[Federal Register Volume 70, Number 28 (Friday, February 11, 2005)]
[Notices]
[Pages 7315-7316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-581]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51137; File No. SR-BSE-2005-06]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Inc. Relating to Its Minor Rule Violation Plan

February 4, 2005.
    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 January 31, 2005, the Boston Stock Exchange, Inc. (``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 
Exchange designated its filing as non-controversial pursuant to section 
19(b)(3)(A) of the Act\3\ and Rule 19b-4(f)(6).\4\ Accordingly, the 
proposed rule change became effective upon filing. 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).
    \2\ 2 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to amend its rules related to its Minor Rule 
Violation Plan (``MRVP''). The text of the proposed rule change is 
available on BSE's Web site (http://www.bostonstock.com/legal/
index.html), at BSE's principal office, and at the Commission's Public 
Reference Room.

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

[[Page 7316]]

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 new section to its MRVP which 
would set forth procedures for a member against whom formal 
disciplinary action is taken by the Exchange to consent to the charges 
being levied and waive formal disciplinary hearing. These procedures 
would be similar to those set forth in NASD Rule 9216, ``Acceptance, 
Waiver, and Consent; Plan Pursuant to SEC Rule 19d-1(c)(2),'' and 
provide that a BSE member may, upon being notified of disciplinary 
charges by the Exchange's Enforcement Department, execute a written 
letter which (1) accepts the charges, (2) consents to the imposition of 
a sanction, and (3) agrees to waive the right to a hearing of appeal to 
challenge the validity of the letter. In proposing such procedures, the 
Exchange is seeking to provide its members with an intermediary 
disciplinary step, short of a formal hearing, which would permit its 
members to avoid formal proceedings in instances where they accept 
liability from the outset.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(5) 
of the Act,\5\ in that it is designed to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating securities transactions, to remove 
impediments to perfect the mechanism of a free and open market and a 
national market system and, in general, to protect investors and the 
public interest.
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    \5\ 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 any comments on 
this proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    BSE asserts that the foregoing rule has become effective pursuant 
to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) thereunder 
\7\ because it does not significantly affect the protection of 
investors or the public interest or impose any significant burden on 
competition. BSE has requested that the Commission waive the 
requirement that the rule change not become operative for 30 days after 
the date of the filing, as set forth in Rule 19b-4(f)(6)(iii).\8\ The 
Commission finds good cause for the proposed rule change to become 
operative prior to the 30th day after the date of publication of notice 
of filing in the Federal Register. The Commission notes that the 
proposed rule is substantially similar to NASD Rule 9216,\9\ which was 
previously approved by the Commission after notice and comment and, 
therefore, does not raise any new regulatory issues.\10\
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    \6\ 5 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6)(iii).
    \9\ See Securities Exchange Release No. 32383 (May 28, 1993), 58 
FR 31768 (June 4, 1993) (SR-NASD-93-6).
    \10\ Rule 19b-4(f)(6) also requires a self-regulatory 
organization to give written notice of a proposed rule change filed 
pursuant to this subsection at least five business days prior to 
filing. BSE complied with this requirement.
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    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 purposes of the Act.

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. 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-2005-06 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-2005-06. 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 such 
filing also will be available for inspection and copying at the 
principal office of 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-2005-06 and should be submitted on or before March 4, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-581 Filed 2-10-05; 8:45 am]
BILLING CODE 8010-01-P