Various and Sundry From the Last Week

On Friday the Securities and Exchange Commission released a Small Entity Compliance Guide (as required by the Small Business Regulatory Fairness Act) summarizing and explaining the requirements of the recently finalized Mine Safety Disclosure rules.

Revisions to the Definition of Covered Securities

The Commission also issued a final rule on Friday designating certain securities listed on the BATS Exchange as “covered securities” for purposes of Section 18 of the Securities Act.

Covered securities are exempt from state “blue sky” registration requirements, instead having to comply with the exchange listing standards and federal securities laws, rules and regulations related to the registration and sale of securities.

Once the final rule becomes effective (30 days from its publication in the federal register) the list of covered securities will include those listed, or authorized for listing, on:

  • New York Stock Exchange;
  • NYSE Amex LLC;
  • National Market System of the Nasdaq Stock Market;
  • Tier I of the NYSE Arca, Inc.;
  • Tier I of the Nasdaq OMX PHLX LLC;
  • Chicago Board Options Exchange, Incorporated;
  • Options listed on the International Securities Exchange, LLC;
  • The Nasdaq Capital Market; and
  • Tier I and Tier II of BATS Exchange, Inc.

Nasdaq Updates it Initial Listing Standard

On Tuesday the Commission published notice of a proposed rule change by Nasdaq. The exchange is seeking to adopt a $2 or $3 initial listing bid price as an alternative to the current $4 initial listing bid price on its Nasdaq Capital Market. The change would allow the Nasdaq Capital Market to compete for listings with NYSE Amex, the only other exchange that currently has a $2 or $3 initial listing bid price.

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