Professional Documents
Culture Documents
it did in the previous orders,15 that the solicit comments on the proposed rule Improvement Period (‘‘PIP’’) process.5
de minimis exemption does not relieve change from interested persons. The proposed rule change retains the
brokers and dealers of their best text of Supplementary Material .01 to
I. Self-Regulatory Organization’s
execution obligations under the federal Section 18 of Chapter V of the BOX
Statement of the Terms of Substance of
securities laws and SRO rules. Rules and seeks to extend the operation
the Proposed Rule Change
Accordingly, it is ordered, pursuant to of the PIP Pilot Program until July 18,
Section 11A of the Act and Rule 608(e) The text of the proposed rule change 2007.
thereunder,16 that participants of the is below. Proposed new language is The Exchange notes that the PIP Pilot
ITS Plan and their members are hereby underlined; proposed deletions are in Program provides small customer orders
exempt from Section 8(d) of the ITS [brackets]. with benefits not available under the
Plan during the period covered by this * * * * * rules of other exchanges. One of the
Order with respect to transactions in important factors of the PIP Pilot
DIAs and SPYs that are executed at a Chapter V, Section 18 Program is that it guarantees members
price that is no more than three cents Supplementary Material to Section 18 the right to trade with their customer
lower than the highest bid displayed in orders that are less than 50 contracts. In
CQS and no more than three cents .01 During the extended Pilot Period particular, any order entered into the
higher than the lowest offer displayed in [from August 7, 2005 to July 18, 2006], PIP is guaranteed an execution at the
CQS. This Order extends the de minimis there will be no minimum size end of the auction at a price at least a
exemption from June 29, 2006 through requirement for Customer Orders to be penny better than the national best bid
February 4, 2007. eligible for the PIP process. During this or offer.
extended Pilot Period, BOXR will In further support of this proposed
By the Commission. continue to submit certain data, rule change, and as required by the
Nancy M. Morris, periodically as required by the Original PIP Pilot Program Approval
Secretary. Commission, to provide supporting Order, the Exchange represents that it
[FR Doc. E6–10493 Filed 7–5–06; 8:45 am] evidence that, among other things, there has been submitting to the Commission
BILLING CODE 8010–01–P is meaningful competition for all size a monthly PIP Pilot Program Report,
PIP orders, that there is significant price offering detailed data from and analysis
improvement for all orders executed of the PIP Pilot Program.
SECURITIES AND EXCHANGE through the PIP, and that there is an
COMMISSION active and liquid market functioning on 2. Statutory Basis
BOX outside of the PIP mechanism. Any The Exchange believes that the data
[Release No. 34–54066; File No. SR–BSE– data which is submitted to the demonstrates that there is sufficient
2006–24] Commission by BOXR will be provided investor interest and demand to extend
on a confidential basis. The Pilot Period the Pilot Program for another year. The
Self-Regulatory Organizations; Boston shall expire on July 18, 2007. Exchange represents that the proposed
Stock Exchange, Inc.; Notice of Filing .02 No Change. rule change is designed to provide
and Immediate Effectiveness of investors with real and significant price
Proposed Rule Change To Extend a * * * * *
improvement regardless of the size of
Pilot Program That Allows for No II. Self-Regulatory Organization’s the order. Accordingly, the Exchange
Minimum Size Order Requirement for Statement of the Purpose of, and believes that the proposal is consistent
the Price Improvement Period Process Statutory Basis for, the Proposed Rule with the requirements of Section 6(b) of
on the Boston Options Exchange Change the Act,6 in general, and Section 6(b)(5)
of the Act,7 in particular, in that it is
June 29, 2006. In its filing with the Commission, the designed to provide price improvement
Pursuant to Section 19(b)(1) of the Exchange included statements to any order, which is consistent with
Securities Exchange Act of 1934 concerning the purpose of, and basis for, the public interest and protection of
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 the proposed rule change and discussed investors from a best execution
notice is hereby given that on June 19, any comments it received on the standpoint. Additionally, the Exchange
2006, the Boston Stock Exchange, Inc. proposed rule change. The text of these believes that price improvement to any
(‘‘BSE’’ or ‘‘Exchange’’) filed with the statements may be examined at the size order creates competition for the
Securities and Exchange Commission places specified in Item IV below. The best execution of all orders, without
(‘‘Commission’’) the proposed rule Exchange has prepared summaries, set unduly burdening competition.
change as described in Items I, II and III forth in Sections A, B, and C below, of
below, which items have been prepared the most significant aspects of such B. Self-Regulatory Organization’s
by BSE. The Exchange has designated statements. Statement on Burden on Competition
the proposed rule change as a ‘‘non- A. Self-Regulatory Organization’s The Exchange does not believe that
controversial’’ rule change pursuant to Statement of the Purpose of, and the proposed rule change will result in
Section 19(b)(3)(A)(iii) of the Act 3 and Statutory Basis for, the Proposed Rule any burden on competition that is not
Rule 19b–4(f)(6) thereunder,4 which Change necessary or appropriate in furtherance
renders the proposal effective upon of the purposes of the Act.
filing with the Commission. The 1. Purpose
Commission is publishing this notice to The purpose of the proposed rule
5 The Pilot Program is currently set to expire on
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Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices 38435
to Nancy M. Morris, Secretary, 2006, the Chicago Board Options the underlying security or calculated by
Securities and Exchange Commission, the Exchange or its agent, as applicable.
10 17 CFR 200.30–3(a)(12).
8 15 U.S.C. 78s(b)(3)(A)(iii). 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6). 2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(6).
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