
[Federal Register: March 19, 2008 (Volume 73, Number 54)]
[Notices]               
[Page 14858-14859]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19mr08-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57485; File No. SR-Amex-2008-04]

 
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

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 19b-4 thereunder,\2\ a 
proposed rule change relating to the dissemination of the index value 
for Index-Linked Securities.\3\ The proposed rule change was published 
for comment in the Federal Register on February 20, 2008 for a 15-day 
comment period.\4\ The Commission received no comments on the proposal. 
This order approves the proposed rule change on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Index-Linked 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.
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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 Index-Linked 
Securities to that of Index Fund Shares and Portfolio Depository 
Receipts (collectively, exchange-traded 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.
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    \5\ See Commentary .02(b)(ii) to Rule 1000A--AEMI (Index Fund 
Shares) and Commentary .03(b)(ii) to Rule 1000--AEMI (Portfolio 
Depository Receipts).
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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.
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    \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).
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    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]]

non-U.S. components, the proposed 60-second standard reflects 
limitations, in some instances, on the frequency of intra-day 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 
60-second standard relating to the dissemination of the value of an 
index composed, at least in part, of foreign securities should apply to 
Index-Linked 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 Index-Linked Securities listed on another national securities 
exchange.\9\
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    \8\ See, e.g., Securities Exchange Act Release Nos. 55269 
(February 9, 2007), 72 FR 7490 (February 15, 2007) (SR-NASDAQ-2006-
050); 55113 (January 17, 2007), 72 FR 3179 (January 24, 2007) (SR-
NYSE-2006-101); and 54739 (November 9, 2006), 71 FR 66993 (November 
17, 2006) (SR-Amex-2006-78).
    \9\ See Securities Exchange Act Release No. 57389 (February 27, 
2008), 73 FR 11973 (March 5, 2008) (SR-NYSEArca-2008-06).
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    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 Index-Linked Securities, should 
promote the continued listing and trading of Index-Linked 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.
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    \10\ Id.
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\11\ that the proposed rule change (SR-Amex-2008-04) is approved on 
an accelerated basis.
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    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-5429 Filed 3-18-08; 8:45 am]

BILLING CODE 8011-01-P
