[Federal Register Volume 69, Number 191 (Monday, October 4, 2004)]
[Notices]
[Page 59286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2468]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50458; File No. SR-NASD-2004-109]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Granting Approval to Proposed Rule Change To 
Increase the Initial Inclusion Requirements for Certain Foreign 
Securities Seeking To List on the Nasdaq SmallCap Market

September 28, 2004.
    On July 15, 2004, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq''), 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 modify Rule 4320 to apply the same, heightened 
quantitative initial inclusion standards upon non-Canadian foreign 
issuers that currently apply to domestic and Canadian issuers seeking 
to list on the Nasdaq SmallCap Market (``SmallCap Market''). 
Specifically, Nasdaq has added to the initial inclusion requirements of 
Rule 4320 a minimum bid price requirement of $4 and a market value 
requirement for publicly held shares of $5,000,000.
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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 August 18, 2004.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Release No. 50183 (August 11, 2004), 
69 FR 51341 (August 18, 2004).
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    The Commission finds that the proposed rule change is consistent 
with the provisions of Section 15A of the Act,\4\ in general, and with 
Section 15A(b)(6) of the Act,\5\ in particular, in that the proposal is 
designed to prevent fraudulent and manipulative acts and practices, 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. The Commission believes 
that applying the same quantitative initial inclusion standards upon 
non-Canadian foreign issuers seeking to list on the Nasdaq SmallCap 
market that currently apply to domestic and Canadian issuers is an 
appropriate change that raises the applicable standards and achieves 
consistent application of those standards among issuers.
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    \4\ 15 U.S.C. 78o-3.
    \5\ 15 U.S.C. 78o-3(b)(6).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-NASD-2004-109) be, 
and it hereby is, approved.
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    \6\ 17 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E4-2468 Filed 10-1-04; 8:45 am]
BILLING CODE 8010-01-P