

[Federal Register: November 16, 2006 (Volume 71, Number 221)]
[Notices]               
[Page 66807-66808]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16no06-112]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54733; File No. SR-BSE-2006-36]

 
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order 
Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to 
the Market Opening Pilot Program for the Boston Options Exchange 
Facility

November 9, 2006.
    On September 1, 2006, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with 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 retroactively reinstate the pilot program rules 
related to market opening procedures on the Boston Options Exchange 
facility (``BOX'') of the Exchange for the period August 6, 2006 
through September 1, 2006. On September 18, 2006, BSE filed Amendment 
No. 1 to the proposed rule change.\3\ The proposed rule change, as 
amended, was published for comment in the Federal Register on October 
2, 2006.\4\ The Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced the original filing in its 
entirety.
    \4\ See Securities Exchange Act Release No. 54507 (September 26, 
2006), 71 FR 58020.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\5\ 
In particular, the

[[Page 66808]]

Commission believes that the proposed rule change, as amended, is 
consistent with Section 6(b) of the Act \6\ in general, and Section 
6(b)(5) of the Act \7\ in specific, which requires that an exchange 
have rules that are designed to prevent fraudulent and manipulative 
acts and practices, to promote just and equitable principles of trade, 
to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, to remove impediments to 
and perfect the mechanism for 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\ The Commission has considered the proposed rule's impact on 
efficiency, competition and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Commission notes that the proposed rule change, as amended, 
will retroactively reinstate the rules governing the market opening 
pilot program currently in use on BOX for the period August 6, 2006 
through September 1, 2006.\8\ Thus, upon approval of this proposed rule 
change, there will effectively be no interruption of the pilot program 
rules governing the market opening on BOX.\9\ The Commission finds that 
the BOX market opening pilot program procedures provide a quicker, more 
efficient, fair and orderly market opening process to the benefit of 
BOX market participants and investors.
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    \8\ On September 1, 2006, BSE filed a proposed rule change, 
which was immediately effective, to extend the market opening pilot 
program from September 1, 2006 through August 6, 2007. See 
Securities Exchange Act Release No. 54467 (September 18, 2006), 71 
FR 55530 (September 22, 2006).
    \9\ Prior to approval of this proposed rule change, however, 
BOX's market opening was operating without effective rules for the 
period August 6, 2006 through September 1, 2006.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (File No. SR-BSE-2006-36), as 
amended, be, and hereby is, approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    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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Nancy M. Morris,
Secretary.
 [FR Doc. E6-19382 Filed 11-15-06; 8:45 am]

BILLING CODE 8011-01-P
