[Federal Register Volume 72, Number 153 (Thursday, August 9, 2007)]
[Notices]
[Pages 44891-44892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15545]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56194; File No. SR-BSE-2007-32]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto to Amend the Existing Fee Schedule

August 2, 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 July 5, 2007, 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 substantially prepared 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. On July 20, 2007, BSE filed Amendment 
No. 1 to the proposed rule change.\5\ The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
    \5\ In Amendment No. 1, the Exchange replaced the term 
Intermarket Sweep Order (``ISO'') with the phrase ``order routed as 
a part of an NMS Cross Order'' and the term ``Reg NMS cross'' with 
the phrase ``NMS Cross Order''. In addition, the Exchange updated 
the BeX fee schedule to reflect these changes.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE proposes to amend certain transaction fees set forth in the 
Boston Equities Exchange (``BeX'') fee schedule. The text of the 
proposed rule change is available at 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 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
    On November 20, 2006, the BSE filed File No. SR-BSE-2006-44,\6\ a 
rule filing that amended the existing BSE fee schedule and established 
a fee schedule for the BeX, a facility of the Exchange. On March 5, 
2007, a subsequent filing, SR-BSE-2007-13,\7\ was made to add a new 
Smart Order Routing fee. On June 28, 2007, the Exchange filed an 
additional fee filing, SR-BSE-2007-29 \8\ to lower the rate for this 
service.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 54795 (November 20, 
2006), 71 FR 68850 (November 28, 2007).
    \7\ See Securities Exchange Act Release No. 55529 (March 26, 
2007), 72 FR 15734 (April 2, 2007).
    \8\ See Securities Exchange Act Release No. 56129 (July 25, 
2007), 72 FR 42157 (August 1, 2007).
---------------------------------------------------------------------------

    In this filing, the Exchange is proposing to implement a fee for 
orders routed as a part of an NMS Cross Order,\9\ which the Exchange 
has developed to help firms comply with the trade-through requirements 
of Regulation NMS. An NMS Cross Order consists of a priced cross with 
two quantities: (i) The quantity that the customer wants to cross; and 
(ii) the ``disinterest'' quantity, which is the additional single-sided 
amount that the customer is willing to add in order to fulfill 
Regulation NMS obligations.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 55903 (June 13, 
2007), 72 FR 33792 (June 19, 2007) (SR-BSE-2007-24).
---------------------------------------------------------------------------

    When this new order type is received, the Exchange will look at the 
best bids and offers at all Regulation NMS venues and route orders, as 
needed, up to the disinterest quantity. The cross will then be executed 
and reported back to the customer, along with any executions from the 
routed orders. If the disinterest quantity is not large enough to 
satisfy the size of the total trade-through on all markets, no orders 
will be routed and the entire cross will be rejected.

[[Page 44892]]

    The orders routed as a result of an NMS Cross Order will be added 
to the Exchange's other order routing products and will be charged at a 
rate of $0.0020 per share if a firm uses its own give-up on another 
market center and $0.0060 per share if a firm used a BeX provided give-
up on another market center.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of section 6(b) of the Act,\10\ in general, and 
furthers the objectives of section 6(b)(4) of the Act,\11\ in 
particular, 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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)(ii) of the Act \12\ and Rule 
19b-4(f)(2) thereunder,\13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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-2007-32 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BSE-2007-32. 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, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will 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-2007-32 and should be 
submitted on or before August 30, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
 Deputy Secretary.
[FR Doc. E7-15545 Filed 8-8-07; 8:45 am]
BILLING CODE 8010-01-P