[Federal Register Volume 67, Number 141 (Tuesday, July 23, 2002)]
[Notices]
[Pages 48236-48237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18563]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46220; File No. SR-BSE-2002-08]


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

July 17, 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 June 25, 2002, 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 from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 September 30, 2002. Below is the text of the 
proposed rule change. Proposed new language is italicized. Proposed 
deleted language is in brackets.
* * * * *

Chapter XV

Specialists
Specialist Performance Evaluation Program
    Sec. 17 (a)-(e) no change.
    (f) This program will expire on [June 30, 2002] September 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, 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 proposes to extend its Specialist Performance 
Evaluation Program (``SPEP'') pilot, until September 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 necessitated as a result 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 can be undertaken before permanent approval 
is requested.
2. Statutory Basis
    The statutory basis for the proposed rule change is section 6(b)(5) 
of the Exchange Act,\3\ 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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    \3\ 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

    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 proposed rule change has become effective pursuant to 
section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(6) thereunder \5\ 
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; and (3) does not become operative 
for 30 days from June 25, 2002, the date of filing, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest; and BSE has provided the 
Commission written notice of its intent to file the proposed rule 
change at least five business days prior to the filing date of the 
proposed rule change, or such shorter time the Commission may 
designate. At any time within 60 days of the filing of such proposed 
rule

[[Page 48237]]

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.
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    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
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    The Commission has decided to waive the five day notice and 
designates that the proposal become operative on June 30, 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 
to the marketplace.

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 the File No. SR-BSE-2002-08 and 
should be submitted by August 13, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-18563 Filed 7-22-02; 8:45 am]
BILLING CODE 8010-01-P