[Federal Register Volume 67, Number 63 (Tuesday, April 2, 2002)]
[Notices]
[Pages 15641-15642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7873]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45649; File No. SR-BSE-2002-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Inc. To Extend Its Specialist Performance Evaluation Program

March 26, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 
1934\1\ notice is hereby given that on March 20, 2002, the Boston Stock 
Exchange (``BSE'' or ``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. 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).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to extend its Specialist Performance 
Evaluation Program until June 30, 2002. The proposed language is below. 
Added language is in italics. Deleted language is in brackets.

Chapter XV

Specialists
Specialist Performance Evaluation Program
    Sec. 17 (a)--(e) no change.
    (f) This program will expire on [March 31, 2002] June 30, 2002, 
unless further action is taken by the Exchange.
* * * * *

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

[[Page 15642]]

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange seeks to extend its Specialist Performance Evaluation 
Program (``SPEP'') pilot, until June 30, 2002. Under the SPEP pilot 
program, the Exchange regularly evaluates the performance of its 
specialists by using objective measures, such as turnaround time, price 
improvement, depth, and added depth. Generally, any specialist who 
receives a deficient score in one or more measures may be required to 
attend a meeting with the Performance Improvement Action Committee, or 
the Market Performance Committee.
    While the Exchange believes that the SPEP program has been a very 
successful and effective tool for measuring specialist performance, it 
realizes that modifications are necessary because of recent changes in 
the industry, particularly decimalization. Accordingly, the Exchange is 
seeking to extend the pilot period of this program so that evaluation 
and modification of the SPEP program can be undertaken before permanent 
approval is requested.
2. Basis
    The statutory basis for the proposed rule change is section 
6(b)(5)\2\ 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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    \2\ 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 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 foregoing rule change has become effective upon filing pursuant 
to section 19(b)(3)\3\ of the Act and paragraph (f) of Rule 19b-4\4\ 
thereunder because the proposal (1) does not significantly affect the 
protection of investors or the public interest; (2) does not impose any 
significant burden on competition; (3) by its terms, does not become 
operative for 30 days after the date of the filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest; and the Exchange provided the 
Commission with written notice of its intent to file the proposed rule 
change, along with a brief description and text of the proposed rule 
change, at least five business days prior to the date of the filing of 
the proposed rule change,\5\ or such shorter time as designated by the 
Commission.
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    \3\ 15 U.S.C. 78s(b)(3).
    \4\ 17 CFR 240.19b-4(f).
    \5\ BSE submitted this proposed rule change on March 8, 2002. 
The Commission deems the initial filing to meet the notice of intent 
to file requirement.
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    At any time within 60 days of the filing of such 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 furtherance of the purposes of the Act.
    The Commission designates that the proposal become operative on 
March 31, 2002, because it is consistent with the protection of 
investors and the public interest to continue the pilot program 
uninterrupted and permit the Exchange to continue to evaluate the pilot 
program in light of changes in the marketplace.\6\
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    \6\ For purposes only of accelerating the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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-2002-03 and 
should be submitted by April 23, 2002.

    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. 02-7873 Filed 4-1-02; 8:45 am]
BILLING CODE 8010-01-P