For the purposes of proposed Section 3(k) of Chapter IV of the BOX Rules, Equity Reference Assets, Commodity Reference Assets, Currency Reference Assets, Fixed Income Reference Assets, Futures Reference Assets and Multifactor Reference Assets, will be collectively referred to as ``Reference Assets.''

IndexLinked Securities must meet the criteria and guidelines for underlying securities set forth in Section 3(b) of Chapter IV of the BOX Rules, or the IndexLinked Securities must be redeemable at the option of the holder at least on a weekly basis through the issuer at a price related to the applicable underlying Reference Asset. In addition, the issuing company is obligated to issue or repurchase the securities in aggregation units for cash or cash equivalents satisfactory to the issuer of IndexLinked Securities which underlie the option as described in the IndexLinked Securities prospectus. Continued Listing Requirements

Options on IndexLinked Securities will be subject to all Exchange rules governing the trading of equity options. The current continuing or maintenance listing standards for options traded on BOX will continue to apply.

The Exchange proposes to establish Section 4(k) of Chapter IV of the BOX Rules which will include criteria related to the continued listing of options on IndexLinked Securities.

Under the applicable continued listing criteria in proposed Section 4(k) of Chapter IV of the BOX Rules, options on IndexLinked Securities initially approved for trading pursuant to proposed Section 3(k) of Chapter IV of the BOX Rules may be subject to the suspension of opening transactions as follows: (1) Noncompliance with the terms of Section 3(k) of Chapter IV of the BOX Rules; (2) noncompliance with the terms of Section 4(b) of Chapter IV of the BOX Rules, except in the case of options covering IndexLinked Securities approved pursuant to Section 3(k)(iii)(2) of Chapter IV of the BOX Rules that are redeemable at the option of the holder at least on a weekly basis, then option contracts of the class covering such securities may only continue to be open for trading as long as the securities are listed on a national securities exchange and are an ``NMS stock'' as defined in Rule 600 of Regulation NMS; (3) in the case of any IndexLinked Security trading pursuant to Section 3(k) of Chapter IV of the BOX Rules, the value of the Reference Asset is no longer calculated or available; or (4) such other event shall occur or condition exist that in the opinion of the Exchange makes further dealing in such options on BOX inadvisable.

The Exchange represents that the listing and trading of options on IndexLinked Securities under Section 3(k) of Chapter IV of the BOX Rules will not have any effect on the rules pertaining to position and exercise limits \8\ or margin.\9\
\8\ See Section 7 of Chapter III of the BOX Rules.

\9\ See Section 3 of Chapter XIII of the BOX Rules.

The Exchange will implement surveillance procedures for options on IndexLinked Securities, including adequate comprehensive surveillance sharing agreements with markets trading in nonU.S. components, as applicable. The Exchange represents that these procedures will be adequate to properly monitor Exchange trading of options on these securities and to deter and detect violations of Exchange rules. 2. Statutory Basis

The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\11\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and
[[Page 70394]]
coordination with persons engaged in 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. The Exchange believes that the proposed rules applicable to trading pursuant to generic listing and trading criteria together with the Exchange's surveillance procedures applicable to trading in the securities covered by the proposed rules, serve to foster investor protection.
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory 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. SelfRegulatory 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

Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of filing (or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest), the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(6) of Rule 19b4 thereunder.\13\
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b4(f)(6). The Exchange has satisfied the fiveday prefiling requirement of Rule 19b4(f)(6)(iii).

The Exchange has requested that the Commission waive the 30day operative delay and designate the proposed rule change as operative upon filing. The Commission believes that waiving the 30day operative delay is consistent with the protection of investors and the public interest. The proposed rule change is substantially similar to those of other options exchanges that have been previously approved by the Commission \14\ and does not appear to present any novel regulatory issues. Therefore, the Commission designates the proposal operative upon filing to enable the Exchange to list and trade options on index linked securities without delay.\15\
\14\ See Exchange Act Release Nos. 58203 (July 22, 2008), 73 FR 43812 (July 28, 2008) (SRNYSEArca200857) and 58204 (July 22, 2008), 73 FR 43807 (July 28, 2008) (SRCBOE200864) (approving the listing and trading of options based on indexlinked securities on NYSE Arca and CBOE).
\15\ For purposes only of waiving the 30day operative delay of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).

