[Federal Register Volume 70, Number 39 (Tuesday, March 1, 2005)]
[Notices]
[Pages 10015-10017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-800]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51239; File No. SR-Phlx-2005-13]


Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to SIG Indices, LLLP

February 22, 2005.
    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 February 16, 2005, 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 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 it effective upon filing with the Commission. 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).
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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 Phlx Rule 1104A, SIG Indices, LLLP 
Indexes, to add five new SIG indices licensed by Susquehanna Indices, 
LLLP (``SI'') to the Exchange. Phlx Rule 1104A provides generally that 
SI makes no express or implied warranty as to results to be obtained by 
any person or entity from the use of any of the SIG indexes, and makes 
no express or implied warranties of merchantability or fitness for a 
particular purpose with respect to any of the named indexes.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are in [brackets].
* * * * *
Rule 1104A. SIG Indices, LLLP [Indexes]
    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, the SIG Cable, Media & 
Entertainment IndexTM, the SIG Casino Gaming 
IndexTM, the SIG Semiconductor Equipment IndexTM, 
[and ]the SIG Semiconductor Device IndexTM, the SIG 
Specialty Retail IndexTM, the SIG Steel Producers 
IndexTM, the SIG Footwear & Athletic IndexTM, the 
SIG Education IndexTM, and the SIG Restaurant 
IndexTM or any data included therein in connection with the 
trading of option contracts thereon, or for any other use. 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, the SIG Cable, Media & 
Entertainment IndexTM, the SIG Casino Gaming 
IndexTM, the SIG Semiconductor Equipment IndexTM, 
[and ]the SIG Semiconductor Device IndexTM, the SIG 
Specialty Retail IndexTM, the SIG Steel Producers 
IndexTM, the SIG Footwear & Athletic IndexTM, the 
SIG Education IndexTM, and the SIG Restaurant 
IndexTM 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

[[Page 10016]]

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 Phlx Rule 
1104A, which applies to indexes maintained by SIG Indices, LLLP, to 
include five indexes recently licensed by SI to the Exchange.\5\
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    \5\ The Exchange currently lists options on the SIG Investment 
Managers IndexTM, the SIG Cable, Media & Entertainment 
IndexTM, the SIG Casino Gaming IndexTM, the 
SIG Semiconductor Equipment IndexTM, the SIG 
Semiconductor Device IndexTM, and on newly-licensed 
indexes--the SIG Steel Producers IndexTM, the SIG 
Specialty Retail IndexTM, the SIG Footwear & Athletic 
IndexTM, the SIG Education IndexTM, and the 
SIG Restaurant IndexTM, pursuant to a license agreement 
with Susquehanna Indices, LLLP and Exchange Rule 1009A(b). The 
indexes are trademarks of SIG Indices, LLLP.
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    The rule currently provides generally that SI makes no warranty, 
express or implied, as to results to be obtained by any person or 
entity from the use of the SIG Investment Managers IndexTM, 
the SIG Cable, Media & Entertainment IndexTM, the SIG Casino 
Gaming IndexTM, the SIG Semiconductor Equipment 
IndexTM, and the SIG Semiconductor Device 
IndexTM, and that SI makes no express or implied warranties 
of merchantability or fitness for a particular purpose for use with 
respect to any of the named indexes or any data included therein.\6\ 
The Exchange is now proposing to amend Phlx Rule 1104A to expand the 
coverage of the rule to include the five newly-licensed and listed 
indexes--the SIG Specialty Retail IndexTM, the SIG Steel 
Producers IndexTM, the SIG Footwear & Athletic 
IndexTM, the SIG Education IndexTM, and the SIG 
Restaurant IndexTM--as required by the license agreement 
issued to the Exchange.\7\
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    \6\ The Exchange noted in its filing to adopt Phlx Rule 1104A 
that the proposed disclaimer was appropriate given that it was 
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). The Exchange 
recently amended Phlx Rule 1104A to include the SIG Casino Gaming 
IndexTM, the SIG Semiconductor Equipment 
IndexTM, and the SIG Semiconductor Device 
IndexTM, as required by the license agreement between SI 
and the Exchange. See Securities Exchange Act Release No. 50333 
(September 9, 2004), 69 FR 55860 (September 16, 2004)(SR-Phlx-2004-
48).
    \7\ The SIG Specialty Retail IndexTM, the SIG 
Footwear & Athletic IndexTM, the SIG Education 
IndexTM, and the SIG Restaurant IndexTM were 
listed pursuant to Rule 19b-4(e) under the Act on January 5, 2005, 
and the SIG Steel Producers IndexTM was listed on 
December 21, 2004 (amended January 13, 2005).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of section 
6(b)(5) of the Act \9\ 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 Indices so that options on them may be 
traded on the Exchange, thereby providing investors with enhanced 
investment opportunities.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 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

    Written comments on the proposed rule change were neither solicited 
nor received.

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

    The proposed rule change has been designated by the Phlx as a 
``non-controversial'' rule change pursuant to Section 19(b)(3)(A) of 
the Act \10\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    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) by its terms does not become 
operative for 30 days after the date of this filing, or such shorter 
time as the Commission may designate, if consistent with the protection 
of investors and the public interest. 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.\12\ Consequently, the proposed rule 
change has become effective pursuant to section 19(b)(3)(A) of the Act 
\13\ and Rule 19b-4(f)(6) thereunder.\14\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
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    Pursuant to Rule 19b-4(f)(6)(iii),\15\ a proposed ``non-
controversial'' rule change does not become operative for 30 days after 
the date of filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest. The Phlx has requested that the Commission waive the 30-day 
operative delay. The Commission has determined that it would be 
consistent with the protection of investors and the public interest to 
waive the 30-day period so that all SIG indices are treated 
uniformly.\16\
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    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For the purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the 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.

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 No. SR-Phlx-2005-13 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 No. SR-Phlx-2005-13. This file 
number

[[Page 10017]]

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 Room, 450 Fifth Street, NW., Washington, 
DC 20549. Copies of such filing will also 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 No. SR-Phlx-2005-13 and should be submitted on or 
before March 21, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-800 Filed 2-28-05; 8:45 am]
BILLING CODE 8010-01-P