Federal Register: March 19, 2008 (Volume 73, Number 54)
DOCID: fr19mr08-116 FR Doc E8-5429
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57485; File No. SR-Amex-2008-04]
NOTICE: NOTICES
DOCID: fr19mr08-116
ACTION: Self-Regulatory Organizations; Proposed Rule Changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; American Stock Exchange LLC; Order Granting Accelerated Approval of Proposed Rule Change Relating to the Dissemination of the Index Value for Index-Linked Securities
DOCUMENT SUMMARY:
March 12, 2008.
I. Introduction
On January 30, 2008, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b4 thereunder,\2\ a
proposed rule change relating to the dissemination of the index value
for IndexLinked Securities.\3\ The proposed rule change was published
for comment in the Federal Register on February 20, 2008 for a 15day
comment period.\4\ The Commission received no comments on the proposal.
This order approves the proposed rule change on an accelerated basis. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ IndexLinked Securities are securities that provide for the
payment at maturity of a cash amount based on the performance of an
underlying index or indexes. See Amex Company Guide Sections 107D.
\4\ See Securities Exchange Act Release No. 57325 (February 13, 2008), 73 FR 9375.
II. Description of the Proposal
The Exchange proposed to amend sections 107D(i) and section
107(d)(h)(3)(ii) of the Amex Company Guide (``Company Guide'') to
conform the index dissemination requirements relating to IndexLinked
Securities to that of Index Fund Shares and Portfolio Depository
Receipts (collectively, exchangetraded funds or ``ETFs'').\5\ Section
107(D)(i)(iii) of the Company Guide provides that the current value of
an index will be widely disseminated at least every 15 seconds. The
proposed amendment provides that the current value of an index or
composite value of more than one index will be widely disseminated at
least: (i) Every 15 seconds with respect to indexes containing only
securities listed on a national securities exchange; or (ii) every 60
seconds with respect to indexes containing foreign country securities.
If the official index value does not change during some or all of the
period when trading is occurring on the Exchange, then the last
calculated official index value must remain available throughout
Exchange trading hours. In addition, the Exchange proposes to amend the
delisting requirements set forth in section 107D(h)(3)(ii) to
distinguish between indexes consisting solely of securities listed on a
national securities exchange and those including components that are foreign country securities.
\5\ See Commentary .02(b)(ii) to Rule 1000AAEMI (Index Fund
Shares) and Commentary .03(b)(ii) to Rule 1000AEMI (Portfolio Depository Receipts).
III. Discussion and Commission's Findings
After careful consideration, 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.\6\ In particular, the Commission finds that the proposed rule
change is consistent with section 6(b)(5) of the Act,\7\ which
requires, among other things, that the rules of an exchange be 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, protect investors and the public interest.
\6\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(5).
The Commission notes that opportunities to invest in derivative
securities products based not only on U.S. securities, but also on an
international or global index of equity securities, provide additional
choices to accommodate particular investment needs and objectives, to
the benefit of investors. With respect to the dissemination of the value of an index that is comprised, at least in part, of
[[Page 14859]]
nonU.S. components, the proposed 60second standard reflects
limitations, in some instances, on the frequency of intraday trading
information with respect to foreign country securities and the fact
that in many cases, trading hours for overseas markets overly only in
part, or not at all, with the Exchange's trading hours. In addition, if
an index or portfolio value does not change during some or all of the
period when the derivative securities product trades on the Exchange,
the last official calculated index value will remain available
throughout Exchange trading hours. The Commission believes that such
60second standard relating to the dissemination of the value of an
index composed, at least in part, of foreign securities should apply to
IndexLinked Securities as well as ETFs and finds that the Exchange's
proposal is consistent with the Act on the same basis that it approved
the other exchange's generic listing standards for ETFs based on
international or global indexes.\8\ In addition, the Commission notes
that it has approved substantively identical dissemination requirements
for IndexLinked Securities listed on another national securities exchange.\9\
\8\ See, e.g., Securities Exchange Act Release Nos. 55269
(February 9, 2007), 72 FR 7490 (February 15, 2007) (SRNASDAQ2006
050); 55113 (January 17, 2007), 72 FR 3179 (January 24, 2007) (SR
NYSE2006101); and 54739 (November 9, 2006), 71 FR 66993 (November 17, 2006) (SRAmex200678).
\9\ See Securities Exchange Act Release No. 57389 (February 27, 2008), 73 FR 11973 (March 5, 2008) (SRNYSEArca200806).
The Commission finds good cause for approving the proposed rule change before the 30th day after the date of publication of notice of filing thereof in the Federal Register. The Commission notes that the proposal is substantively identical to a proposed rule change that the Commission approved for another national securities exchange.\10\ In addition, the Commission believes that accelerated approval of the proposed rule change, which clarifies the dissemination of the value of the index underlying an issue of IndexLinked Securities, should promote the continued listing and trading of IndexLinked Securities to the benefit of investors. Therefore, the Commission finds good cause, consistent with section 19(b)(2) of the Act, to approve the proposed rule change on an accelerated basis.
\10\ Id.
