[Federal Register Volume 68, Number 192 (Friday, October 3, 2003)]
[Notices]
[Pages 57493-57494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25117]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48555; File No. SR-Amex-2003-54]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the American Stock Exchange LLC Relating to the Limitation of 
Liability of the Options Clearing Corporation to Exchange Members

September 29, 2003.
    On May 30, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to establish Amex Rule 945. This Rule would 
provide that the Options Clearing Corporation (``OCC'') would have no 
liability to Amex members, with respect to the use, non-use, or 
inability to use the Options Intermarket Linkage (``Linkage''), and 
that Linkage is a facility or service afforded by the Exchange for the 
purposes of Article IV, Section 1(e) of the Amex Constitution. The 
proposed rule change was published for comment in the Federal Register 
on August 19, 2003.\3\ The Commission received no comments on the 
proposed rule change. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 48319 (August 12, 2003), 
68 FR 49825.
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    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 \4\ and, in 
particular, the requirements of Section 6(b) of the Act \5\ and the 
rules and regulations thereunder. The Commission finds that the rule 
change is consistent with Section 6(b)(5) of the Act,\6\ which 
requires, among other things, that the rules of the Exchange be 
designed to foster cooperation and coordination with persons engaged in 
regulation, 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.
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    \4\ In approving this proposed rule change the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission notes that the Amex, along with the other exchanges 
that are Participants in the Linkage Plan, entered into an agreement 
with the OCC, which operates the central core or ``hub'' to and from 
which all Linkage orders are routed.\7\ In the Agreement, the Amex 
committed to file a proposed rule change with the Commission that would 
limit the liability of the OCC to Amex members.
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    \7\ Linkage Project and Facilities Management Agreement (``the 
Agreement'') (January 30, 2003).
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    The Commission believes that this proposed rule change should 
foster cooperation and promote a relationship between the Amex and the 
OCC that is conducive to the effective operation of the Linkage. 
Further, the Commission believes that the Amex's proposal to 
characterize the Linkage as a facility or service of the Exchange for 
the purposes

[[Page 57494]]

of Article IV, Section 1(e) of the Amex Constitution is reasonable.
    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-Amex-2003-54) be, 
and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-25117 Filed 10-2-03; 8:45 am]
BILLING CODE 8010-01-P