[Federal Register Volume 64, Number 127 (Friday, July 2, 1999)]
[Notices]
[Pages 36057-36058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16869]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41562; File No. SR-Amex-99-22]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by the American Stock Exchange
LLC Relating to Rule 1006
June 25, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 22, 1999, the
American Stock Exchange LLC (``Amex'' or ``Exchange'') filed with the
Securities and Exchange Commission the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the self-regulatory organization. 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).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to amend Rule 1006 which governs disclaimers
of liability relating to the Nasdaq-100 Index. Below is the
text of the proposed rule change. Proposed new language is italicized;
proposed deletions are in [brackets].
Nasdaq-100 Index
Rule 1006. The Nasdaq Stock Market, Inc. (``Nasdaq'') has licensed
the use of the Nasdaq-100 Index for certain purposes in
connection with trading in a particular series of Portfolio Depositary
Receipts on the Exchange. Nasdaq and its affiliates [does] do not
guarantee the accuracy and/or completeness of the Nasdaq-100
Index or any data included therein. Nasdaq [and], the
Exchange and their affiliates make no warranty, express or implied, as
to results to be obtained by any person or entity from the use of the
Nasdaq-100 Index or any data included therein in connection with the
rights licensed or for any other use. Nasdaq [and], the Exchange and
their affiliates make no express or implied warranties, and disclaim
all warranties of merchantability or fitness for a particular purpose
with respect to the Nasdaq-100 Index or any data included therein.
Without limiting any of the foregoing, in no event shall Nasdaq [and],
the Exchange and their affiliates have any liability for any lost
profits or special, punitive, incidental, indirect, or consequential
damages, even if notified of the possibility of such damages. In
addition, Nasdaq [and], the Exchange and their affiliates shall have no
liability for any damages, claims, losses or expenses caused by any
errors or delays in calculating or disseminating the Nasdaq-100 Index.
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 self-regulatory organization
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 self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On February 26, 1999,\2\ the Commission approved the listing and
trading under Amex Rules 1000 et seq. of Nasdaq-100
Shares,SM units of beneficial interest in the Nasdaq-100
Index Trust, Series 1, a unit investment trust based on the
Nasdaq-100 Index. The Commission also approved in the
Nasdaq-100 Shares Order Amex Rule 1006, which provides for disclaimers
of liability with respect to the Nasdaq-100 by the Nasdaq
and the Exchange in connection with the trading of Nasdaq-100 Shares.
This provision is similar to other Exchange rules relating to
disclaimers of liability with respect to Portfolio Depositary Receipts
(e.g., Amex Rule 1004 (S&P 500 Index) and Amex Rule 1005 (Dow Jones
Indexes) as well as index options (e.g., Amex Rule 902C). The Exchange
is amending Amex Rule 1006 to state that the disclaimers of liability,
specified in the rule, extend to affiliates of Nasdaq and the Exchange.
The Exchange believes that such an amendment is appropriate to clarify
and make explicit that the disclaimers of liability specified in Amex
Rule 1006 also apply to affiliates of Nasdaq and Amex, which include
the National Association of Securities Dealers, Inc. and NASD
Regulation, Inc.
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\2\ Securities Exchange Act Release No. 41119 (February 26,
1999), 64 FR 11510 (March 9, 1999) (``Nasdaq-100 Shares Order'').
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\3\ in general and furthers the objectives of Section 6(b)(5) \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, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
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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 Exchange does not believe that the proposed rule change will
impose
[[Page 36058]]
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
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
(3) does not become operative for 30 days from June 22, 1999, the date
on which it is filed, and because the Exchange provided the Commission
with written notice of its intent to file the proposed rule change at
least five business days prior to the filing date, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\5\ 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 the furtherance of the purposes of the Act.\6\
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\5\ 17 CFR 240.19b-4(f)(6) (1999).
\6\ 15 U.S.C. 78s(b)(3)(C).
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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. 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 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 Room. Copies of such filing will also be available
for inspection and copying at the principal office of the Amex. All
submissions should refer to the File No. SR-Amex-99-22 and should be
submitted by July 23, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-16869 Filed 7-1-99; 8:45 am]
BILLING CODE 8010-01-M
