[Federal Register Volume 65, Number 168 (Tuesday, August 29, 2000)]
[Notices]
[Pages 52456-52457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21962]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-43191; File No. SR-AMEX-00-45]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange
LLC Relating to Amendments to the FORTUNE Indexes
August 22, 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 August 16, 2000, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the propose rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The proposed rule change has been filed by the Amex as a
``non-controversial'' rule change under Rule 19b-4(f)(6) \3\ under the
Act. 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.
\3\ 17 CFR 240.19b-4(f)(6).
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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 .07 to Amex Rule 915; Amex
Rule 902C(k); and Amex Rule 1004A, relating to disclaimers of liability
and warranties with respect to the FORTUNE Indexes. The text of the
proposed rule change is available at the Office of the Secretary, Amex
and at the Commission.
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.
[[Page 52457]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange intends to list Index Funds Shares based on the
FORTUNE 500 Index and the FORTUNE e-50 Index pursuant to Rule 19b-4(e)
under the Act. In addition, the Exchange will trade options on the
Indexes as well as options on the Index Fund Shares based on the
Indexes. The Exchange proposes to add Amex Rules 1004A, 902C(k), and
Commentary .07 to Rule 915 (``Rules'') relating to various disclaimers
of liability and warranties in connection with the Indexes and trading
in Index Fund Shares, index options, and options on the Index Fund
Shares based on the Indexes (collectively, ``Products''). The Rules
would provide, among other things, that the Indexes are licensed for
use by the Exchange in connection with the Products; that the Products
have not passed on by FORTUNE for suitability for a particular use; and
that the Products are not sponsored, endorsed, sold or promoted by
FORTUNE. The Rules also state that FORTUNE does not warrant the
accuracy and/or completeness of the Indexes or the data included
therein, results to be obtained from use of the Indexes or such data,
or fitness for a particular use with respect to the Indexes or such
data.
Proposed Amex Rule 1004A is similar to Amex Rules 1004, 1005 and
1006, which provide various disclaimers for Standard & Poor's, Dow
Jones, and Nasdaq Indexes in connection with Portfolio Depositary
Receipts (e.g., SPDRs, DIAMONDS, and Nasdaq-
100 Index Tracking Stock). Proposed Amex Rule 902C(k) is
similar to various disclaimers in Rule 902C(c) through (j) relating to
index options. Commentary .06 to Amex Rule 915 sets forth criteria
applicable to options on Exchange-Traded Fund Shares, including Index
Fund Shares, and proposed Commentary .07 to Amex Rule 915 establishes
an approach similar to that in Amex Rules 1004-1006 and 902C for index
disclaimers with respect to options on Index Fund Shares.
2. Statutory Basis
The proposed rule change is consistent with section 6(b) \4\ of the
Act in general and furthers the objectives of section 6(b)(5) \5\ in
particular in that is it designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investor and the public interest; and are not
designed to permit unfair discrimination between customers, issuers,
brokers and dealers.
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\4\ 15 U.S.C. 78f.
\5\ 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 \6\ and Rule 19b-4(f)(6) thereunder \7\
because the proposed rule change has been properly designated from the
Amex as effecting a change that: (1) Does not significantly affect the
protection of investors or the public interest; (2) does not impose any
significant burden on competition; and (3) does not become operative
for 30 days from the date of filing, or such shorter time that the
Commission may designate if consistent with the protection of investors
and the public interest.\8\ 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.\9\
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\6\ 15 U.S.C. 78s(b)(3)(A)
\7\ 17 CFR 240.19b-4(f)(6).
\8\ As required by Rule 19b-4(f)(6)(iii), the Exchange gave the
Commission written notice of its intent to file the proposed rule
change, along with a description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change.
\9\ 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-00-45 and
should be submitted by September 19, 2000.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-21962 Filed 8-28-00; 8:45 am]
BILLING CODE 8010-01-M