[Federal Register Volume 68, Number 7 (Friday, January 10, 2003)]
[Notices]
[Pages 1494-1495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-459]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47119; File No. SR-Amex-2002-97]


Self Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change by the American Stock Exchange LLC Relating to 
Initial and Continued Listing Standards

January 3, 2003.
    On November 20, 2002, the American Stock Exchange LLC (``Amex'') 
filed with 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 to 
amend sections 101, 102, and 1003 of the Amex Company Guide to modify 
initial and continued listing standards.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on December 4, 2002.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 46887 (November 22, 
2002), 67 FR 72239 (December 4, 2002).
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with section 6(b)(5) of the Act \6\ 
because it is designed to promote just and equitable principles of 
trade, to remove impediments to, and perfect the mechanism of a free 
and open market and, in general, to protect investors and the public 
interest.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange proposes to adopt a new initial listing standard (in 
addition to existing standards) which is designed to permit an 
assessment of an issuer's suitability for listing on the basis of 
compliance with total market capitalization or total assets and 
revenues in substitution of shareholders' equity. The Amex also 
proposes that corresponding revisions be adopted to the continued 
listing standards to provide that a listed company will not be subject 
to delisting (assuming compliance with other applicable standards) even 
if it has experienced net losses or losses from continuing operations, 
and does not satisfy existing equity requirements,\7\ if it is in 
compliance with following requirements:
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    \7\ Section 1003(a) of the Amex Company Guide provides that a 
listed company which has sustained losses in two of its three, three 
of its four, or five of its most recent fiscal years will be subject 
to delisting if its stockholders' equity is less than $2 million, $4 
million or $6 million, respectively.
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    [sbull] Total value of market capitalization: $50 million, or
    [sbull] Total assets and revenue: $50 million each (in most recent 
fiscal year or two of last three most recently completed fiscal years), 
and
    [sbull] At least 1,100,000 shares publicly held, a market value of 
publicly held shares of at least $15,000,000 and 400 round lot 
shareholders.
    The Commission believes that the proposed rule change will allow 
for the evaluation of an issuer's listing

[[Page 1495]]

eligibility against additional comprehensive criteria. The Commission 
notes that the proposal is not materially different from standards in 
place at other marketplaces; both the New York Stock Exchange, Inc. and 
The Nasdaq Stock Market, Inc. listing standards contain a variety of 
alternative qualifications standards, including standards based on 
measures of market capitalization, revenue and assets.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Amex-2002-97) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-459 Filed 1-9-03; 8:45 am]
BILLING CODE 8010-01-P