[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