[Federal Register Volume 69, Number 179 (Thursday, September 16, 2004)]
[Notices]
[Pages 55860-55861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2201]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50333; File No. SR-Phlx-2004-48]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
and Amendment No. 1 Thereto Relating to SIG Indices, LLLP Disclaimer

September 9, 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 July 28, 2004, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
items I and II below, which Items have been prepared by the Phlx. The 
Exchange has filed the proposal as a ``non-controversial'' rule change 
pursuant to section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. On August 19, 2004, the Exchange filed Amendment No. 1 
to the proposed rule change.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ See Letter from Carla Behnfeldt, Director, Phlx to Mia Zur, 
Attorney, Division of Market Regulation (``Division''), Commission, 
dated August 18, 2004 (``Amendment No. 1''). In Amendment No. 1, the 
Phlx replace the original proposed rule change in its entirety.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Phlx proposed to amend Rule 1104A, Susquehanna Indices, LLP 
Indexes, to provide the name change and expand the coverage of the 
rule. Below is the proposed rule change. Proposed new language is 
italicized. Proposed deletions are in [brackets].\6\
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    \6\ The Exchange requested that the staff of the Division 
correct a minor error in the proposed rule text. Telephone 
discussion between Carla Behnfeldt, Director, Phlx and Mia Zur, 
Attorney, Division, Commission (August 25, 2004).
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* * * * *
Rule 1104A. [Susquehanna] SIG Indices, LLLP Indexes
    [Susquehanna] SIG Indices, LLLP 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 IndexTM, [or] the SIG Cable, 
Media & Entertainment IndexTM, the SIG Casino Gaming IndexTM, the SIG 
Semiconductor Equipment IndexTM, and the SIG Semiconductor Device 
IndexTM, or any data included therein in connection with the 
trading of option contracts thereon, or for any other use. 
[Susquehanna] SIG Indices, LLLP makes no express or implied warranties 
of merchantability or fitness for a particular purpose for use with 
respect to the SIG Investment Managers IndexTM, [or] the SIG Cable, 
Media & Entertainment IndexTM, the SIG Casino Gaming 
IndexTM, the SIG Semiconductor Equipment IndexTM,  and the 
SIG Semiconductor Device Index TM, 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 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 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 \7\
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    \7\ The Phlx requested that the staff of the Division make minor 
non-substantive modifications to language in the purpose section. 
Telephone discussion between Carla Behnfeldt, Director, Phlx and Mia 
Zur, Attorney, Division, Commission (August 25, 2004).
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    The purpose of the proposed rule change is to amend Phlx Rule 1104A 
which applies to indexes maintained by SIG Indices, LLLP (formerly 
known as ``Susquehanna Indices, LLLP'').\8\ The

[[Page 55861]]

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.\9\ The Exchange is 
now proposing to amend Phlx Rule 1104A to update the rule to reflect 
the name change and to expand the coverage of the rule to include the 
SIG Casino Gaming IndexTM, the SIG Semiconductor Equipment 
IndexTM, and the SIG Semiconductor Device IndexTM 
which are new indexes upon which options have recently been listed on 
the Exchange.
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    \8\ The Exchange currently lists options on the SIG Investment 
Managers IndexTM and the SIG Cable, Media & Entertainment 
IndexTM pursuant to a license agreement with SIG Indices, 
LLLP and Exchange Rule 1009A(b). The Exchange recently amended 
Exchange Rule 1104A to cover the SIG Cable, Media & Entertainment 
IndexTM pursuant to a requirement in the license 
agreement. See Securities Exchange Act Release No. 49605 (April 22, 
2004), 69 FR 24209 (May 3, 2004). The Exchange is filing the current 
proposed rule change pursuant to a requirement in the license 
agreement. SIG Investment Managers IndexTM, SIG Cable, 
Media & Entertainment IndexTM, SIG Casino Gaming 
IndexTM, SIG Semiconductor Equipment IndexTM, 
and SIG Semiconductor Device IndexTM are trademarks of SIG Indices, 
LLLP.
    \9\ The Exchange noted in its filing to adopt Exchange Rule 
1104A that it believed that the disclaimer proposed in Exchange 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 
Release No. 48135 (July 7, 2003), 68 FR 42154 (July 16, 2003) 
(approving SR-Phlx-2003-21).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirement under section 6(b) of the Act\10\ in general, and furthers 
the objectives of section 6(b)(5) of the Act \11\ 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 continue to maintain the SIG Casino Gaming 
IndexTM, the SIG Semiconductor Equipment IndexTM, 
and the SIG Semiconductor Device IndexTM so that options on 
them may be traded on the Exchange, thereby providing investors with 
enhanced investment opportunities.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 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

    The Phlx has filed the proposed rule change pursuant to section 
19(b)(3)(A) of the Act \12\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\13\ Because the foregoing rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) does not become operative for 30 days from the date on which it 
was filed, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest, 
the proposed rule change has become effective pursuant to section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder. As required 
under Rule 19b-4(f)(6)(iii), the Phlx provided the Commission with 
written notice of its intent to file the proposed rule change at least 
five business days prior to filing the proposal with the Commission or 
such shorter period as designated by the Commission.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(a).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ See supra, note 5.
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.\15\
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    \15\ For purposes of calculating the 60-day abrogation period, 
the Commission considers the proposal to have been filed on August 
19, 2004, the date the Phlx filed Amendment No. 1.
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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-2004-48 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609. All submissions should refer to File Number 
SR-Phlx-2004-48. 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-2004-48 and should be submitted on or before 
October 7, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-2201 Filed 9-15-04; 8:45 am]
BILLING CODE 8010-01-P