MEMORANDUM

TO: File
FROM: John Roeser
DATE: October 10, 2003
RE: Conference Call with Goldman Sachs on Proposed Rule Change by the Boston Stock Exchange, Inc. Establishing Trading Rules for the Boston Options Exchange Facility, Release Nos. 34-47186 and 34-48355, File No. SR-BSE-2002-15


On October 10, 2003, members of the Division of Market Regulation staff (Annette Nazareth, Elizabeth King, Debby Flynn, and John Roeser) participated in a conference call with Susan Sidd, Scott Prince, Marc Spilker, and Pat Levy to discuss the Boston Stock Exchange's proposed new electronic options trading facility. In particular, the Goldman Sachs representatives raised concerns regarding the proposed Price Improvement Period and trading in penny increments.