66270 Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3 17 CFR 240.19b–4(e).

4 17 CFR 240.19b–4(e).

5 15 U.S.C. 78f(b).

6 15 U.S.C. 78f(b)(5).

7 In reviewing the proposed rule change, the

Commission considered its potential impact on

efficiency, competition, and capital formation. See

15 U.S.C. 78c(f).

8 15 U.S.C. 78f(b)(5).

9The Commission notes that it has previously

approved a proposed rule change submitted by the

BSE under Exchange Act Rule 19b–4, 17 CFR

240.19b–4(e), that established generic listing

standards for Index Fund Shares that would permit

the trading of, among other things, shares of the

Fortune 500 and FORTUNE e-50 Indexes funds

pursuant to UTP. See Exchange Act Release No. 34–

42988 (June 28, 2000), 65 FR 42021 (July 7, 2000).

10 15 U.S.C. 78S(B)(2).

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43484; File No. SR–BSE–

00–17]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Boston Stock

Exchange, Inc. Relating to Fortune

Indexes

October 26, 2000.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 2 thereunder,

notice is hereby given that on October

12, 2000, the Boston Stock Exchange,

Inc. (‘‘BSE’’ 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 Exchange.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons and to grant accelerated

approval of the proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The BSE intends to trade, via Unlisted

Trading Privileges (‘‘UTP’’), Index Fund

Shares based on the Fortune 500 and

Fortune e-50 Indexes pursuant to Rule

19b–4(e) under the Act.3 Accordingly,

the BSE proposes to amend Chapter

XXIV–B, Index Fund Shares, by adding

Section 6, Fortune Indexes, to set forth

various disclaimers of liability and

warranties in connection with these

Indexes and trading in Index Fund

Shares. The text of the proposed rule

change is available at the principal

office of the BSE and at the

Commission.

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

BSE 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 III 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 BSE intends to trade, via UTP,

Index Fund Shares based on the Fortune

500 and Fortune e-50 Indexes

(‘‘Indexes’’), pursuant to rule 19b–4(e)

under the Act.4 Therefore, the BSE

proposes to amend Chapter XXIV–B,

Index Fund Shares, by adding Section 6,

Fortune Indexes, to set forth various

disclaimers of liability and warranties in

connection with the Indexes and trading

in Index Fund Shares. The proposed

rule would state, among other things,

that the Indexes are licensed for use by

the Exchange in connection with the

Index fund Shares; that the Index Fund

Shares have not been passed on by

Fortune for suitability for a particular

use; and that the Index Fund Shares are

not sponsored, endorsed, sold, or

promoted by Fortune. The proposed

rule would also state that Fortune does

not warranty the accuracy or

completeness of the Indexes or the data

included therein, results to be obtained

from use of the Indexes or such data, or

fitness for a particular use with respect

to the Indexes or such data.

2. Statutory Basis

The BSE believes that the proposed

rule change is consistent with Section

6(b) of the Act 5 in general, and furthers

the objectives of Sections 6(b)(5) 6 in

particular, in that it is designed to

promote just and equitable principles of

trade; 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

BSE also states that the proposed rule

change is not designed to permit unfair

discrimination between customers,

issuers, brokers, and dealers.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The BSE does not believe that the

proposed rule would impose any

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 solicited

or received.

III. 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 U.S.C. 552, will be

available for inspection and copying at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the Exchange. All

submissions should refer to File No.

SR–BSE–00–17 and should be

submitted by November 24, 2000.

IV. Commission’s Findings and Order

Granting Acceleratred Approval of

Proposed Rule Change

A. Generally

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.7 Specifically, the

Commission believes that the proposal

is consistent with section 6(b)(5) of the

Act 8 because it will facilitate

transactions in securities by setting forth

certain disclaimers of liability with

respect to Index Fund Shares based on

the Fortune 500 and Fortune e-50

Indexes that will trade on the

Exchange.9

The BSE has requested that the

Commission find good cause pursuant

to Section 19(b)(2) of the Act 10 for

approving the proposed rule change

Federal Register / Vol. 65, No. 214 / Friday, November 3, 2000 / Notices 66271

11 In its initial submission to the Commission, the

BSE inadvertently requested that the Commission

grant accelerated effectiveness to the proposed rule

change. The BSE has indicated that, instead, it

requested accelerated approval of the proposal.

Telephone conversation between Esther Radovsky,

Listings Analyst, BSE, and Michael Gaw, AttorneyAdviser, Division of Market Regulation,

Commission, on October 24, 2000. 12See, e.g., Exchange Act Release No. 34–41664

(July 27, 1999), 64 FR 42424 (August 4, 1999)

(approval of BSE rule change to, among other

things, adopt certain disclaimers of liability with

respect to Nasdaq–100 Index Fund Shares);

Exchange Act Release NO. 34–41119 (February 26,

1999), 64 FR 11510 (March 9, 2000) (approval of

Amex rule change to, among other things, adopt

certain disclaimers of liability with respect to

Nasdaq–100 Index Fund Shares); Exchange Act

Release No. 34–35534 (March 24, 1995), 60 FR

16686 (March 31, 1995) (approval of Amex rule

change to, among other things, adopt certain

disclaimers of liability with respect to S&P MidCap

400 Index Fund Shares).

13 15 U.S.C. 78s(b)(2).