It is therefore ordered, pursuant to section 19(b)(2) of the Act,\11\ that the proposed rule change (SRAmex200804) is approved on an accelerated basis.
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\
\12\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E85429 Filed 31808; 8:45 am]
BILLING CODE 801101P
SUMMARY:
American Stock Exchange LLC,
DOCUMENT BODY 2:
March 12, 2008.
I. Introduction
On January 30, 2008, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b4 thereunder,\2\ a
proposed rule change relating to the dissemination of the index value
for IndexLinked Securities.\3\ The proposed rule change was published
for comment in the Federal Register on February 20, 2008 for a 15day
comment period.\4\ The Commission received no comments on the proposal.
This order approves the proposed rule change on an accelerated basis. \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ IndexLinked Securities are securities that provide for the
payment at maturity of a cash amount based on the performance of an
underlying index or indexes. See Amex Company Guide Sections 107D.
\4\ See Securities Exchange Act Release No. 57325 (February 13, 2008), 73 FR 9375.
II. Description of the Proposal
The Exchange proposed to amend sections 107D(i) and section
107(d)(h)(3)(ii) of the Amex Company Guide (``Company Guide'') to
conform the index dissemination requirements relating to IndexLinked
Securities to that of Index Fund Shares and Portfolio Depository
Receipts (collectively, exchangetraded funds or ``ETFs'').\5\ Section
107(D)(i)(iii) of the Company Guide provides that the current value of
an index will be widely disseminated at least every 15 seconds. The
proposed amendment provides that the current value of an index or
composite value of more than one index will be widely disseminated at
least: (i) Every 15 seconds with respect to indexes containing only
securities listed on a national securities exchange; or (ii) every 60
seconds with respect to indexes containing foreign country securities.
If the official index value does not change during some or all of the
period when trading is occurring on the Exchange, then the last
calculated official index value must remain available throughout
Exchange trading hours. In addition, the Exchange proposes to amend the
delisting requirements set forth in section 107D(h)(3)(ii) to
distinguish between indexes consisting solely of securities listed on a
national securities exchange and those including components that are foreign country securities.
\5\ See Commentary .02(b)(ii) to Rule 1000AAEMI (Index Fund
Shares) and Commentary .03(b)(ii) to Rule 1000AEMI (Portfolio Depository Receipts).
III. Discussion and Commission's Findings
After careful consideration, 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.\6\ In particular, the Commission finds that the proposed rule
change is consistent with section 6(b)(5) of the Act,\7\ which
requires, among other things, that the rules of an exchange be 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, protect investors and the public interest.
\6\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(5).
The Commission notes that opportunities to invest in derivative
securities products based not only on U.S. securities, but also on an
international or global index of equity securities, provide additional
choices to accommodate particular investment needs and objectives, to
the benefit of investors. With respect to the dissemination of the value of an index that is comprised, at least in part, of
[[Page 14859]]
nonU.S. components, the proposed 60second standard reflects
limitations, in some instances, on the frequency of intraday trading
information with respect to foreign country securities and the fact
that in many cases, trading hours for overseas markets overly only in
part, or not at all, with the Exchange's trading hours. In addition, if
an index or portfolio value does not change during some or all of the
period when the derivative securities product trades on the Exchange,
the last official calculated index value will remain available
throughout Exchange trading hours. The Commission believes that such
60second standard relating to the dissemination of the value of an
index composed, at least in part, of foreign securities should apply to
IndexLinked Securities as well as ETFs and finds that the Exchange's
proposal is consistent with the Act on the same basis that it approved
the other exchange's generic listing standards for ETFs based on
international or global indexes.\8\ In addition, the Commission notes
that it has approved substantively identical dissemination requirements
for IndexLinked Securities listed on another national securities exchange.\9\
\8\ See, e.g., Securities Exchange Act Release Nos. 55269
(February 9, 2007), 72 FR 7490 (February 15, 2007) (SRNASDAQ2006
050); 55113 (January 17, 2007), 72 FR 3179 (January 24, 2007) (SR
NYSE2006101); and 54739 (November 9, 2006), 71 FR 66993 (November 17, 2006) (SRAmex200678).
\9\ See Securities Exchange Act Release No. 57389 (February 27, 2008), 73 FR 11973 (March 5, 2008) (SRNYSEArca200806).
The Commission finds good cause for approving the proposed rule change before the 30th day after the date of publication of notice of filing thereof in the Federal Register. The Commission notes that the proposal is substantively identical to a proposed rule change that the Commission approved for another national securities exchange.\10\ In addition, the Commission believes that accelerated approval of the proposed rule change, which clarifies the dissemination of the value of the index underlying an issue of IndexLinked Securities, should promote the continued listing and trading of IndexLinked Securities to the benefit of investors. Therefore, the Commission finds good cause, consistent with section 19(b)(2) of the Act, to approve the proposed rule change on an accelerated basis.
\10\ Id.
It is therefore ordered, pursuant to section 19(b)(2) of the Act,\11\ that the proposed rule change (SRAmex200804) is approved on an accelerated basis.
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\
\12\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E85429 Filed 31808; 8:45 am]
BILLING CODE 801101P