Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Disclaimer of Warranties by Lehman Brothers Inc., 44144-44146 [E5-4077]
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44144
Federal Register / Vol. 70, No. 146 / Monday, August 1, 2005 / Notices
more competition among Exchange
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change, as amended,
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 foregoing proposed rule change,
as amended, has been designated as a
fee change pursuant to Section
19(b)(3)(A)(ii) of the Act 38 and Rule
19b–4(f)(2) 39 thereunder, because it
establishes or changes a due, fee, or
other charge imposed by the Exchange.
Accordingly, the proposal will take
effect upon filing with the Commission.
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.40
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2005–44 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
38 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
40 The effective date of the original proposed rule
change is July 1, 2005, the effective date of
Amendment No. 1 is July 20, 2005, and the effective
date of Amendment No. 2 is July 21, 2005. For
purposes of calculating the 60-day period within
which the Commission may summarily abrogate the
proposal, the Commission considers the period to
commence on July 21, 2005, the date on which the
Exchange submitted Amendment No. 2.
39 17
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Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–Phlx–2005–44. 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 (https://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, as amended,
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 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–2005–44 and should
be submitted on or before August 22,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.41
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4076 Filed 7–29–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52102; File No. SR–Phlx–
2005–38]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to Disclaimer of Warranties by
Lehman Brothers Inc.
July 21, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
PO 00000
41 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00062
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notice is hereby given that on June 14,
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. On July 13,
2005, the Exchange amended the
proposed rule change (‘‘Amendment No.
1’’).3 The Exchange has filed the
proposal 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,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt Phlx
Rule 1106A (Lehman Brothers Inc.
Indexes) to add a disclaimer regarding
data from Lehman Brothers Inc. Indexes
(‘‘Indexes’’),6 express or implied
warranties of merchantability or fitness,
and liability for damages or claims. The
Phlx has designated this proposal as
non-controversial and has requested
that the Commission waive the 30-day
pre-operative waiting period contained
in Rule 19b–4(f)(6)(iii) under the Act.7
The text of the proposed rule change, as
amended, is below. Proposed new
language is italicized.
*
*
*
*
*
Rule 1106A.
Lehman Brothers Inc. Indexes
Lehman Brothers Inc. makes no
warranty, express or implied, as to the
results to be obtained by any person or
entity from the use of any Lehman
Brothers Inc. index, any opening, intraday or closing value therefor, or any
data included therein or relating thereto
in connection with the trading of any
option contract on exchange traded
funds based thereon, or for any other
purpose. Lehman Brothers Inc. does not
guarantee the accuracy and/or
completeness of any Lehman Brothers
Inc. index, or any opening, intra-day or
closing value therefor, or any data
included therein or related thereto.
Lehman Brothers Inc. makes no express
or implied warranties, and disclaims all
warranties of merchantability or fitness
for a particular purpose with respect to
3 In Amendment No. 1, the Exchange made minor
technical changes to the proposed rule text.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
6 Lehman and Lehman Brothers Inc. are marks
owned by Lehman Brothers Inc.
7 17 CFR 240.19b–4(f)(6)(iii).
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Federal Register / Vol. 70, No. 146 / Monday, August 1, 2005 / Notices
any Lehman Brothers Inc. index, any
opening, intra-day or closing value
therefor, any data included therein or
relating thereto, or any option contract
on exchange traded funds based
thereon. In no event shall Lehman
Brothers Inc. have any liability for any
damages, claims, losses (including any
indirect or consequential losses),
expenses or delays, whether direct or
indirect, foreseen or unforeseen,
suffered by any person arising out of
any circumstance or occurrence relating
to the person’s use of any Lehman
Brothers Inc. index, any opening, intraday or closing value therefor, any data
included therein or relating thereto, or
any option contract on exchange traded
funds based thereon, or arising out of
any errors or delays in calculating or
disseminating any such 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,
Phlx included statements concerning
the purpose of, and basis for, the
proposed rule change, as amended, 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
The purpose of the proposed rule
change, as amended, is to adopt new
Phlx Rule 1106A, which applies to
Indexes that were recently licensed by
Lehman Brothers Inc. (‘‘Lehman’’) to the
Exchange. The Exchange is proposing to
establish new Phlx Rule 1106A as
required by the licensing agreement
with Lehman that allows the Exchange
to license, trade, and market options on
five iShares products.8
Proposed Phlx Rule 1106A, which is
similar in nature to disclaimers of index
providers at current Phlx Rules 1104A
(SIG Indices, LLLP) and 1105A
8 Pursuant to the licensing agreement and
Exchange Rule 1009, the Exchange currently lists
options on iShares Lehman 1–3 Year Treasury Bond
Fund (SHY), iShares Lehman 7–10 year Treasury
Bond Fund (IEF), iShares Lehman 20+ Year
Treasury Bond Fund (TLT), iShares Lehman
Aggregate Bond Fund (AGG), and iShares Lehman
TIPS Bond Fund (TBK). The products are sponsored
by Barclays Global Investors.
