regulatory organizations; proposed rule changes: American Stock Exchange, LLC,

[Federal Register: February 10, 1999 (Volume 64, Number 27)]

[Notices]

[Page 6726]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr10fe99-140]

[[Page 6726]]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41016; File No. SR-AMEX-99-02]

Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the American Stock Exchange, LLC To Change the Name of the NatWest Energy Index to the Deutsche Bank Energy Index

February 3, 1999.

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 January 6, 1999, the American Stock Exchange, LLC (``Amex'' or ``Exchange'') filedwith the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III 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.

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

\2\ 17 CFR 240.19b-4

1. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

   The Amex proposes to amend Rules 901C and 902C to change the name of the NatWest Energy Index to the Deutsche Bank Energy Index and to include Deutsche Bank in the disclaimer part of Rule 902C. The text of the proposed rule change is available at the Office of the Secretary, Amex and at the Commission.

2. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

   In its filing with the Commission, the Amex 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 Amex has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.

   1. Self-Regulatory Organizations' Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

      1. Purpose

         In connection with the purchase of the equity derivatives business conducted by NatWest Securities Corporation in the United States by Deutsche Bank AG,\3\ the Exchange is amending its Rule 901C, Commentary .01, to reflect the change in the name of the NatWest Energy Index to the Deutsche Bank Energy Index. In addition, the Exchange is amending its Rule 902C to replace the disclaimer for NatWest with a disclaimer for Deutsche Bank. The disclaimer, identical in content to disclaimers currently in place for Standard & Poors Corporation, Morgan Stanley & Co. Incorporated and Inter@ctive Enterprises L.L.C.,\4\ states that Deutsche Bank AG does not guarantee the accuracy or completeness of the Index, makes no express or implied warranties with respect to the Index and shall have no liability for any damages, claims, losses or expenses caused by errors in the Index calculation.

         \3\ The Exchange has represented to Commission staff that Deutsche Bank has adopted special procedures to prevent the potential misuse of material, non-public information by the research, sales, and trading divisions of the firm in connection with the maintenance of the Index. In addition, the Exchange has represented that Deutsche Bank will forward to the Commission a letter outlining these procedures. Telephone conversation between Claire McGrath, Vice President and Special Counsel, Amex, and David Sieradzki, Special Counsel, Commission on February 1, 1999.

         \4\ See Amex Rule 902C.

      2. Statutory Basis

         The proposed rule change is consistent with Section 6(b) of the Act \5\ in general and furthers the objectives of Section 6(b)(5) \6\ in particular in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system.

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

         \6\ 15 U.S.C. 78f(b)(4).

   2. Self-Regulatory Organization's Statement on Burden on Competition

      The Exchange does not believe that the proposed rule change will impose any burden on competition.

   3. 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 with respect to the proposed rule change.

3. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

   Because the foregoing rule change is concerned solely with the administration of the Exchange, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and subparagraph (e)(3) of Rule 19b-4 thereunder.\8\ At any time within 60 days of the filing of the 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.\9\

   \7\ 15 U.S.C. 78s(b)(3)(A)(iii).

   \8\ 17 CFR 240.19b-4(e)(3).

   \9\ In reviewing this proposal, the Commission has considered its potential impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f).

4. Solicitation of Comments

   Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filedwith 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 such filing will also be available for inspection and copying at the principal office of the Amex. All submissions should refer to File No. SR-Amex-99-02 and should be submitted by March 3, 1999.

   For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\10\

   \10\ 17 CFR 200.30-3(a)(12).

   Margaret H. McFarland, Deputy Secretary.

   [FR Doc. 99-3218Filed2-9-99; 8:45 am]

   BILLING CODE 8010-01-M