
filing will also be available for inspection and copying at the 
principal office at the above-mentioned self-regulatory organization. 
All submissions should refer to File No. BSE-98-10 and should be 
submitted by January 8, 1999.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-BSE-98-10), hereby is 
approved on an accelerated basis.

    \8\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-33557 Filed 12-17-98; 8:45 am]
BILLING CODE 8010-01-M