[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Notices]
[Pages 60872-60873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29160]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42087; File No. SR-NYSE-99-29]
Self-Regulatory Organizations; Notice of Filing and Order
Granting Accelerated Approval to Amendment No. 2 to a Proposed Rule
Change by the New York Stock Exchange, Inc. Extending a Pilot Program
Relating to Continued Listing Standards Through December 1, 1999
November 1, 1999.
1. Introduction
On June 22, 1999, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange''), filed with the Securities and Exchange Commission
(``SEC'' or ``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 to amend Section 8 of its Listed
Company Manual (``Manual''), make corresponding changes to NYSE Rule
499, and implement the proposed changes pursuant to a pilot program
(``pilot''). On July 26, 1999, the Commission issued notice of the
filing and approved, on an accelerated basis, the portion of the filing
establishing a pilot through November 1, 1999.\3\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 41648 (July 26, 1999),
64 FR 41986 (August 2, 1999).
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On October 26, 1999, the NYSE submitted Amendment No. 1, proposing
to revise the continued listing criteria applicable to closed-end
investment companies (``Funds').\4\ On November 1, 1999, the NYSE
submitted Amendment No. 2, proposing to extend the pilot until December
1, 1999, or such earlier time as the Commission approves the Exchange's
request for permanent approval of the program.\5\ The Commission is
publishing this notice to solicit comments on and grant accelerated
approval to Amendment No. 2.
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\4\ See Letter from James E. Buck, Senior Vice President and
Secretary, NYSE, to Richard C. Strasser, Assistant Director,
Division of Market Regulation, SEC, dated October 25, 1999.
\5\ See Letter from James E. Buck, Senior Vice President and
Secretary, NYSE, to Jonathan Katz, Secretary, SEC, dated November 1,
1999.
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II. Proposed Rule Change
In Amendment No. 2, the NYSE is proposing to extend the pilot which
amends Section 8 of the NYSE Manual and makes corresponding changes to
NYSE Rule 499 regarding criteria governing the continued listing of
securities. The proposed rule change
[[Page 60873]]
implemented pursuant to the pilot modifies several of the NYSE's
existing continued listing criteria, codifies certain Exchange policies
regarding the NYSE's continued listing criteria, replaces certain of
the current criteria with new continued listing criteria, and creates
subsections in the continued listing section.\6\
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\6\ See Securities Exchange Act Release No. 41648, supra note 3.
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III. Discussion
After careful consideration, the Commission has concluded, for the
reasons set forth below, that the extension of the pilot until December
1, 1999, or such earlier time as the Commission takes final action on
the Exchange's request for permanent approval of the pilot, is
consistent with the requirements of the Act and the rules and
regulations thereunder. In particular, the extension is consistent with
Section 6(b)(5) \7\ requirements that the rules of an exchange be
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanisms of a free and open market and
a national market system, and, in general, to protect investors and the
public. The Commission believes that continuation of the pilot will
maintain the status quo while the Commission and the Exchange review
the proposed changes to the continued listing criteria, including
Amendment No. 1.
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\7\ 15 U.S.C. 78f(b)(5).
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The Commission finds good cause for approving the extension of the
pilot prior to the 30th day after the date of publication of notice of
the filing in the Federal Register. It could be disruptive to the NYSE
market and confusing to market participants to reintroduce the previous
continued listing criteria for, potentially, a brief period while the
Commission considers the request for permanent approval of the
pilot.\8\ Additionally, a lapse in the pilot could affect companies
whose position is precariously balanced between listing and delisting
depending on whether the proposed continued listing criteria are
approved. This is particularly true of Funds, which could be subject to
the original continued listing criteria, the criteria proposed and
implemented in the pilot, or the criteria proposed in Amendment No. 1.
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\8\ The Commission's approval of the pilot should not be
interpreted as suggesting that the Commission is predisposed to
approving the proposal on a permanent basis.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning Amendment No. 2, including whether the proposed
amendment 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,
DC 20549-0609. 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 at the Commission's Public Reference Room. Copies of such
filing will also be available for inspection and copying at the
principal office of the Exchange. All submissions should refer to File
No. SR-NYSE-99-29 and should be submitted by November 29, 1999.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that Amendment No. 2 to the proposed rule change (SR-NYSE-99-
29), which extends the pilot to December 1, 1999, or such earlier time
as the Commission takes final action on the Exchange's request for
permanent approval of the program, is hereby approved on an accelerated
basis.\10\
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\9\ 15 U.S.C. 78s(b)(2).
\10\ In approving Amendment No. 2, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-29160 Filed 11-5-99; 8:45 am]
BILLING CODE 8010-01-M