[Federal Register Volume 65, Number 138 (Tuesday, July 18, 2000)]
[Notices]
[Pages 44551-44552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18069]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43024; File No. SR-AMEX-00-35]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC Relating to Index Fund Shares (Amex Rules 1000A and 127)

July 12, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 30, 2000, the American Stock Exchange Inc. (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to add Commentary .04 to Amex Rule 1000A 
(Index Fund Shares) regarding hours of trading for iShares Index Funds 
and iShares MSCI Index Funds; and to amend Commentary .02 to Amex Rule 
127 (Minimum Fractional Changes), relating to these securities. Below 
is the text of the proposed rule change: New language is italicized, 
and deletions are bracketed.

Index Fund Shares
Rule 1000A
    * * * Commentary
    [.02] .04 Transactions in [series of the] iShares \SM\ Index 
Funds of the iShares Trust may be effected until 4:15 p.m. (New York 
Time) each business day. Transactions in iShares MSCI Index Funds 
(formerly ``WEBS Index Series'') of iShares, Inc. may be effected 
until 4:00 p.m. (New York Time).
* * * * *
Minimum Fractional Changes
Rule 127
    * * * Commentary
    .02 The minimum fractional change for dealings in Index Fund 
Shares listed under Rule 1000A et seq. shall be \1/16\ of $1.00. 
However, the minimum fractional change for dealings in Select Sector 
SPDRs \SM\, Technology 100 Index Fund Shares and [series of] 
iShares\SM\ Index Funds of the Shares \SM\ Trust shall be \1/64\ of 
$1.00. Transactions in iShares MSCI Index Funds (formerly WEBS Index 
Series) of iShares, Inc. shall be \1/16\ of $1.00.

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 Exchange 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 Exchange 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
    In File No. SR-Amex-99-49,\3\ the Commission approved Commentary 
.02 to Amex Rule 1000A, which provided that transactions in series of 
the iShares Trust may be effected until 4:15 p.m. each business day. 
The Exchange is renumbering this Commentary .02 to Commentary .04 to 
eliminate conflict with Commentary .02 to Amex Rule 1000A, approved by 
the Commission in SR-Amex-00-14 relating to generic listing criteria 
for Index Fund Shares.\4\ The Exchange is further amending new 
Commentary .04 to distinguish between: (1) iShares MSCI Index Funds, 
(formerly WEBS Index Series), and (2) iShares Index Funds of the 
iShares Trust. As of May 15, 2000, WEBS Index Series have been renamed 
iShares MSCI Index Funds and WEBS Index Fund, Inc. has been renamed 
iShares, Inc. iShares MSCI Index Funds trade until 4:00 p.m. (New York 
time). However, iShares Index Funds of the iShares Trust, which do not 
include iShares MSCI Index Funds, trade until 4:15 p.m. (New York 
time). Commentary .04 to Amex rule 1000A states the different trading 
hours for these securities.
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    \3\ See Securities Exchange Act Release No. 42786 (May 15, 
2000), 65 FR 33586 (May 24, 2000).
    \4\ See Securities Exchange Act Release No. 42786 (May 15, 
2000), 65 FR 33598 (May 24, 2000).
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    In File No. SR-Amex-99-49, the Commission also approved an 
amendment to Commentary .02 to Amex Rule 127 (Minimum Fractional 
Changes), to provide that trading in series of the iShares Trust will 
be in increments of 1/64 \5\ Commentary .02 is amended to refer to 
these securities as ``ishares SM Index Funds of the iShares Trust.'' 
MSCI Index Funds trade in 1/16's, the same trading increment as the 
former WEBS Index Series. The

[[Page 44552]]

Exchange is amending Commentary .02 to Amex Rule 127 to clarify the 
different trading increments between these securities.
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    \5\ See supra note 3.
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    The Exchange represents that these amendments to Amex Rules 1000A 
and 127 are strictly clarifying in nature and provide no change from 
existing hours of trading or trading increments for these securities.
2. Statutory Basis
    The Exchanges believes the proposed rule change is consistent with 
Section 6(b) \6\ of the Act in general and furthers the objectives of 
Section 6(b)(5) \7\ in particular in that is it designed to prevent 
fraudulent and manipulative acts and practices, 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, and, in general, to protect investors and the public 
interest.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange represents that the proposed rule change will impose 
no burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(3) thereunder\9\ 
because the proposed rule change is concerned solely with the 
administration of the Exchange. 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.\10\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(3).
    \10\ 15 U.S.C. 78s(b)(3)(C).
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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. 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-
0609. 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 Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-AMEX-00-35 and 
should be submitted by August 8, 2000.
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    \11\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\11\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-18069 Filed 7-17-00; 8:45 am]
BILLING CODE 8010-01-M