[Federal Register Volume 66, Number 8 (Thursday, January 11, 2001)]
[Notices]
[Page 2462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-790]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43798; File No. SR-BSE-00-12]


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

January 3, 2001.

I. Introduction

    On September 21, 2000, the Boston Stock Exchange, Inc. (``BSE''), 
filed with the Securities and Exchange Commission (``Commission'') a 
proposed rule change pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder.\2\ On 
October 3, 2000, the BSE filed Amendment No. 1 to the proposed rule 
change.\3\ Notice of the proposed rule change, as amended, was 
published for comment in the Federal Register on November 1, 2000.\4\ 
No comments were received on the proposal. This order approves the 
proposed rule change.
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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.
    \4\ See Securities Exchange Act Release No. 43506 (November 1, 
2000), 65 FR 67783 (November 13, 2000).
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II. Description of the Proposed Rule Change

    The BSE proposes to amend Chapter XV, Section 14, of its rules, 
titled ``Claims and Reports Against Specialists''. The amendment 
shortens the permitted time period for: filing claims against 
specialists relating to erroneous comparisons and the omission of a 
report that was properly made, to three business days. The amendment 
will bring the time frames in the rule into parity with the settlement 
period required by Rule 15c6-1 under the Act.\5\
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    \5\ 17 CFR 240.15c6-1.
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III. Discussion

    After careful review, 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.\6\ 
In particular, the Commission believes that the proposal is consistent 
with section 6(b)(5) of the Act,\7\ which requires, among other things, 
that the rules of an exchange be designed to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities. The Commission believes that shortening the time frame 
within which a claim relating to an erroneous comparison must be made 
so that it is consistent with the settlement time frame mandated by 
Rule 15c6-1 under the Act should promote timely settlement of 
securities transactions.
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    \6\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78(c)(f).
    \7\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    For the foregoing reasons, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act, and the 
rules and regulations thereunder.
    It Is Therefore Ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-BSE-00-12), as 
amended, is approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    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. 01-790 Filed 1-10-01; 8:45 am]
BILLING CODE 8010-01-M