[Federal Register Volume 69, Number 85 (Monday, May 3, 2004)]
[Notices]
[Pages 24209-24210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9979]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49605; File No. SR-Phlx-2004-22]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc. Relating to Susquehanna 
Indices, LLP Disclaimer

April 22, 2004.
    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 March 22, 2004, 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 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 Phlx proposes to amend Exchange Rule 1104A, Susquehanna 
Indices, LLP Indexes.\3\ The text of the proposed rule change is set 
forth below. Additions are italicized.
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    \3\ The Commission notes that it approved Phlx Rule 1104A on 
July 7, 2003. See Securities Exchange Act Release No. 48135 (July 7, 
2003), 68 FR 42154 (July 16, 2003) (approving SR-Phlx-2003-21).
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* * * * *

Rule 1104A. Susquehanna Indices, LLP Indexes

    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 the SIG Cable, Media & 
Entertainment 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 the SIG Cable, Media & Entertainment Index 
or any data included therein.
* * * * *

[[Page 24210]]

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 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
    The purpose of the proposed rule change is to amend Exchange Rule 
1104A which applies to indexes maintained by Susquehanna Indices, 
LLP.\4\ The rule currently provides generally that Susquehanna Indices, 
LLP (``SI'') makes no warranty, express or implied, as to results to be 
obtained by any person or entity from the use of SIG Investment 
Managers Index and that SI makes no express or implied warranties of 
merchantability or fitness for a particular purpose for use with 
respect to that index or any data included therein.\5\ The Exchange is 
now proposing to amend Exchange Rule 1104A to expand the coverage of 
the rule to include the SIG Cable, Media & Entertainment Index, a new 
index upon which options have recently been listed on the Exchange.\6\
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    \4\ The Exchange currently lists options on the SIG Investment 
Managers Index and the SIG Cable, Media & Entertainment Index 
pursuant to a license agreement with Susquehanna Indices, LLP and 
Exchange Rule 1009A(b). The Exchange is filing this proposed rule 
change pursuant to a requirement in the license agreement. SIG 
Investment Managers Index and SIG Cable, Media & Entertainment Index 
are trademarks of Susquehanna Indices, LLP.
    \5\ The Exchange noted in its filing to adopt Rule 1104A that it 
believed that the disclaimer proposed in Rule 1104A is appropriate 
given that it is similar to disclaimer provisions of American Stock 
Exchange Rule 902C relating to indexes underlying options listed on 
that exchange. See Securities Exchange Act Release No. 48135 (July 
7, 2003), 68 FR 42154 (July 16, 2003) (approving SR-Phlx-2003-21).
    \6\ The Commission notes that the Phlx trades options on this 
index pursuant to the requirements set out in Rule 19b-4(e) and 
filed Form 19b(4)(e) concerning these options on February 18, 2004.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b)\7\ of the Act in general, and Section 6(b)(5)\8\ in particular in 
that it is designed to promote just and equitable principles of trade, 
remove impediments to and perfect the mechanism of a free and open 
market and protect investors and the public interest by amending its 
rules to more closely track the provisions of the Act. The Exchange 
believes that the proposed rule should encourage SI to continue to 
maintain the SIG Cable, Media & Entertainment Index so that options on 
it may be traded on the Exchange, thereby providing investors with 
enhanced investment opportunities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 inappropriate 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 either solicited or received.

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 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 is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic comments:

     Use the Commission's Internet comment form 
(http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please 
include File Number SR-Phlx-2004-22 on the subject line.

Paper comments:

     Send paper comments in triplicate to Jonathan G. 
Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, 
NW., Washington, DC 20549-0609.

All submissions should refer to File Number SR-Phlx-2004-22. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Section, 450 Fifth Street, 
NW., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of the Phlx. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Phlx-2004-22 and should be 
submitted on or before May 24, 2004.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-9979 Filed 4-30-04; 8:45 am]
BILLING CODE 8010-01-P