[Federal Register Volume 70, Number 80 (Wednesday, April 27, 2005)]
[Notices]
[Pages 21831-21832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1987]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51591: File No. SR-Amex-2005-027]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Approving Proposed Rule Change Relating to the Use of Certain 
Consolidated Tape Association Financial Status Indicator Fields and 
Related Disclosure Obligations

April 21, 2005.
    On February 25, 2005, the American Stock Exchange LLC (``Amex'') 
submitted to the Securities and Exchange Commission (``Commission'' or 
``SEC''), 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 relating to the use of certain Consolidated Tape Association 
financial status indicator fields and related disclosure obligations. 
The Commission published the proposed rule change for comment in the 
Federal Register on March 21, 2005.\3\ On March 25, 2005, the Amex 
filed Amendment No. 1 to the proposed rule change.\4\ The Commission 
did not receive any comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 51367 (March 14, 2005), 
70 FR 13555.
    \4\ Amendment No. 1 made technical changes to the proposed rule 
change and does not require notice.
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder that are applicable to a national 
securities

[[Page 21832]]

exchange.\5\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\6\ which 
requires, among other things, that the rules of the Amex be designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, and, in general, to protect 
investors and the public interest. The Commission believes that the 
proposal will add greater transparency and disclosure to the investing 
community. The proposed rule change provides that the Amex will utilize 
certain of the financial status indicator fields in CTS and CQS \7\ to 
identify listed companies that (i) are noncompliant with continued 
listing standards and/or (ii) are delinquent with respect to a required 
federal securities law periodic filing. It also provides that the Amex 
will post a list of issuers subject to each indicator on its website. 
In addition, it will require an indicator to be disseminated over the 
High Speed Tape with respect to an issuer that has filed or announced 
it's intent to file for reorganization relief under the bankruptcy laws 
(or an equivalent foreign law). Finally, the proposal amends Sections 
401 and 1009 of the Amex Company Guide to explicitly clarify that 
issuance of a press release is required when a listed company is 
notified that it is noncompliant with the applicable continued listing 
standards. The Commission believes that the proposal will increase 
disclosure to investors when issuers are noncompliant with continued 
listing standards and/or are delinquent with respect to a required 
federal securities law periodic filing.
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    \5\ In approving the proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ CTS and CQS, which are operated by the CTA, collect last-
sale prices and current bid/ask quotations, respectively, with 
associated volumes for all exchange-listed equities. All trades and 
quotations in Amex-listed equities, regardless of the market center 
on which such equities are traded or quoted, are reported to CTS and 
CQS and disseminated on Tape B (also known as Network B).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Amex-2005-27) 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. E5-1987 Filed 4-26-05; 8:45 am]
BILLING CODE 8010-01-P