Document ID: SEC-2005-0100-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Philadelphia Stock Exchange, Inc.
Posted Date: 2005-10-12T04:00Z

[Federal Register: October 12, 2005 (Volume 70, Number 196)]
[Notices]               
[Page 59386-59388]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc05-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52565; File No. SR-Phlx-2005-53]

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

October 5, 2005.
    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 September 15, 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 
Phlx filed Amendment No. 1 to the proposed rule change on September 30, 
2005.\3\ The Exchange has filed the proposal as a ``non-controversial'' 
rule change pursuant to section 19(b)(3)(A) of the Act \4\ and Rule 
19b-4(f)(6) thereunder,\5\ which renders the proposal 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\ See Form 19b-4 dated September 30, 2005 (``Amendment No. 
1''). Amendment No. 1 clarified that the Exchange listed options on 
the SIG Oil Exploration and Product Index on or about July 13, 2005. 
In addition, in a telephone call on October 3, 2005, between Juri 
Trypupenko, Phlx, and Sonia Trocchio, Special Counsel, Division of 
Market Regulation, Commission, Mr. Trypupenko indicated that the 
comma after the words ``SIG Restaurant Index\TM\'' was not 
underlined in its original filing.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 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 (Susquehanna Indices, 
LLLP) to add a new index that was licensed by Susquehanna Indices, LLLP 
(``SI'') to the Exchange.

[[Page 59387]]

    The text of the proposed rule change is set forth below. New 
language is italicized; deletions are in brackets.

Rule 1104A SIG Indices, LLLP

    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 Index\TM\, the SIG Cable, Media & Entertainment 
Index\TM\, the SIG Casino Gaming Index\TM\, the SIG Semiconductor 
Equipment Index\TM\, the SIG Semiconductor Device Index\TM\, the SIG 
Specialty Retail Index\TM\, the SIG Steel Producers Index\TM\, the SIG 
Footwear & Athletic Index\TM\, the SIG Education Index\TM\, the SIG 
Restaurant Index\TM\, [and] the SIG Coal Producers Index\TM\, and the 
SIG Oil Exploration and Production 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 Index\TM\, the SIG Cable, Media 
& Entertainment Index\TM\, the SIG Casino Gaming Index\TM\, the SIG 
Semiconductor Equipment Index\TM\, the SIG Semiconductor Device 
Index\TM\, the SIG Specialty Retail Index\TM\, the SIG Steel Producers 
Index\TM\, the SIG Footwear & Athletic Index\TM\, the SIG Education 
Index\TM\, the SIG Restaurant Index\TM\, [and] the SIG Coal Producers 
Index\TM\, and the SIG Oil Exploration and Production IndexTM or any 
data included therein.
* * * * *

I. 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 Phlx 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 SI, to include a new 
index recently licensed by SI to the Exchange.\6\
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    \6\ The Exchange currently lists options on the SIG Investment 
Managers Index\TM\, the SIG Cable, Media & Entertainment Index\TM\, 
the SIG Casino Gaming Index\TM\, the SIG Semiconductor Equipment 
Index\TM\, the SIG Semiconductor Device Index\TM\, the SIG Specialty 
Retail Index\TM\, the SIG Steel Producers Index\TM\, the SIG 
Footwear & Athletic Index\TM\, the SIG Education Index\TM\, the SIG 
Restaurant Index\TM\, and the SIG Coal Producers Index\TM\, pursuant 
to a license agreement with SI and Exchange Rule 1009A(b). The 
indexes are trademarks of SI.
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    Phlx Rule 1104A 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 Index\TM\, the SIG 
Cable, Media & Entertainment Index\TM\, the SIG Casino Gaming 
Index\TM\, the SIG Semiconductor Equipment Index\TM\, the SIG 
Semiconductor Device Index\TM\, the SIG Specialty Retail Index\TM\, the 
SIG Steel Producers Index\TM\, the SIG Footwear & Athletic Index\TM\, 
the SIG Education Index\TM\, the SIG Restaurant Index\TM\, and the SIG 
Coal Producers Index\TM\, 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.\7\ The Exchange is now proposing to amend Rule 1104A to expand 
the coverage of the rule to include the newly-licensed SIG Oil 
Exploration and Production Index\TM\.\8\
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    \7\ The Exchange noted in its filing to adopt 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 Rule 1104A to include the SIG Coal Producers 
Index\TM\, as required by the license agreement between SI and the 
Exchange. See Securities Exchange Act Release No. 51664 (May 6, 
2005), 70 FR 25641 (May 13, 2005)(SR-Phlx-2005-24).
    \8\ Options on the SIG Oil Exploration and Production Index\TM\ 
were listed pursuant to Section 19b-4(e) of the Act on or about July 
13, 2005. See Amendment No. 1, supra note 3.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \9\ in general, and furthers the objectives of section 
6(b)(5) of the Act \10\ 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 Exchange believes that the proposed rule change 
disclaiming warranties as to results or merchantability or fitness for 
a particular purpose 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 10 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 proposed rule change is being designated by the Exchange as a 
``non-controversial'' rule pursuant to section 19(b)(3)(A) of the Act 
\11\ and subparagraph (f)(6) of Rule 19b-4 thereunder,\12\ because the 
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; and (3) does not become operative 
for thirty 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, provided that the Exchange has 
given the Commission written notice of its intent to file the proposed 
rule change at least five business days prior to the filing of the 
proposed rule change.\13\ 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.\14\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ As required under Rule 19b-4(f)(6)(iii), the Exchange has 
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 of this proposal.
    \14\ For purposes of calculating the 60-day abrogation date, the 
Commission considers the 60-day period to have commenced on 
September 30, 2005, the date Phlx filed Amendment No. 1.
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    The Exchange requests that the Commission waive the operative 
delay. The Commission has determined that it is consistent with the 
protection of

[[Page 59388]]

investors and the public interest to waive the 30-day operative delay 
because accelerating the operative date will help to ensure that all 
options traded on SIG indices are treated uniformly.\15\
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    \15\ For purposes only of accelerating the 30-day operative 
period for 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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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 rule-comments@sec.gov. Please include 

File Number SR-Phlx-2005-53 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-Phlx-2005-53. 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 Room. Copies of the 
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-2005-53 and should be submitted on or before 
November 2, 2005.

    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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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E5-5584 Filed 10-11-05; 8:45 am]

BILLING CODE 8010-01-P