VerDate jul<14>2003
14:01 Jul 29, 2005
Jkt 205001
(Standard and Poor’s Index),9
establishes, among other things,
disclaimers regarding data from the
Indexes including no guarantee of
accuracy and/or completeness,
regarding express or implied warranties
of merchantability or fitness for a
particular purpose, and regarding
liability for damages, claims, losses or
delays.
The Exchange believes that proposed
Phlx Rule 1106A, being similar in
concept to current Phlx Rules 1104A
and 1105A as well as rules of other
options exchanges,10 should put
Lehman on similar footing with other
licensors of options on indexes to the
Exchange.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with the provisions of
Section 6(b) of the Act,11 in general, and
with Section 6(b)(5) of the Act,12 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 Lehman to
continue to maintain Indexes so that
options on the respective indexes may
be traded on the Exchange, thereby
providing investors with enhanced
investment opportunities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
9 The Exchange noted in its filings to adopt Phlx
Rules 1104A and 1105A that the proposed
disclaimers were appropriate given that they were
similar to disclaimer provisions of American Stock
Exchange (‘‘Amex’’) Rule 902C relating to indexes
underlying options listed on that exchange. See
Securities Exchange Act Release Nos. 48135 (July 7,
2003), 68 FR 42154 (July 16, 2003) (SR–Phlx–2003–
21) (adopting Phlx Rule 1004A regarding SIG
indices) and 51664 (May 6, 2005), 70 FR 25641
(May 13, 2005) (SR–2005–24) (adopting Phlx Rule
1105A regarding S&P 500 and expanding Phlx Rule
1104A).
10 See disclaimers and limitation of liability at
Amex Rule 902C and at Chicago Board Options
Exchange, Inc. Rule 24.14.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
PO 00000
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44145
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is
subject to Section 19(b)(3)(A)(iii) of the
Act 13 and Rule 19b–4(f)(6) thereunder 14
because the proposal: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative prior to 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; provided that the
Exchange has given the Commission
notice of its intent to file the proposed
rule change, along with a brief
description and text of the proposed
rule change, at least five business days
prior to the date of filing of the
proposed rule change, or such shorter
time as designated by the Commission.
Phlx satisfied the five-day pre-filing
requirement.
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(b)(iii), the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay.16 The
Commission believes that such waiver is
consistent with the protection of
investors and the public interest
because it would allow for the
immediate implementation of a rule
similar to rules already in place at the
Phlx and at other options exchanges.
For this reason, the Commission
designates the proposed rule change, as
amended, to be effective upon filing
with the Commission.17
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
13 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 For 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).
14 17
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44146
Federal Register / Vol. 70, No. 146 / Monday, August 1, 2005 / Notices
interest, for the protection of investors
or otherwise in furtherance of the
purposes of the Act.18
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2005–38 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–2005–38. 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 (https://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
18 The effective date of the original proposal is
June 14, 2005, and the effective date of the
amendment is July 13, 2005. For purposes of
calculating the 30-day operative delay and the 60day period within which the Commission may
summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission
considers that period to commence on July 13,
2005, the date the Exchange filed Amendment No.
1 to the proposed rule change. See U.S.C.
78s(b)(3)(C).
VerDate jul<14>2003
14:01 Jul 29, 2005
Jkt 205001
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2005–38 and should
be submitted on or before August 22,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.19
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4077 Filed 7–29–05; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments and Recommendations
Notice and request for
comments.
ACTION:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995, this
notice announces the Small Business
Administration’s intentions to request
approval on a new and/or currently
approved information collection.
DATES: Submit comments on or before
September 30, 2005.
ADDRESSES: Send all comments
regarding whether this information
collection is necessary for the proper
performance of the function of the
agency, whether the burden estimates
are accurate, and if there are ways to
minimize the estimated burden and
enhance the quality of the collection, to
Veronica Dymond, Public Affairs
Specialist, Office of Communications
and Public Liaison, Small Business
Administration, 409 3rd Street SW.,
Suite 7450, Wash, DC 20416
FOR FURTHER INFORMATION CONTACT:
Veronica J. Dymond, Public Affairs
Specialist, 202–205–6746
veronica.dymond@sba.gov Curtis B.
Rich, Management Analyst, 202–205–
7030 curtis.rich@sba.sba
SUPPLEMENTARY INFORMATION:
Title: ‘‘Small Business Week Award
Nominees.’’