At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in the furtherance of the purposes of the Act.

IV. 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. Comments may be submitted by any of the following methods:
Electronic Comments

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\
\16\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Acting Secretary.
[FR Doc. E827599 Filed 111908; 8:45 am]
BILLING CODE 801001P

SUMMARY: Boston Stock Exchange, Inc.,

DOCUMENT BODY 2: November 13, 2008.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b4 thereunder,\2\ notice is hereby given that on November 7, 2008, 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 below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change as a ``noncontroversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b 4(f)(6) thereunder,\4\ which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Boston Stock Exchange, Inc. (the ``Exchange'' or ``BSE'') proposes to amend Section 3 (Criteria for Underlying Securities) and Section 4 (Withdrawal of Approval of Underlying Securities) of Chapter IV of the Rules of the Boston Options Exchange Group, LLC (``BOX'') to enable the listing and trading on BOX of options on indexlinked securities. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room, and also on the Exchange's Internet Web site at http:// nasdaqtrader.com/Trader.aspx?id=Boston_Stock_Exchange.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the selfregulatory 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. BSE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.
A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

1. Purpose

This proposed rule change is based on proposals by NYSE Arca, Inc. (``NYSE Arca'') and the Chicago Board Options Exchange, Incorporated (``CBOE'').\5\
\5\ See Exchange Act Release Nos. 58203 (July 22, 2008), 73 FR 43812 (July 28, 2008) (SRNYSEArca200857) and 58204 (July 22, 2008), 73 FR 43807 (July 28, 2008) (SRCBOE200864).

The purpose of the proposed rule change is to revise Sections 3 and 4 of Chapter IV of the BOX Rules to enable the listing and trading of options on: Equity indexlinked securities (``Equity IndexLinked Securities''); commoditylinked securities (``CommodityLinked Securities''); currencylinked securities (``CurrencyLinked Securities''); fixed income indexlinked securities (``Fixed Income IndexLinked Securities''); futureslinked securities (``FuturesLinked Securities''); and multifactor indexlinked securities (``Multifactor IndexLinked Securities''); collectively known as ``IndexLinked Securities'' that are principally traded on a national securities exchange and are defined as an ``NMS stock'' (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934 (the ``Act'')).

IndexLinked Securities are designed for investors who desire to participate in a specific market segment by providing exposure to one or more identifiable underlying securities, commodities, currencies, derivative instruments or market indexes of the foregoing (``Underlying Index'' or ``Underlying Indexes''). IndexLinked Securities are the nonconvertible debt of an issuer
[[Page 70393]]
that have a term of at least one (1) year but not greater than thirty (30) years. Despite the fact that IndexLinked Securities are linked to an underlying index, each trades as a single, exchangelisted security. Accordingly, rules pertaining to the listing and trading of standard equity options will apply to options on IndexLinked Securities. The Exchange does not propose any changes to rules pertaining to Index Options.

Listing Criteria

The Exchange will consider listing and trading options on Index Linked Securities provided that the IndexLinked Securities meet the criteria for underlying securities set forth in Section 3 of Chapter IV of the BOX Rules.

The Exchange proposes that IndexLinked Securities deemed appropriate for options trading represent ownership of a security that provides for the payment at maturity, as described below:

For the purposes of proposed Section 3(k) of Chapter IV of the BOX Rules, Equity Reference Assets, Commodity Reference Assets, Currency Reference Assets, Fixed Income Reference Assets, Futures Reference Assets and Multifactor Reference Assets, will be collectively referred to as ``Reference Assets.''

