[Federal Register Volume 69, Number 34 (Friday, February 20, 2004)]
[Notices]
[Page 7989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3667]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49225; File No. SR-PCX-2003-62]


Self-Regulatory Organizations; Pacific Exchange, Inc; Order 
Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to 
Initial Listing Requirements for Securities Listed Under the Tier I and 
Tier II Designations

February 12, 2004.
    On November 4, 2003, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange''), through its wholly owned subsidiary, PCX Equities, Inc. 
(``PCXE''), 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 PCXE Rules 5.2(c)(4) and 5.2(k)(4) to 
replace the term ``non-recurring'' with the term ``income from 
continuing operations,'' a term which is recognized under Generally 
Accepted Accounting Principles (``GAAP''). The proposed rule change 
also amends PCXE Rule 5.2(c)(4) to eliminate the requirement that an 
issuer have net income of at least $400,000, excluding non-recurring 
and extraordinary items. The Exchange submitted an amendment to the 
proposed rule change on December 17, 2003.\3\ The proposed rule change, 
as amended, was published for comment in the Federal Register on 
January 9, 2004.\4\ The Commission received no comment letters on the 
proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On December 17, 2003, the Exchange filed a Form 19b-4, which 
replaced the original filing in its entirety (``Amendment No. 1'').
    \4\ See Securities Exchange Act Release No. 49013 (December 31, 
2003), 69 FR 1610.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange \5\ 
and, particularly, section 6(b)(5) of the Act.\6\ The Commission 
believes that amending PCXE Rules 5.2(c)(4) and 5.2(k)(4) to replace 
the term ``non-recurring'' with the term ``income from continuing 
operations,'' a term which is recognized under GAAP, promotes just and 
equitable principles of trade and is not designed to permit unfair 
discrimination among issuers. The Commission notes that removing from 
PCXE Rule 5.2(c)(4) the requirement that an issuer have net income of 
at least $400,000, excluding non-recurring and extraordinary items, 
conforms to the initial listing requirements of another exchange.\7\ 
The Commission further notes that the proposed rule change merely 
clarifies the Exchange's current listing standards and is not designed 
to make the Exchange's listing standards more or less restrictive or 
alter the method upon which the Exchange calculates whether an issuer 
satisfies these standards.
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    \5\ In approving this proposed rule change, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ See American Stock Exchange LLC Company Guide section 
101(a)(2).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change, as amended, (SR-PCX-2003-62) 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. 04-3667 Filed 2-19-04; 8:45 am]
BILLING CODE 8010-01-P