[Federal Register Volume 70, Number 16 (Wednesday, January 26, 2005)]
[Notices]
[Pages 3756-3757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-281]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51049; File No. SR-BSE-2004-52]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto 
Relating to Market Maker Quote Obligations Under the Rules of the 
Boston Options Exchange Facility

January 18, 2005.
    On November 24, 2004, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder \2\, a 
proposed rule change to adopt a rule under the rules of the Boston 
Options Exchange Facility (``BOX'') to provide BOX Market Makers 
protection from the unreasonable risk associated with communication 
failures and systemic errors. On December 3, 2004, the BSE submitted 
Amendment No. 1 to the proposed rule change. The proposed rule change, 
as modified by Amendment No. 1, was published for comment in the 
Federal Register on December 14, 2004.\3\ The Commission received no 
comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 50814 (December 7, 
2004), 69 FR 74547 (December 14, 2004).
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules

[[Page 3757]]

and regulations thereunder that are applicable to a national securities 
exchange.\4\ In particular, the Commission believes that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\5\ which 
requires among other things, that the rules of the Exchange are 
designed to promote just and equitable principles of trade, 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. The Commission notes that the proposal does not alter 
the obligations of BOX Market Makers. The proposed rule change codifies 
BOX system functionality which should provide BOX Market Makers 
assistance in effectively managing their quotations.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-BSE-2004-52) be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    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. E5-281 Filed 1-25-05; 8:45 am]
BILLING CODE 8010-01-P