[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Notices]
[Pages 70170-70172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33557]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 40785; File No. SR-BSE-98-10]
Self-Regulatory Organizations; Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change by the Boston
Stock Exchange, Inc. Relating to Its Trading Floor Post and
Telecommunications Room Policies
December 11, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 20, 1998, 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 and II and below, which items have been
prepared by the BSE. The Commission is publishing this notice
[[Page 70171]]
and order to solicit comments on the proposed rule change from
interested persons and to approve the proposal on an accelerated basis.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange seeks to adopt written policies and procedures to
address certain issues related to the Exchange's scheduled move to its
new trading floor (``Floor'') \2\ to control access to secure areas and
to give jurisdiction over posts to the Floor Facilities Committee
(``Committee'').
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\2\ The Exchange is scheduled to move to its new Floor on
January 4, 1998.
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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 V 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
1. Purpose
The purpose of the proposed rule change is to amend the Exchange's
Floor policies with respect to post assignment and telecommunications
room (``Comm Room'') access in anticipation of the Exchange's scheduled
move. These changes are generally intended to address administrative
issues regarding space needs for members and equipment, as well as
security issues.
The proposed rule gives the Committee jurisdiction over the
assignment and appearance of posts, and further provides that (1) any
post relocation or alteration of any post requires the prior consent of
the Committee; (2) the Committee may relocate a member firm to another
area of the Floor to accommodate the space needs of the Exchange; (3)
the Committee will determine which posts will be vacated when a firm
seeks to relinquish a portion of its existing posts; (4) a member firm
is prohibited from utilizing an unassigned post for any purpose without
the prior approval of the Exchange; (5) any unauthorized use of a
vacant post(s) will result in the immediate removal of all equipment
and materials at the expense of the member; (6) the storage of all
member firm tickets, reports and other materials must be within the
cabinets provided by the Exchange, at the Exchange's warehouse, or in
such other area as designated by the Exchange; (7) the storage of
materials in an unauthorized area of the Floor will result in the
immediate removal of that material to the warehouse, with all costs
paid by the member firm; (8) no member firm shall place or install any
personal equipment (i.e., computers, file cabinets, chairs, bulletin
boards, tables, shelves, desks) without the prior consent of the
Exchange; and (9) any unauthorized equipment will be immediately
removed at the expense of the member firm.
In addition, the proposed rule change seeks to define and limit
access to the Comm Room and the Floor for security reasons. It requires
that (1) member firms must obtain a permit number from the Exchange
prior to any installation or servicing of hardware or
telecommunications equipment; (2) any service call made by a member
firm for repairs to equipment or lines must be reported to the
Exchange, and no vendor will be permitted to access the Comm Room or
the Floor without prior notification to the Exchange and accompaniment
by an authorized Exchange staff member or floor member; and (3) any
equipment removal from any Exchange location must be accompanied by a
property removal pass issued by an authorized Exchange staff member.
2. Statutory Basis
The Exchange believes the filing is consistent with and furthers
the objectives of Section 6(b)(5) of the Act \3\ and the rules and
regulations thereunder applicable to a national securities exchange, in
that it is designed to facilitate securities transactions and to remove
impediments to and perfect the mechanism of a free and open market; and
is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\3\ 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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange did not solicit or receive comments with respect to
the proposed rule change.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange and, in
particular, the requirements of Section 6 of the Act \4\ and the rules
and regulations thereunder. Section 6(b)(5) \5\ of the Act states that
the rules of an exchange must be designed to foster cooperation and
coordination with persons engaged regulating, clearing, settling,
processing information with respect to, and facilitating securities
transactions. These rules also must help to remove impediments to and
perfect the mechanism of a free and open market. The Commission
believes the proposed Post and Comm Room Rules are consistent with this
provision of the Act in that they will facilitate the Exchange's move
to its new Floor and minimize disruptions in trading that may result
from such move. Specifically, the Commission believes that the proposed
Post Rules will enable the Exchange to function in a more orderly
fashion by providing the Committee with the authority to assign and
relocate members to post locations on the trading floor and by
requiring members to obtain the Exchange's prior consent prior to
placing equipment at post. The Commission also believes that the
proposed Comm Room Rules, which limit access to the Comm Room and the
Floor and require a permit from the Exchange prior to the installations
or removal of any telecommunications equipment, will adequately provide
security to the Exchange's Floor and Comm Room and permit the Exchange
to prepare for any disruptions that may occur during installation or
removal of equipment.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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IV. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Pursuant to Section 19(b)(2) of the Act,\6\ the Commission finds
good cause for approving the proposed rule change prior to the 30th day
after the date of publication of notice of filing thereof in the
Federal Register because the
[[Page 70172]]
Commission believes that accelerated approval will enable the Exchange
to move to its new Floor with minimal disruptions in trading.\7\
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\6\ 15 U.S.C. 78s(b)(2).
\7\ In reviewing this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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V. 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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of the submissions, 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 in Washington, D.C. Copies of such
filing will also be available for inspection and copying at the
principal office at the above-mentioned self-regulatory organization.
All submissions should refer to File No. BSE-98-10 and should be
submitted by January 8, 1999.
VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-BSE-98-10), hereby is
approved on an accelerated basis.
\8\ 15 U.S.C. 78s(b)(2).
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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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-33557 Filed 12-17-98; 8:45 am]
BILLING CODE 8010-01-M