[Federal Register Volume 65, Number 219 (Monday, November 13, 2000)]
[Notices]
[Pages 67783-67784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28944]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43506; File No. SR-BSE-00-12]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Boston Stock Exchange, Inc. Relating to the Time Period 
for Filing Claims Against Specialists

November 1, 2000.
    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 September 21, 2000, the Boston Stock Exchange, Inc. (``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 Exchange. On October 3, 2000, the 
Exchange filed Amendment No. 1 to the proposed rule change.\3\ 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. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange made certain technical 
changes relating, inter alia, to the format of the filing, the date 
of effectiveness of the proposed rule change, and the authorization 
procedures of the Exchange. See Amendment No. 1, filed October 3, 
2000.
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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 Rule regarding claims against 
specialists to bring the time period for filing claims into parity with 
T+3 settlement. Below is the text of the proposed rule change. Proposed 
new language is italicized and proposed deletions are in [brackets].
* * * * *

Chapter XV; Claims and Reports Against Specialists

    Sec. 14. All claims and reports against specialists must be made in 
a timely fashion as indicated below:
    (a) All claims which involve erroneous comparisons must be made 
within [5] 3 business days of the original trade date.
    (b) All claims relative to the omission of a report which was 
properly due must be made within [5] 3 business days of the date the 
order should have been executed.
    (c) All claims relative to the lack of comparison of a reported 
transaction must be made within 3 business days of the original trade 
date.
* * * * *

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 Exchange 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 proposes to amend Chapter XV, Section 14, Claims and 
Reports against Specialists, to bring the rule into parity with T+3 
settlement. Currently, the rule has a five-day period within which 
claims can be brought against a specialist. At the time the rule was 
originally drafted, the settlement period for trades was five days, and 
the period within which claims could be filed corresponded to this 
period. With the reduction of the trade settlement period to three 
days, the Exchange is seeking an equivalent three-day time period for 
the filing of claims against specialists.
2. Statutory Basis
    The statutory basis for the proposed rule change is 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 securities

[[Page 67784]]

transactions, to remove impediments to perfect the mechanism of a free 
and open market and a national market system and, in general, to 
protect investors and the public interest.
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    \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

    No written comments were either solicited or received.

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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 
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 at the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-BSE-00-12 and 
should be submitted by December 4, 2000.

    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. 00-28944 Filed 11-9-00; 8:45 am]
BILLING CODE 8010-01-M