[Federal Register Volume 69, Number 189 (Thursday, September 30, 2004)]
[Notices]
[Pages 58561-58562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21884]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50436; File No. SR-BSE-2004-39]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto Relating to the Exchange's Transaction Fees 
Schedule


    September 23, 2004.
    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 August 31, 2004, the Boston Stock Exchange (``BSE'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. On September 22, 2004, the Exchange 
filed Amendment No. 1 to 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 letter from John Boese, Vice President and Chief 
Regulatory Officer, BSE to Nancy Sanow, Assistant Director, Division 
of Market Regulation (``Division''), Commission, dated September 15, 
2004 (``Amendment No. 1''), in which the BSE made a minor revision 
of the proposed rule change.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE proposes to amend its Transaction Fees schedule with 
respect to its new Instant Liquidity Access (``ILA'') service.\4\ The 
text of the proposed rule change is available at the BSE and at the 
Commission.
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    \4\ See Securities Exchange Act Release No. 34-48596 (October 7, 
2003), 68 FR 59435 (October 15, 2003) (SR-BSE-2003-08).
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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 BSE 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 BSE 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 \5\
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    \5\ The BSE requested that the staff of the Division make minor 
modifications to language in the purpose and statutory basis 
sections. Telephone discussion between Kathy Marshall, Vice 
President of Finance, BSE, and Mia Zur, Attorney, and Natasha Cowen, 
Attorney, Division, Commission (September 14, 2004).
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1. Purpose
    The BSE proposes to amend its Transaction Fees schedule to 
establish a transaction charge for its new ILA product. The Exchange 
would apply these fees effective September 1, 2004, as this is when the 
product was fully implemented.
    Under the proposed fees, firms that access liquidity on the BSE 
through ILA will be charged $.002 per share when an order removes 
liquidity (order immediately executes against displayed liquidity on 
the BSE) and will be credited $.001 per share when an order provides 
liquidity (order is trading away from the market, is placed on the BSE 
limit order book and is ultimately executed).\6\ A firm can receive 
total credits up to the amount of total fees charged to the firm for 
ILA activity on a monthly basis. Therefore, no firm will be credited in 
an amount greater than the amount of fees it was charged for a given 
month.
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    \6\ Order trading away from the market and submitted through ILA 
without being designated as ILA orders are placed on the BSE limit 
order book and receive the credit. Telephone discussion between 
Kathy Marshall, Vice President of Finance, BSE, and Ira Brandriss, 
Assistant Director, and Natasha Cowen, Attorney, Division, 
Commission (September 23, 2004).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act,\8\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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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 proposed rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of 
Rule 19b-4 thereunder,\10\ because it establishes or changes a due, 
fee, or other charge imposed by the BSE. At any time within 60 days of 
the filing of the 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 pruposes of 
the Act.\11\
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    \9\ 15 U.S.C. 78f(b)(3)(a)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
    \11\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the proposal to have been filed on 
September 22, 2004, the date the BSE filed Amendment No. 1.

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[[Page 58562]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-BSE-2004-39 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-BSE-2004-39. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 the 
filing also will be available for inspection and copying at the 
principal offices of the BSE. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-BSE-2004-39 and should be submitted on or before October 
21, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-21884 Filed 9-29-04; 8:45 am]
BILLING CODE 8010-01-M