[Federal Register Volume 65, Number 209 (Friday, October 27, 2000)]
[Notices]
[Page 64463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27616]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43463; File No. SR-Amex-00-31]


Self-Regulatory Organizations; Order Approving a Proposed Rule 
Change by the American Stock Exchange LLC Amending the Alternative 
Listing Criteria of Section 101(b) of the Amex Company Guide

October 19, 2000.

I. Introduction

    On May 30, 2000, the American Stock Exchange LLC (``Exchange'' or 
``Amex'') submitted to the Securities and Exchange Commission 
(``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 amending certain provisions of the Amex's 
alternative listing criteria. The proposed rule change was published 
for comment in the Federal Register on August 17, 2000.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 43146 (Aug. 10, 2000), 
65 FR 50253.
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II. Description of the Proposal

    Section 101(b) of the Amex Company Guide sets forth alternative 
numerical guidelines applied by the Exchange in considering the 
eligibility of issuers to list on the Exchange. These alternate 
criteria currently include a three-year history of operations, 
stockholders' equity of at least $4 million, the distribution criteria 
of Section 102(a) of the Amex Company Guide (which includes, among 
other criteria, a minimum of 800 public shareholders together with a 
minimum public distribution of 500,000 shares, or a minimum of 400 
public shareholders together with a minimum public distribution of 
1,000,000 shares), and a $15 million aggregate market value of publicly 
held shares. The Exchange proposes to reduce the operating history 
timeframe from three to two years.
    The Exchange believes that certain relatively new companies, 
particularly in high growth industries such as technology, 
biotechnology, and the Internet, may be attractive candidates for 
Exchange listing and trading when assessed under the provisions of 
Section 101(b) but may lack a three-year operating history. The 
Exchange believes a reduced minimum timeframe will provide the Exchange 
with greater flexibility in considering companies for listing, 
particularly in high growth industries where the Exchange believes it 
is possible for a company to demonstrate promising and attractive 
prospects over a relatively short time period.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the Act and the rules and regulations under the Act applicable to 
a national securities exchange and, in particular, the requirements of 
Section 6(b) of the Act.\4\ Specifically, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ 
in that it is designed to remove impediments to and perfect the 
mechanism of a free and open market.\6\
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ In approving this rule change, the Commission has considered 
the proposal's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
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    The Commission believes that the development and enforcement of 
transparent standards governing the listing of securities on an 
exchange is of critical importance to exchange markets and to the 
investing public. The Commission believes that a reduced minimum 
required operating history of two years should provide the Exchange 
with greater flexibility in considering companies for listing on the 
Exchange. In addition, the Commission notes that companies seeking to 
have their securities listed on the Exchange must also satisfy the 
remaining requirements of Section 101(b) of the Amex Company Guide, 
which include stockholders' equity of at least $4 million, a $15 
million aggregate market value of publicly held shares, and either a 
minimum of 800 public shareholders together with a minimum public 
distribution of 500,000 shares, or a minimum of 400 public shareholders 
together with a minimum public distribution of 1,000,000 shares.

IV. Conclusion

    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-Amex-00-31) is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-27616 Filed 10-26-00; 8:45 am]
BILLING CODE 2010-01-M