§ 240.12a-6 Exemption of securities underlying certain options from section 12(a).  


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  • (a) When used in this rule, the following terms shall have the meanings indicated unless the context otherwise requires:

    (1) The term option shall include any put, call, spread, straddle, or other option or privilege of buying a security from or selling a security to another without being bound to do so, but such term shall not include any such option where the writer is: The issuer of the security which may be purchased or sold upon exercise of the option, or is a person that directly, or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with such issuer;

    (2) The term underlying security means a security which relates to or is the subject of an option.

    (b) Any underlying security shall be exempt from the operation of section 12(a) of the Act if all of the following terms and conditions are met:

    (1) The related option is duly listed and registered on a national securities exchange;

    (2) The only transactions on such exchange with respect to such underlying securities consist of the delivery of and payment for such underlying securities pursuant to the terms of such options relating to the exercise thereof; and

    (3) Such underlying security is (i) duly listed and registered on another national securities exchange at the time the option is issued; or (ii) duly quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) at the time the option is issued.

    (Secs. 3(a)(12); 48 Stat. 882, 84 Stat. 718, 1435, 1499 (15 U.S.C. 78(c)))

    [38 FR 11449, May 8, 1973, as amended at 50 FR 20203, May 15, 1985]