[Federal Register Volume 67, Number 83 (Tuesday, April 30, 2002)]
[Notices]
[Page 21304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10539]



[[Page 21304]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45799; File No. SR-BSE-2001-09]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Boston Stock Exchange, Inc. Relating to Clearly Erroneous 
Transactions in Nasdaq Securities

April 22, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ notice is hereby given that on December 26, 2001, the 
Boston Stock Exchange (``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 establish a rule governing the resolution 
of clearly erroneous transactions in The Nasdaq Stock Market, Inc. 
(``Nasdaq'') securities. The text of the proposal is below. All 
language is new.

Chapter XXXV  Clearly Erroneous Transactions

    Sec. 30. For the purposes of this section, the terms of a 
transaction are clearly erroneous when there is an obvious error in any 
term, such as price, number of shares (or other unit of trading), or 
identification of the security.
    Officers of the Nasdaq Stock Market (``Nasdaq'') shall have the 
authority to review any transaction arising from the use of a Nasdaq 
system, including, but not limited to, SuperSoes, SelectNet, or 
SuperMontage. Exchange specialists authorized to trade Nasdaq 
securities are obligated to cooperate with officers of Nasdaq in their 
review of clearly erroneous transactions, and to abide by the 
procedures set forth in Nasdaq Rule 11890 (b) and (c).

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to add a section to Chapter XXXV of its 
rules, which pertains to the trading of Nasdaq securities on the 
Exchange. Proposed Section 30 would govern situations in which there is 
an obvious error in any part of a Nasdaq security transaction. In large 
part, the proposed Section 30 conforms to Nasdaq Rule 11890, Clearly 
Erroneous Transactions, and obliges Exchange specialists to cooperate 
with officers of Nasdaq in their review of clearly erroneous 
transactions occurring on a Nasdaq system.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(5) 
of the Act \2\ 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 are 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

    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 Exchange 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-2001-09 and 
should be submitted by May 21, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-10539 Filed 4-29-02; 8:45 am]
BILLING CODE 8010-01-P