[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16747]
[[Page Unknown]]
[Federal Register: July 12, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34309; File No. SR-BSE-94-08]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by Boston Stock Exchange, Inc. Relating to Additions to Its
Minor Rule Violation Plan
July 5, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on May 6,
1994, 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 self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE seeks to amend its Minor Rule Violation Plan (``Plan'') to
provide for the imposition of summary fines for violation of certain
specified Exchange rules and policy by revising the List of Exchange
Rule Violations and Fines Applicable Thereto Pursuant to Section 4 of
Chapter XVIII (``List'') for the imposition of fines by adding the
following rule and policy violations:\1\
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\1\The BSE also has requested approval, under Rule 19d-1(c)(2),
17 CFR 240.19-1(c)(2), to amend its Rule 19d-1 minor rule violation
enforcement and reporting plan to include these policy violations.
See letter from Karen Aluise, Staff Attorney, to Sandy Sciole,
Special Counsel, Division, dated April 28, 1994.
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1. Failure to Promptly Respond to Exchange Blue Sheet Requests or
File Regularly Scheduled Financial (FOCUS, SIPC) and/or Regulatory
Reports (Specialist Performance Evaluation Questionnaire, Quarterly
Option Report);
2. Improper Use of the ITS Administrative Message Function; and
3. Failure to Register Floor Employees and Complete Appropriate
Forms.
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 self-regulatory organization
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 self-regulatory organization
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's Plan provides that the Exchange may impose a fine,
not to exceed $2,500, on any member, member organization, allied
member, approved person, registered or non-registered employee of a
member or member organization for a minor violation of certain
specified Exchange rules.\2\
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\2\The BSE's Plan for enforcing and reporting minor disciplinary
rule violations was approved by the Commission in Securities
Exchange Act Release No. 26737 (April 17, 1989), 54 FR 16438-I
(April 24, 1989) (File No. SR-BSE-88-2).
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The purpose of the Plan is to provide for a response to a rule
violation when a sanction is appropriate but when initiation of a full
disciplinary proceeding is not suitable because such proceeding would
be more costly and onerous than would be warranted given the minor
nature of the violation. The Plan provides for an appropriate response
to minor violations of certain Exchange rules while preserving the due
process rights of the party accused through specified, required
procedures.
In the Exchange's initial filing which set forth the provisions and
procedures of the Plan, the Exchange indicated that it periodically
would amend the list of rules subject to the Plan as the Exchange
deemed appropriate. The Exchange now seeks to add the aforementioned
rules and policy to the List.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(6)
of the Act, in that its members and persons associated with its members
will be appropriately disciplined for violation of rules and policies
where the Exchange has determined that such violation is minor in
nature. In accordance with Sections 6(b)(7) and 6(d)(1) of the Act, the
Plan provides for a fair disciplinary procedure for the imposition of
sanctions.
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 has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the publication of this notice in the Federal
Register or within such other period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. 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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the BSE. All
submissions should refer to File No. SR-BSE-94-08 and should be
submitted by August 2, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-16747 Filed 7-11-94; 8:45 am]
BILLING CODE 8010-01-M
