[Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
[Notices]
[Pages 43628-43629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20697]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36100; File No. SR-BSE-95-02, Amendment No. 1]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Boston Stock Exchange, Inc. Relating to its Competing
Specialist Initiative
August 14, 1995.
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 August
10, 1995, 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 II below, which
Items have been prepared by the self-regulatory organization.\1\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
\1\ On February 6, 1995, the BSE filed the proposed rule change
being amended herein. It was subsequently published for comment in
Securities Exchange Act Release No. 35404 (February 22, 1995), 60 FR
10882 (February 28, 1995).
[[Page 43629]]
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE seeks to clarify the priority rule as it pertains to its
Competing Specialist Initiative. The language of the proposed rule
change is as follows where deletions are [bracketed] and additions are
italicized:
Because there is only one Exchange market in a security subject to
competition, all limit [Limit] orders sent to the Exchange will be
maintained by the BEACON System's central limit book and will be
[entrusted to each competing specialist are to be represented and]
executed strictly according to time priority as to receipt of the order
in the BEACON System, irrespective of firm order routing procedures.
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 purpose of the proposed amendment is to clarify the priority
rule regarding the execution of limit orders on the central limit order
book in securities subject to competition, which provides that limit
orders will be executed in the same order in which they are received by
the BEACON System, i.e., according to strict time priority.
2. Statutory Basis
The BSE believes that the statutory basis for this proposal is
Section 6(b)(5) of the Act in that it furthers the objectives 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 of a free and open market and a national market system, and
in general, to protect investors and the public interest, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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 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 longer 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, N.W., Washington, D.C. 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. 552, will be available for inspection and copying at the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 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-95-02, Amendment No. 1 and
should be submitted by September 12, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-20697 Filed 8-21-95; 8:45 am]
BILLING CODE 8010-01-M
