[Federal Register Volume 68, Number 10 (Wednesday, January 15, 2003)]
[Notices]
[Pages 2092-2093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-845]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47139; File No. SR-Amex-2002-109]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of a Proposed Rule Change by the American 
Stock Exchange LLC Relating to Dow Jones & Company Liability Disclaimer

January 8, 2003.
    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 December 18, 2002, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``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, as amended, 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 amend Rule 902 to include the Dow Jones & 
Company, Inc. in the disclaimer provisions of the Rule. 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 III 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
    Dow Jones & Company, Inc. compiles, calculates and maintains stock 
indexes in which it owns ``intellectual property'' rights such as 
trademark, copyright, and proprietary rights. As a condition of a 
license agreement between the Exchange and Dow Jones & Company, Inc. in 
connection with the trading of options on certain exchange traded 
funds, the Amex is required to adopt, and maintain as part of its 
rules, a disclaimer, limiting the liability of Dow Jones with respect 
to the dissemination and calculation of its indexes. During the last 
couple of years, Dow Jones has entered into license agreements with 
State Street Bank and Trust Company (``SSGA''), and Barclays Global 
Investors, NA (``BGI'') to use its intellectual property rights in 
various indexes in connection with the issuance, marketing and 
promotion of certain exchange-traded open-end funds (the ``SSGA ETFs'' 
and the ``BGI ETFs''). The Exchange is now entering into a license 
agreement with Dow Jones to use the same indexes to trade Options 
Clearing Corporation issued options on the SSGA ETFs and the BGI ETFs.
    The proposed disclaimer is similar in content to disclaimers 
currently in place for Standard & Poors Corporation and Morgan Stanley 
& Co., Incorporated in connection with other ETFs and index options. 
The proposed disclaimer states that Dow Jones does not guarantee the 
accuracy or completeness of its indexes, makes no express or implied 
warranties with respect to the indexes and shall have no liability for 
damages, claims, losses or expenses caused by errors in calculating or 
disseminating the indexes.
2. Statutory Basis
    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 foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
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    \3\ 15 U.S.C. 78s(b).
    \4\ 15 U.S.C. 78s(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.

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. 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. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Amex. All submissions should refer to File No. SR-Amex-2002-109 and 
should be submitted by February 5, 2003.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \5\ and, in 
particular, the requirements of section 6 of the Act.\6\ The proposed 
liability disclaimer provision is similar to other liability 
disclaimers, including one related to portfolio depositary receipts in 
Amex Rule 1004 and others related to index options in Amex Rule 902C.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule change's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78s.
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    The Amex has requested that the proposed rule change be given 
accelerated approval pursuant to the section 19(b)(2) of the Act.\7\ 
Since the proposed liability disclaimer is substantially similar to 
other liability disclaimers, the proposed disclaimer

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raises no new regulatory issues. Accordingly, the Commission finds good 
cause, consistent with section 19(b)(2) of the Act,\8\ to approve the 
proposed rule change prior to the thirtieth day after the date of 
publication of the notice of filing thereof in the Federal Register.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ Id.
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-Amex-2002-109) be, and hereby 
is, approved.
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    \9\ Id.

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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-845 Filed 1-14-03; 8:45 am]
BILLING CODE 8010-01-P