[Federal Register Volume 66, Number 144 (Thursday, July 26, 2001)]
[Notices]
[Pages 39067-39068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18645]
[[Page 39067]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-44576; File No. SR-Amex-2001-44]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the American Stock Exchange
LLC Relating to the Goldman Sachs Technology Composite Index
July 19, 2001.
Pursuant to section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on
June 29, 2001, the American Stock Exchange LLC (``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 Amex proposes to add Rule 1005A relating to the liability
disclaimer and warranty with respect to the Goldman Sachs Technology
Composite Index and sub-indexes thereof licensed for use in connection
with certain Index Fund Shares traded on the Exchange. The following is
the text of the proposed rule change (all new language):
Rule 1005A. Goldman Sachs Technology Composite Index
The Goldman Sachs Technology Composite Index and its sub-indexes
(the ``Indexes'') are trademarks and trade names of Goldman, Sachs &
Co. (``GS'') that are licensed for use in connection with certain
exchange traded index funds traded on the Exchange (the
``Products''). The Products are not sponsored, endorsed, sold or
promoted by GS, the Exchange or any of their affiliates. GS, the
Exchange and their affiliates do not guarantee the accuracy and/or
completeness of the Indexes, the Products or any data included
therein or the ability of the Indexes or the Products to track the
appropriate index performance. GS, the Exchange and their affiliates
make no express or implied warranties, and disclaim all warranties
of merchantability or fitness for a particular purpose with respect
to the Indexes, the Products or any data included therein.
Without limiting any of the foregoing, in no event shall GS, the
Exchange and their affiliates have any liability for any lost
profits or special, punitive, incidental, indirect, or consequential
damages (including lost profits), even if notified of the
possibility of such damages. In addition, GS, the Exchange and their
affiliates shall have no liability for any damages, claims, losses
or expenses caused by any errors, omissions, interruptions or delays
in calculating or disseminating the Indexes or the prices of the
Products.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Amex 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 Amex 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange currently trades shares of iShares Goldman Sachs
Technology Index Fund based on the Goldman Sachs Technology Composite
Index. The Exchange proposes to add Rule 1005A relating to various
disclaimers of liability and warranties in connection with the trading
in these Index Fund Shares as well as other Index Fund Shares series
that may be based on sub-indexes of the Index. Proposed Rule 1005A
would provide, among other things, that Index and its subindexes
(``Indexes'') are licensed for use in connection with certain Index
Fund Shares traded on the Exchange. Proposed Rule 1005A would provide
that the relevant index funds are not sponsored, endorsed, sold or
promoted vs Goldman, Sachs & Co. (``GS''), the Exchange or any of their
affiliates; and, among other things, would provide certain disclaimers
including with respect to guarantees of the accuracy and/or
completeness of the Indexes or the ability of the Indexes or the
applicable Index Fund Shares to track the appropriate index
performance; warranty of results to be obtained; laibility for lost
profits or damages; or liability with respect to damages, claims,
losses or expenses caused by errors, omissions, interruptions or delays
in calculating or disseminating the Indexes or the prices of the
applicable Index Fund Shares.
The Exchange believes that proposed Rule 1005A is similar to Rules
1004, 1005 and 1006, which provide various disclaimers for Standard &
Poor's, Dow Jones, and Nasdaq Indexes, respectively, in connection with
Portfolio Depositary Receipts (e.g., SPDRs, DIAMONDS
, Nasdaq-100 Index Tracking Stock); and Rule 1004A
which provides disclaimers for Index Fund Shares based on the Fortune
500 Index and the Fortune e-50 TM Index.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
section 6(b) of the Act,\3\ in general, and furthers the objectives of
section 6(b)(5),\4\ in particular, in that it is 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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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory 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. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants and Others
Amex has neither solicited nor received written comments with
respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Because the foregoing rule change (1) does not significantly affect
the protection of investors or the public interest; (2) does not impose
any significant burden on competition; (3) does not become operative
for 30 days from June 29, 2001, the date on which it was filed, and the
Exchange provided the Commission with written notice of its intent to
file the proposed rule change at least five business days prior to the
filing date, it has become effective pursuant to section 19(b)(3)(A) of
the Act \5\ and Rule 19b-4(f)(6) thereunder.\6\ At any time within 60
days of the filing of such proposed rule change, the Commission may
summarily abrogate
[[Page 39068]]
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 furtherance of the purposes of the Act.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)6.
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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, NW., Washington, DC 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 in the
Commission's Public Reference Room in Washington, DC. Copies of such
filing will also be available for inspection and copying at the
principal office of the Amex. All submissions should refer to the file
number in the caption above and should be submitted by August 16, 2001.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-18645 Filed 7-25-01; 8:45 am]
BILLING CODE 8010-01-M