Description of Respondents:
Entrepreneurs and Small Business
owners nominated for SBA’s National
Small Business Week awards
Nominations are received by SBA’s
district, regional, and headquarters
offices.
Form No: 2273.
Annual Responses: 600.
Annual Burden: 450.
Jacqueline White,
Chief, Administrative Information Branch.
[FR Doc. 05–15116 Filed 7–29–05; 8:45 am]
BILLING CODE 8025–01–P
PO 00000
19 17
CFR 200.30–3(a)(12).
Frm 00064
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DEPARTMENT OF STATE
[Public Notice 5105]
Cultural Property: Italy; Pre-Classical,
Classical, and Imperial Archaelogical
Material: U.S. Import Restrictions;
Memorandum of Understanding
Notice of Proposal to Extend the
Memorandum of Understanding
Between the Government of the United
States of America and the Government
of the Republic of Italy Concerning the
Imposition of Import Restrictions on
Categories of Archaeological Material
Representing the Pre-Classical, Classical
and Imperial Roman Periods of Italy.
The Government of the Republic of
Italy has informed the Government of
the United States of its interest in an
extension of the Memorandum of
Understanding Between the
Government of the United States of
America and the Government of the
Republic of Italy Concerning the
Imposition of Import Restrictions on
Categories of Archaeological Material
Representing the Pre-Classical, Classical
and Imperial Roman Periods of Italy.
Pursuant to the authority vested in the
Assistant Secretary for Educational and
Cultural Affairs, and pursuant to the
requirement under 19 U.S.C. 2602(f)(1),
an extension of this Memorandum of
Understanding is hereby proposed.
Pursuant to 19 U.S.C. 2602(f)(2), the
views and recommendations of the
Cultural Property Advisory Committee
regarding this proposal will be
requested.
A copy of this Memorandum of
Understanding, the designated list of
restricted categories of material, and
related information can be found at the
following Web site: https://
exchanges.state.gov/culprop.
Dated: July 25, 2005.
Dina Habib Powell,
Assistant Secretary for Educational and
Cultural Affairs, Department of State.
[FR Doc. 05–15153 Filed 7–29–05; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 5106]
Notice of Meeting of the Cultural
Property Advisory Committee
In accordance with the provisions of
the Convention on Cultural Property
Implementation Act (19 U.S.C. 2601 et
seq.) there will be a meeting of the
Cultural Property Advisory Committee
on Thursday, September 8, 2005, from
approximately 9 a.m. to 5:30 p.m., and
on Friday, September 9, 2005, from
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]]>Agencies
[Federal Register Volume 70, Number 146 (Monday, August 1, 2005)]
[Notices]
[Pages 44144-44146]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4077]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52102; File No. SR-Phlx-2005-38]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto Relating to Disclaimer of Warranties by
Lehman Brothers Inc.
July 21, 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 June 14, 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. On July 13, 2005,
the Exchange amended the proposed rule change (``Amendment No. 1'').\3\
The Exchange has filed the proposal 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,
as amended, from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange made minor technical
changes to the proposed rule text.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt Phlx Rule 1106A (Lehman Brothers
Inc. Indexes) to add a disclaimer regarding data from Lehman Brothers
Inc. Indexes (``Indexes''),\6\ express or implied warranties of
merchantability or fitness, and liability for damages or claims. The
Phlx has designated this proposal as non-controversial and has
requested that the Commission waive the 30-day pre-operative waiting
period contained in Rule 19b-4(f)(6)(iii) under the Act.\7\ The text of
the proposed rule change, as amended, is below. Proposed new language
is italicized.
---------------------------------------------------------------------------
\6\ Lehman and Lehman Brothers Inc. are marks owned by Lehman
Brothers Inc.
\7\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
* * * * *
Rule 1106A.
Lehman Brothers Inc. Indexes
Lehman Brothers Inc. makes no warranty, express or implied, as to
the results to be obtained by any person or entity from the use of any
Lehman Brothers Inc. index, any opening, intra-day or closing value
therefor, or any data included therein or relating thereto in
connection with the trading of any option contract on exchange traded
funds based thereon, or for any other purpose. Lehman Brothers Inc.
