[Federal Register Volume 72, Number 118 (Wednesday, June 20, 2007)]
[Notices]
[Pages 34053-34054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11883]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55907; File No. SR-BSE-2007-21]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change To Amend the Existing Fee 
Schedule

June 13, 2007.
    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 4, 2007, the Boston Stock Exchange (``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 substantially by the Exchange. The BSE has 
designated this proposal as one changing a due, fee, or other charge 
under Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. 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\ 2 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE proposes amending the certain transaction fees set forth in 
the BeX fee schedule as well as the BeX Revenue Sharing formula. The 
text of the proposed rule change is available on the Exchange's Web 
site (http://www.bostonstock.com), at the BSE, 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 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 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 purpose of this filing is to amend certain transaction fees set 
forth in the Boston Equities Exchange (``BeX'') fee schedule as well as 
the BeX Revenue Sharing formula. The BeX fee schedule presently 
provides for uniform credits to Liquidity Providers in the amount of 
$.0027. In the event the trade involves a share price that is less than 
$1.00 Liquidity Providers are presently entitled to a credit in the 
amount of $.0027 per share with a maximum of .3% of quotation price per 
share. Additionally, the BeX Fee Schedule presently imposes a $.0028 
charge on Liquidity Takers. In the event the trade involves a share 
price that is less than $1.00, Liquidity Takers are charged $.0028 with 
a maximum of .3% of quotation price per share. The purpose of this 
proposed amendment to the BeX fee schedule is to eliminate the credit 
presently available to Liquidity Providers. Additionally, this proposed 
amendment will lower the charge presently imposed on Liquidity Takers 
from $.0028 to $.0005. This proposed shift in the traditional economics 
of the existing marketplace will attract volume to BeX by encouraging 
those firms with a high percentage of taking order flow to make BeX 
their chosen routing destination while at the same time encouraging 
Liquidity Providers to provide competitive quotes on BeX with the 
higher probability of getting an execution.
    In this filing, the Exchange also is proposing to amend the revenue 
sharing provision of the BeX fee schedule. Specifically, BSE is 
proposing to eliminate the current tape revenue sharing program for 
single sided orders. The tape revenue sharing program for cross trades 
will remain intact.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\5\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act,\6\ in particular,

[[Page 34054]]

in that it is designed to provide for the equitable allocation of 
reasonable dues, fees, and other charges among Exchange Members and 
issuers and other persons using Exchange facilities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 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 been designated as a fee 
change pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(2) thereunder,\8\ because it establishes or changes a due, fee or 
other charge imposed by the Exchange. Accordingly, the proposal will 
take effect upon filing with the Commission. At any time within 60 days 
of the filing of such 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
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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-2007-21 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-BSE-2007-21. 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 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 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-2007-21 and should be submitted on or before July 
11, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-11883 Filed 6-19-07; 8:45 am]
BILLING CODE 8010-01-P