[Federal Register Volume 64, Number 202 (Wednesday, October 20, 1999)]
[Notices]
[Pages 56553-56554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27370]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42001; File No. SR-CHX-99-17]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Chicago Stock Exchange, Inc. Relating to Voluntary
Delisting Requirements
October 13, 1999.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 24, 1999, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to amend Article XXVIII, Rule 4 of the
Exchange's rules to modify the prerequisites to voluntary delisting
from the Exchange. Specifically, the proposed rule change would delete
the requirement that an issuer seeking to delist first obtain
shareholder approval, replacing the deleted provisions with a provision
requiring that the issuer first file with the Exchange a certified copy
of its board resolution authorizing delisting.
[[Page 56554]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange has proposed the rule change in order to ensure that
CHX-listed companies are not subject to more stringent voluntary
delisting requirements than those imposed by other exchanges. In prior
years, many exchanges included in their listing standards the
requirement that an issuer seeking to delist voluntarily first obtain
shareholder approval. Over time, this requirement has been deleted by
each exchange (other than the CHX) and generally has been replaced with
the requirement that the issuer demonstrate that its board of directors
has authorized delisting. See, e.g., Amex Rule 18; PCX Rule 3.4(b);
Phlx Rule 809.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) \3\ of the Act, in general, and section 6(b)(5) \4\
of the Act, in particular, in that it is designed to promote just and
equitable principles of trade, to remove impediments to, and to perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule change and Timing
for Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-
0609. Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room, located at the above address.
Copies of such filing will also be available for inspection and copying
at the principal office of the self-regulatory organization. All
submissions should refer to File No. SR-CHX-99-17 and should be
submitted by November 10, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-27370 Filed 10-19-99; 8:45 am]
BILLING CODE 8010-01-M