14 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3 ‘‘streetTRACKS’’ is a registered service mark of

the State Street Corporation. ‘‘Dow Jones Global

Titans Index’’ is a trademark of the Dow Jones &

Co., Inc.

4See Securities Exchange Act Release No. 37589

(August 21, 1996), 61 FR 44370 (August 28, 1996)

(SR–CHX–96–12).

5See Securities Exchange Act Release Nos. 39117

(September 22, 1997), 62 FR 50973 (September 29,

1997) (SR–CHX–96–14) (WEBS); and 40950

(January 15, 1999), 64 FR 3730 (January 25, 1999)

(SR–CHX–98–31) (Select Sector SPDRs). ‘‘WEBBS’’

was a service mark of the Morgan Stanley Group,

Inc. ‘‘iShares’’ is a service mark of the Barclays

Global Investors. ‘‘MSCI Index Fund’’ is a

trademark of the Morgan Stanley Capital

International. ‘‘Select Sector SPDR’’ is a service

mark of The McGraw-Hill Companies, Inc.

6See Securities Exchange Act Release No. 42975

(June 22, 2000), 65 FR 40712 (June 30, 2000) (SR–

CHX–00–14).

7State Street Bank and Trust Company, through

its State Street Global Advisors division, (‘‘State

Street’’) is the adviser to the Trust and responsible

for management of the Fund. State Street is also the

administrator, custodian and transfer agent for the

Fund and may act as a lending agent for the Trust.

State Street Capital Markets, LLC is the distributor

of the Fund’s Shares. The Depository Trust

Company (‘‘DTC’’) acts an securities depositary for

the Shares.

8See Securities Exchange Act Release No. 43338

(September 25, 2000), 65 FR 59235 (October 4,

2000) (SR–Amex–00–53).

prior to the thirtieth day after

publication of the proposal in the

Federal Register.11 The Commission

does not believe that this proposal raises

any new regulatory issues and notes that

the proposed rule change is nearly

identical to others that have been

previously approved by the

Commission.12 Therefore, the

Commission finds that there is good

cause for approving the proposed rule

change prior to the thirtieth day after

publication of the proposal in the

Federal Register.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,13 that the

proposed rule change (SR–BSE–00–17),

is hereby approved on an accelerated

basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–28223 Filed 11–2–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43483; File No. SR–CHX–

00–33]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange; Incorporated

Relating to the Trading of the street

TracksSM Dow Jones Global Titans

Index Fund

October 25, 2000.

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 October

16, 2000, the Chicago Stock Exchange,

Incorporated (‘‘Exchange’’ or ‘‘CHX’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items, I, II, and III below, which Items

have been prepared by the CHX. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The CHX proposes to trade, pursuant

to unlisted trading privileges, shares of

the streetTRACKSSM Dow Jones Global

Titans IndexTM Fund,3 using the

procedures outlines in Rule 19b–4(e) of

the Act.

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

CHX 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 CHX 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

On August 21, 1996, the Commission

approved a new listing standard, Article

XXVIII, Rule 24, which allowed the

Exchange to list and trade Investment

Company Units.4 In general, Investment

Company Units represent an interest in

a registered investment company that

holds securities based on, or

representing an interest in, an index or

portfolio of securities.

Over time, the Commission has

approved amendments to Article

XXVIII, Rule 24, to permit the trading,

pursuant to unlisted trading privileges,

of investment company lists based on

certain Morgan Stanley Capital

International Indices (‘‘WEBSSM,’’ now

called ‘‘iSharesSM MSCI Index Fund

SeriesSM’’) and nine series of Select

Sector SPDRsSM.5

On June 22, 2000, the Commission

approved a proposed rule change that

added a new interpretation to the CHX’s

Investment Company Units listing

standard.6 This new provision permits

the Exchange to list or trade Investment

Company Units udder the expedited

procedures described in Rule 19b–4(e)

under the Act, so long as those

securities meet specific standards. The

Exchange has used these procedures to

trade, pursuant to unlisted trading

privileges, several Investment Company

Units, including series of the iShares

Trust based on domestic stock indices.

Through this filing, the Exchange

proposes to trade, pursuant to unlisted

trading privileges, shares of the

streetTRACKS (‘‘Shares’’) Dow Jones

Global Titans Index Fund (the ‘‘Fund’’).

The Fund is a series of the

streetTRACKS Series Trust (the

‘‘Trust’’), which is an open-end

investment company.7 As described

below, these Investment Company Units

are structurally similar to the

Investment Company Units already

approved for trading on the Exchange.

The Exchange has prepared the

following information about the Fund

based on the streetTRACKS Trust

Prospectus (the ‘‘Prospectus’’) and

Statement of Additional Information

dated September 25, 2000, as well as a

submission by the American Stock

Exchange, LLC (‘‘Amex’’), in which it

sought approval to list and trade these

securities (the ‘‘Amex Submission’’).8

a. The Dow Jones Global Titans Index.

The Dow Jones Global Titans Index (the

‘‘Index’’) is composed of 50 common

stocks, which are chosen by the Dow

Jones and Company (the ‘‘Dow’’). As

described in the Prospectus, a stock