[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2515 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2515

   To amend the Securities Exchange Act of 1934 with respect to the 
extension of unlisted trading privileges for corporate securities, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 1993

  Mr. Wyden (for himself, Mrs. Collins of Illinois, Mr. Moorhead, Mr. 
Cooper, Mr. Fields of Texas, Mr. Lehman, Mr. Oxley, Mr. Richardson, Mr. 
   Hastert, Ms. Margolies-Mezvinsky, Mr. Gillmor, Mr. Synar, and Mr. 
  Greenwood) introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
   To amend the Securities Exchange Act of 1934 with respect to the 
extension of unlisted trading privileges for corporate securities, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AMENDMENT TO THE SECURITIES EXCHANGE ACT OF 1934.

    Section 12(f) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l(f)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
    ``(f)(1)(A) Notwithstanding the foregoing provisions of this 
section, any national securities exchange, in accordance with the 
requirements of this subsection and the rules thereunder, may extend 
unlisted trading privileges to any security--
            ``(i) listed and registered on any national securities 
        exchange, or
            ``(ii) otherwise registered pursuant to section 12 of this 
        title, or that would be required to be so registered except for 
        the exemption from registration provided in subsection 
        (g)(2)(B) or (g)(2)(G) of that section,
if the applicant exchange is a signatory to a transaction reporting 
plan that governs unlisted trading privileges in the subject security, 
and has received Commission approval by rule or order to effect 
transactions pursuant to such plan.
    ``(B) The Commission may designate, by rule or regulation, such 
additional procedures or requirements for extending unlisted trading 
privileges to any security as the Commission deems necessary or 
appropriate for the maintenance of fair and orderly markets, the 
protection of investors and the public interest, or otherwise in 
furtherance of the purposes of this title.
    ``(C) An exchange may continue to extend unlisted trading 
privileges only so long as the applicant exchange and the subject 
security continue to satisfy the requirements for eligibility set forth 
in this paragraph (1), including any rules and regulations adopted 
pursuant to this paragraph, except that unlisted trading privileges may 
continue as to securities which had been admitted on such exchange 
prior to July 1, 1964, notwithstanding the failure to satisfy such 
requirements. If unlisted trading privileges in a security have 
terminated pursuant to this subparagraph, a new application under this 
subsection and the rules thereunder shall be required to establish 
unlisted trading privileges in the security.
    ``(2)(A) On or before filing an application with the Commission 
pursuant to this subsection, each national securities exchange shall 
send a copy of the application to the issuer of the security and to 
each national securities exchange on which such security is or will be 
listed (or, if not listed on any national securities exchange, to any 
registered securities association that sponsors an automated quotation 
system on which the security is quoted). Such application shall include 
a certification by the applicant exchange that the applicant exchange's 
rules are reasonably designed to maintain fair and orderly markets and 
protect investors and the public interest in connection with the 
proposal to trade the securities that are the subject of the 
application. An application filed pursuant to this subsection shall be 
made in accordance with such rules or regulations as the Commission may 
prescribe and shall take effect upon filing with the Commission, unless 
the Commission provides otherwise by rule or regulation.
    ``(B) At any time within 60 days of the date of filing of such 
application, the Commission summarily may suspend unlisted trading 
privileges extended pursuant to such application and such suspension 
shall remain in effect until the Commission by order grants the 
application. Such a suspension shall not be reviewable under section 25 
of this title and shall not be deemed to be final agency action for 
purposes of section 704 of title 5, United States Code. A summary 
suspension shall not affect the validity or force of a grant of 
unlisted trading privileges in effect prior to such suspension, 
provided that such application was properly filed in accordance with 
this subsection and any rules or regulations promulgated by the 
Commission thereunder.
    ``(C) No application for the extension of unlisted trading 
privileges that has been suspended pursuant to subparagraph (B) of this 
paragraph shall be granted unless the Commission finds, after notice 
and opportunity for hearing, that the extension of unlisted trading 
privileges pursuant to such application is consistent with the 
maintenance of fair and orderly markets and the protection of investors 
and the public interest otherwise in furtherance of the purposes of 
this title.''; and
            (2) in paragraph 3, by striking ``The Commission'' and 
        inserting ``Other than for purposes of paragraph (2) of this 
        subsection, the Commission''.

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