[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]



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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