[Federal Register Volume 67, Number 52 (Monday, March 18, 2002)]
[Notices]
[Pages 12067-12068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6454]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45537; File No. SR-BSE-2002-02]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 by the Boston Stock Exchange, Inc. to Delete 
References to Fractional Pricing From BSE Rules

March 12, 2002.
    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 February 15, 2002, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. On March 1, 2002, the BSE amended the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See February 28, 2002 letter from John A. Boese, Assistant 
Vice President, Legal and Regulatory, BSE to Alton Harvey, Chief, 
Office of Market Watch, Division of Market Regulation, SEC 
(``Amendment No. 1''). In Amendment No. 1, the BSE asked that the 
proposed rule change be considered pursuant to Section 19(b)(2) of 
the Act. 15 U.S.C. 78s(b)(2).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to amend its Rules to delete all references 
to fractional pricing increments in accordance with the decimals 
conversion in the equity marketplace. The text of the proposed rule 
change is available at the BSE and at the Commission.

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 Exchange 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend the following 
Rules to eliminate all references to fractional pricing increments in 
relation to equity securities: Chapter II, Section 41; Chapter XXIV, 
Section 5, Interpretations and Policies, Paragraph .10; Chapter XXIV-B, 
Section 5, Interpretations and Policies, Paragraph .01(e), and 
Paragraph .05; and Chapter XXXI, Section 3.
2. Statutory Basis
    The BSE believes that the proposed rule change is consistent with 
section 6(b)(5) of the Act,\4\ in that it is designed to foster 
cooperation and coordination with persons engaged in regulating 
securities transactions, 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.
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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 BSE consents, the Commission will:
    A. By order approve such proposed rule change, or

[[Page 12068]]

    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 in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
BSE. All submissions should refer to file number SR-BSE-2002-02 and 
should be submitted by April 8, 2002.

    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. 02-6454 Filed 3-15-02; 8:45 am]
BILLING CODE 8010-01-P