does not guarantee the accuracy and/or completeness of any Lehman
Brothers Inc. index, or any opening, intra-day or closing value
therefor, or any data included therein or related thereto. Lehman
Brothers Inc. makes no express or implied warranties, and disclaims all
warranties of merchantability or fitness for a particular purpose with
respect to
[[Page 44145]]
any Lehman Brothers Inc. index, any opening, intra-day or closing value
therefor, any data included therein or relating thereto, or any option
contract on exchange traded funds based thereon. In no event shall
Lehman Brothers Inc. have any liability for any damages, claims, losses
(including any indirect or consequential losses), expenses or delays,
whether direct or indirect, foreseen or unforeseen, suffered by any
person arising out of any circumstance or occurrence relating to the
person's use of any Lehman Brothers Inc. index, any opening, intra-day
or closing value therefor, any data included therein or relating
thereto, or any option contract on exchange traded funds based thereon,
or arising out of any errors or delays in calculating or disseminating
any such 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, Phlx included statements
concerning the purpose of, and basis for, the proposed rule change, as
amended, 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
The purpose of the proposed rule change, as amended, is to adopt
new Phlx Rule 1106A, which applies to Indexes that were recently
licensed by Lehman Brothers Inc. (``Lehman'') to the Exchange. The
Exchange is proposing to establish new Phlx Rule 1106A as required by
the licensing agreement with Lehman that allows the Exchange to
license, trade, and market options on five iShares products.\8\
---------------------------------------------------------------------------
\8\ Pursuant to the licensing agreement and Exchange Rule 1009,
the Exchange currently lists options on iShares Lehman 1-3 Year
Treasury Bond Fund (SHY), iShares Lehman 7-10 year Treasury Bond
Fund (IEF), iShares Lehman 20+ Year Treasury Bond Fund (TLT),
iShares Lehman Aggregate Bond Fund (AGG), and iShares Lehman TIPS
Bond Fund (TBK). The products are sponsored by Barclays Global
Investors.
---------------------------------------------------------------------------
Proposed Phlx Rule 1106A, which is similar in nature to disclaimers
of index providers at current Phlx Rules 1104A (SIG Indices, LLLP) and
1105A (Standard and Poor's[supreg] Index),\9\ establishes, among other
things, disclaimers regarding data from the Indexes including no
guarantee of accuracy and/or completeness, regarding express or implied
warranties of merchantability or fitness for a particular purpose, and
regarding liability for damages, claims, losses or delays.
---------------------------------------------------------------------------
\9\ The Exchange noted in its filings to adopt Phlx Rules 1104A
and 1105A that the proposed disclaimers were appropriate given that
they were similar to disclaimer provisions of American Stock
Exchange (``Amex'') Rule 902C relating to indexes underlying options
listed on that exchange. See Securities Exchange Act Release Nos.
48135 (July 7, 2003), 68 FR 42154 (July 16, 2003) (SR-Phlx-2003-21)
(adopting Phlx Rule 1004A regarding SIG indices) and 51664 (May 6,
2005), 70 FR 25641 (May 13, 2005) (SR-2005-24) (adopting Phlx Rule
1105A regarding S&P 500 and expanding Phlx Rule 1104A).
---------------------------------------------------------------------------
The Exchange believes that proposed Phlx Rule 1106A, being similar
in concept to current Phlx Rules 1104A and 1105A as well as rules of
other options exchanges,\10\ should put Lehman on similar footing with
other licensors of options on indexes to the Exchange.
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\10\ See disclaimers and limitation of liability at Amex Rule
902C and at Chicago Board Options Exchange, Inc. Rule 24.14.
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2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with the provisions of Section 6(b) of the Act,\11\ in
general, and with Section 6(b)(5) of the Act,\12\ 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 Lehman to continue to maintain Indexes so that options on the
respective indexes may be traded on the Exchange, thereby providing
investors with enhanced investment opportunities.
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\11\ 15 U.S.C. 78f(b).
\12\ 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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is subject to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder \14\
because the proposal: (i) Does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and (iii) does not become operative
prior to 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; provided that the Exchange has given the
Commission notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. Phlx
satisfied the five-day pre-filing requirement.
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(b)(iii), the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay.\16\ The Commission
believes that such waiver is consistent with the protection of
investors and the public interest because it would allow for the
immediate implementation of a rule similar to rules already in place at
the Phlx and at other options exchanges. For this reason, the
Commission designates the proposed rule change, as amended, to be
effective upon filing with the Commission.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For 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 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
[[Page 44146]]
interest, for the protection of investors or otherwise in furtherance
of the purposes of the Act.\18\
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\18\ The effective date of the original proposal is June 14,
2005, and the effective date of the amendment is July 13, 2005. For
purposes of calculating the 30-day operative delay and the 60-day
period within which the Commission may summarily abrogate the
proposed rule change under Section 19(b)(3)(C) of the Act, the
Commission considers that period to commence on July 13, 2005, the
date the Exchange filed Amendment No. 1 to the proposed rule change.
See 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, 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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2005-38 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-2005-38. 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 (https://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-2005-38 and should be submitted on or before August
22, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4077 Filed 7-29-05; 8:45 am]
BILLING CODE 8010-01-P
