[Federal Register Volume 61, Number 68 (Monday, April 8, 1996)]
[Notices]
[Pages 15547-15548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8544]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37056; File No. SR-NYSE-96-06]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by New York Stock Exchange, Inc., Relating to Continued Listing 
Standards for Specialized Securities

April 1, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on 
March 18, 1996, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.

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

    The NYSE is proposing amendments to its continued listing criteria, 
contained in Paragraphs 801 and 802.01 of the Exchange's Listed Company 
Manual (``Manual''). The amendments contain continue listing criteria 
for certain ``specialized securities'': stock warrants; foreign 
currency warrants and currency index warrants; stock index warrants; 
contingent value rights (``CVRs''); other securities; and equity-linked 
debt securities (``ELDS'').
    The text of the proposed rule change is available at the Exchange 
and the Commission.

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

    In its filing with the Commission, the self-regulatory organization 
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 test of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements.

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

1. Purpose
    Over the past several years the Exchange has adopted listing 
standards for specialized securities. These standards are contained in 
various sections of Paragraph 703 of the Manual. Although the Exchange 
has adopted uniform listing standards for these securities, there 
currently are no corresponding uniform continued listing criteria. The 
purpose of the proposed rule change is to adopt such uniform 
criteria.\1\

    \1\ Although there currently are continued listing criteria for 
warrants, those criteria do not conform to the current warrant 
listing standards. Therefore, the proposed rule change would delete 
the current warrant continued listing criteria and include warrants 
within the new uniform criteria.
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    The current listing standards for specialized securities require 
one million shares outstanding, 400 holders, $4 million aggregate 
market value and a minimum life of one year.\2\ The proposed continued 
listing criteria would require 100,000 publicly-held shares, 100 
holders and an aggregate market value of $1 million. The proposed 
continued listing criteria also would require that for securities that 
are related to other securities, such as warrants and CVRs, the related 
security must remain listed. For ELDS, the issuer of the linked 
security must remain subject to last sale reporting obligations and 
remain trading in a market in which there is last sale reporting, again 
paralleling the original listing standards.\3\ However, if the related 
or linked securities are delisted for violation of the Exchange's 
``Corporate Responsibility'' criteria in Section 3 of the Manual, the 
exchange will also delist any related specialized securities.\4\

    \2\ There are additional standards for certain of these 
securities. For example, ELDS must have a term of two to seven years 
(two to three years for non-U.S. securities).
    \3\ Telephone conservation between Michael Simon, Milbank, 
Tweed, Hadley & McCloy, and Jennifer S. Choi, Attorney, Division of 
Market Regulation, SEC, on April 1, 1996.
    \4\ The proposed rule change also would eliminate the delisting 
criteria relating to creation of a class of non-voting common stock. 
These criteria are no longer appropriate because the Exchange 
currently has listing criteria specifically addressing non-voting 
common stock. See Paragraph 313.00(B) of the Manual.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act in that it is designed to prevent fraudulent and manipulative acts 
and practices and to perfect the mechanism of a free and open market.

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

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

[[Page 15548]]


C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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

    Within 35 days of the publication of this notice in the Federal 
Register or within such other period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the commission will:
    (A) by order approve the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street NW., Washington, D.C. 20549. 
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. Sec. 552, will be available for inspection and copying at 
the commission's Public Reference Section, 450 Fifth Street NW., 
Washington, D.C. 20549. 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-96-06 and should be 
submitted by April 29, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-8544 Filed 4-5-96; 8:45 am]
BILLING CODE 8010-01-M