§ 240.12a-7 Exemption of stock contained in standardized market baskets from section 12(a) of the Act.  


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  • (a) Any component stock of a standardized market basket shall be exempt from the registration requirement of section 12(a) of the Act, solely for the purpose of inclusion in a standardized market basket, provided that all of the following terms and conditions are met:

    (1) The standardized market basket has been duly approved by the Commission for listing on a national securities exchange pursuant to the requirements of section 19(b) of the Act; and

    (2) The stock is an NMS stock as defined in §242.600 of this chapter and is either:

    (i) Listed and registered for trading on a national securities exchange by the issuer or

    (ii) Quoted on the National Association of Securities Dealers Automated Quotation System;

    (b) When used in this rule, the term standardized market basket means a group of at least 100 stocks purchased or sold in a single execution and at a single trading location with physical delivery and transfer of ownership of each component stock resulting from such execution.

    [56 FR 28322, June 20, 1991, as amended at 70 FR 37618, June 29, 2005]

[53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec. 28, 1988, as amended at 67 FR 49223, July 30, 2002