[Federal Register Volume 68, Number 107 (Wednesday, June 4, 2003)]
[Notices]
[Pages 33555-33556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13936]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47937; File No. SR-Phlx-2003-21]


Self-Regulatory Organizations; Notice of Filing of a Proposed 
Rule Change and Amendment No. 1 Thereto by the Philadelphia Stock 
Exchange, Inc. Relating to a Disclaimer by Susquehanna Indices, LLP

May 28, 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 April 2, 2003, the Philadelphia Stock Exchange, Inc. (``Phlx'' 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 Phlx. On May 23, 
2003, the Phlx submitted Amendment No. 1 to the proposed rule 
change.\3\ 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.
    \3\ See letter from Carla Behnfeldt, Director, Legal Department 
New Product Development Group, Phlx, to Lisa N. Jones, Attorney, 
Division of Market Regulation, Commission, dated May 22, 2003 
(``Amendment No. 1''). Amendment No. 1: (1) Clarifies in the 
proposed rule text that the proposed disclaimer specifically applies 
to the SIG Investment Managers Index; and (2) provides more detail 
on the Susquehanna Indices, LLP disclaimer in the purpose section of 
the proposal.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposes to adopt new Rule 1104A, Susquehanna Indices, LLP 
Indexes, to provide a disclaimer with regards to SIG Investment 
Managers Index TM (``Index''). Below is the text of the 
proposed rule change. Proposed new language is italicized.
* * * * *
    Susquehanna Indices, LLP Indexes
    Rule 1104A. Susquehanna Indices, LLP makes no warranty, express or 
implied, as to results to be obtained by any person or any entity from 
the use of the SIG Investment Managers Index or any data included 
therein in connection with the trading of option contracts thereon, or 
for any other use. Susquehanna Indices, LLP makes no express or implied 
warranties of merchantability or fitness for a particular purpose for 
use with respect to the SIG Investment Managers Index or any data 
included therein.
* * * * *

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 Phlx 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 Phlx 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
    The Phlx is proposing to adopt new Phlx Rule 1104A, which applies 
to the Index developed and maintained by Susquehanna Indices, LLP 
(``SI'').\4\ The Index is a modified capitalization-weighted index that 
reflects the performance of 19 publicly traded investment management 
companies. The composition of the Index includes managers of mutual 
funds; trust banks, and broker-dealers with substantial asset 
management components. According to the Phlx, SI selects component 
securities for the Index, and is also responsible for all necessary 
maintenance of the Index. The Phlx currently lists options on the Index 
pursuant to a license agreement with SI and Phlx Rule 1009A(b).\5\
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    \4\ SIG Investment Managers IndexTM is a trademark of 
Susquehanna Indices, LLP.
    \5\ On June 3, 1994, the Commission approved a Phlx proposed 
rule change adopting Phlx Rule 1009A(b) in accordance with the 
Generic Index Option Approval Order for the listing and trading of 
narrow-based index options. Under Rule 1009A(b), the Exchange may 
trade options on a narrow-based index without filing a proposed rule 
change under Section 19(b)(2) of the Act if certain conditions are 
satisfied.
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    The Exchange is filing this proposed rule change pursuant a 
requirement in the license agreement. Proposed Rule 1104A would provide 
that SI makes no warranty, express or implied, as to results to be 
obtained by any person or entity from the use of the Index and that SI 
makes no express or implied warranties of merchantability or fitness 
for a particular purpose for use with respect to the Index or any data 
included therein. The Exchange believes that the disclaimer proposed in 
Rule 1104A is appropriate given that it is similar to disclaimer 
provisions of American Stock Exchange LLC (``Amex'') Rule 902C relating 
to index options listed on the Amex.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \6\ in general, and furthers the objectives of section 
6(b)(5) of the Act \7\ in particular, in that it is designed to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
The Exchange believes that the proposed rule should encourage SI to 
develop and maintain stock indexes that may qualify for options trading 
on the Exchange, thereby providing investors with new investment 
opportunities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 
result in 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, or Others

    No written comments were either solicited or received.

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes

[[Page 33556]]

its reasons for so finding or (ii) as to which the Exchange consents, 
the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 Phlx. All submissions should refer to File No. 
SR-Phlx-2003-21 and should be submitted by June 25, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-13936 Filed 6-3-03; 8:45 am]
BILLING CODE 8010-01-P