IndexLinked Securities must meet the criteria and guidelines for underlying securities set forth in Section 3(b) of Chapter IV of the BOX Rules, or the IndexLinked Securities must be redeemable at the option of the holder at least on a weekly basis through the issuer at a price related to the applicable underlying Reference Asset. In addition, the issuing company is obligated to issue or repurchase the securities in aggregation units for cash or cash equivalents satisfactory to the issuer of IndexLinked Securities which underlie the option as described in the IndexLinked Securities prospectus. Continued Listing Requirements

Options on IndexLinked Securities will be subject to all Exchange rules governing the trading of equity options. The current continuing or maintenance listing standards for options traded on BOX will continue to apply.

The Exchange proposes to establish Section 4(k) of Chapter IV of the BOX Rules which will include criteria related to the continued listing of options on IndexLinked Securities.

Under the applicable continued listing criteria in proposed Section 4(k) of Chapter IV of the BOX Rules, options on IndexLinked Securities initially approved for trading pursuant to proposed Section 3(k) of Chapter IV of the BOX Rules may be subject to the suspension of opening transactions as follows: (1) Noncompliance with the terms of Section 3(k) of Chapter IV of the BOX Rules; (2) noncompliance with the terms of Section 4(b) of Chapter IV of the BOX Rules, except in the case of options covering IndexLinked Securities approved pursuant to Section 3(k)(iii)(2) of Chapter IV of the BOX Rules that are redeemable at the option of the holder at least on a weekly basis, then option contracts of the class covering such securities may only continue to be open for trading as long as the securities are listed on a national securities exchange and are an ``NMS stock'' as defined in Rule 600 of Regulation NMS; (3) in the case of any IndexLinked Security trading pursuant to Section 3(k) of Chapter IV of the BOX Rules, the value of the Reference Asset is no longer calculated or available; or (4) such other event shall occur or condition exist that in the opinion of the Exchange makes further dealing in such options on BOX inadvisable.

The Exchange represents that the listing and trading of options on IndexLinked Securities under Section 3(k) of Chapter IV of the BOX Rules will not have any effect on the rules pertaining to position and exercise limits \8\ or margin.\9\
\8\ See Section 7 of Chapter III of the BOX Rules.

\9\ See Section 3 of Chapter XIII of the BOX Rules.

The Exchange will implement surveillance procedures for options on IndexLinked Securities, including adequate comprehensive surveillance sharing agreements with markets trading in nonU.S. components, as applicable. The Exchange represents that these procedures will be adequate to properly monitor Exchange trading of options on these securities and to deter and detect violations of Exchange rules. 2. Statutory Basis

The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\11\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and
[[Page 70394]]
coordination with persons engaged in 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. The Exchange believes that the proposed rules applicable to trading pursuant to generic listing and trading criteria together with the Exchange's surveillance procedures applicable to trading in the securities covered by the proposed rules, serve to foster investor protection.
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory 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. SelfRegulatory 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

Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of filing (or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest), the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and subparagraph (f)(6) of Rule 19b4 thereunder.\13\
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b4(f)(6). The Exchange has satisfied the fiveday prefiling requirement of Rule 19b4(f)(6)(iii).

The Exchange has requested that the Commission waive the 30day operative delay and designate the proposed rule change as operative upon filing. The Commission believes that waiving the 30day operative delay is consistent with the protection of investors and the public interest. The proposed rule change is substantially similar to those of other options exchanges that have been previously approved by the Commission \14\ and does not appear to present any novel regulatory issues. Therefore, the Commission designates the proposal operative upon filing to enable the Exchange to list and trade options on index linked securities without delay.\15\
\14\ See Exchange Act Release Nos. 58203 (July 22, 2008), 73 FR 43812 (July 28, 2008) (SRNYSEArca200857) and 58204 (July 22, 2008), 73 FR 43807 (July 28, 2008) (SRCBOE200864) (approving the listing and trading of options based on indexlinked securities on NYSE Arca and CBOE).
\15\ For purposes only of waiving the 30day operative delay of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f).

At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in the furtherance of the purposes of the Act.

IV. 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. Comments may be submitted by any of the following methods:
Electronic Comments

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\
\16\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Acting Secretary.
[FR Doc. E827599 Filed 111908; 8:45 am]
BILLING CODE 801001P