[Federal Register Volume 68, Number 160 (Tuesday, August 19, 2003)]
[Notices]
[Pages 49825-49826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21174]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48319; File No. SR-Amex-2003-54]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the American Stock Exchange LLC Relating to Limitation of 
Liability under the Options Intermarket Linkage

August 12, 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 May 30, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') submitted to 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 Amex. 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 Exchange proposes to add Amex Rule 945 for the purpose of 
limiting liability for the Options Clearing Corporation (``OCC'') with 
respect to members' use of the Options Intermarket Linkage (the 
``Linkage'').
    The text of the proposed rule change is below. Proposed additions 
are in italics.
* * * * *


Rule 945.  Liability for the Options Intermarket Linkage

    Rule 945. (a) The Linkage as used to send orders and other 
information to or from the Exchange is a facility or service afforded 
by the Exchange for purposes of Article IV, Section 1(e) of the Amex 
Constitution. It is the responsibility of each member, member 
organization or associated person of such member or member organization 
to verify the accuracy of transactions sent and received through the 
Linkage.
    (b) The Options Clearing Corporation, its affiliates, officers, 
directors, shareholders, agents and employees (collectively, ``OCC'') 
shall not be liable to members, member organizations or associated 
persons of members or member organizations for any loss, damage, claim 
or expense arising out of the use, non-use, or inability to use the 
Linkage, including without limitation the content of orders, trades or 
other business facilitated through the Linkage, the truth or accuracy 
of the content of messages or other information transmitted through the 
Linkage, the delays in transmission of orders, trades or otherwise.
* * * * *

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 Amex included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it had 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to add a new rule, Amex Rule 945, for the 
purpose of limiting the liability of OCC with respect to member and 
member organization use of the Linkage. Proposed Amex Rule 945(a) 
provides that the Linkage, as used to send orders and option 
information to or from the Exchange, is a facility or service afforded 
by the Exchange for purposes of Article IV, Section 1(e) of the Amex 
Constitution. In addition, the proposed Amex Rule 945(b) provides that 
OCC will have no liability to members of the Exchange or to persons 
associated with such members with respect to the use, non-use or 
inability to use the Linkage, including without limitation, the content 
of orders, trades or other business facilitated through the Linkage, 
the truth or accuracy of the content of messages or other information 
transmitted through the Linkage or otherwise.
2. Statutory Basis
    The Amex believes that its proposal is consistent with Section 6(b) 
of the Act \3\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \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, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, to protect investors and the 
public interest and is not designed to permit unfair discrimination 
between customers, issuers, brokers, or 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 Amex 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

    The Amex neither solicited nor received written comments concerning 
the proposed rule change.

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

    Within 35 days of the date of 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 its reasons for so finding, or (ii) as to 
which the Amex 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 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

[[Page 49826]]

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 filings will also be available for 
inspection and copying at the principal office of the Amex.
    All submissions should refer to File No. SR-Amex-2003-54 and should 
be submitted by September 9, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-21174 Filed 8-18-03; 8:45 am]
BILLING CODE 8010-01-P