Federal Register / Vol. 61, No. 119 / Wednesday, June 19, 1996 / Notices 31209

10See Securities Exchange Act Release No. 35571,

supra note 3.

11 15 U.S.C. 78s(b)(2).

12 17 CFR 200.30–3(a)(12).

the bona fides of the company and its

past trading history. In this regard, the

Exchange previously proposed, and the

Commission approved, amendments to

its initial listing standards that provided

for an alternate method by which a

company could meet the ‘‘demonstrated

earnings’’ listing standard, increased the

numerical criteria for the aggregate

market value of both publicly-held

shares and net tangible assets, and

adopted an alternate shareholder

distribution standard for companies

whose shares are very actively traded.10

With this rule proposal, the Exchange

proposes to amend the continued listing

criteria for common stock to reflect the

amendments made to the initial listing

standards in 1995. The Commission

believes that adequate maintenance

standards are of equal importance to the

development of adequate standards for

initial inclusion on an exchange. The

Commission notes that once an issue

has been initially approved for listing,

the Exchange must monitor continually

the status and trading characteristics of

that issue to ensure that it continues to

meet exchange standards for trading

depth and liquidity.

Specifically, with respect to the new

adjusted net income criteria, the

Commission believes that it is

appropriate to establish specific

continued listing criteria that correlate

to the alternate method for satisfying the

demonstrated earnings requirement of

the initial listing standard. Under the

new standards, companies that are

valued on a ‘‘cash flow’’ basis must have

at least an aggregate market value of

$25,000,000 (which is higher than the

proposed standard of $12,000,000

aggregate market value for other

companies) as well as satisfy an average

adjusted net income for the past three

years of $6,500,000.

Under the proposal, the Exchange is

also increasing the minimum

requirements for aggregate market value

of publicly-held shares from $5,000,000

to $8,000,000; aggregate market value of

shares outstanding (excluding treasury

stocks) from $8,000,000 to $12,000,000;

and net tangible assets available to

common stock from $8,000,000 to

$12,000,000. The Commission believes

that these substantial increases

significantly upgrade the NYSE’s

continued listing criteria and strengthen

the Exchange’s securities listing process

by adding continued listing standards

that more appropriately correspond to

the initial listing standards. Moreover,

the Commission believes that the

stringent maintenance criteria,

established by the rule proposal, should

help to ensure the stability of the

marketplace, as well as protect

investors, by enabling the NYSE to

identify listed companies that may not

have sufficient liquidity and financial

resources to warrant continued listing.

This, in turn, will allow the NYSE to

take appropriate action.

Finally, the NYSE proposes to amend

the investor base and public float

requirements of its continued listing

criteria. Although the minimum number

of investors required has decreased, the

Commission believes that establishing a

minimum of at least 400 total

stockholders in conjunction with an

average monthly trading volume of at

least 100,000 shares will not

significantly weaken the high standards

that the Exchange wants to maintain.

The requirement for an average monthly

trading volume will ensure that listed

companies with a smaller shareholder

base should have sufficient interest to

support a liquid market. Moreover, the

Exchange requirement that listed

companies have at least 1,200 total

stockholders if the average monthly

trading volume is less than 100,000 also

will ensure that there is sufficient

shareholder base to support a liquid

market. Although the Exchange

previously required at least 1,200

round-lot holders, the Commission

believes that the new shareholder

distribution standard in conjunction

with the updated numerical criteria will

permit the Exchange to monitor its

listed companies to ensure continued

depth and liquidity.

In conclusion, based upon the

analysis set forth above, the

Commission believes this rule change

will continue to ensure that NYSE listed

companies have adequate depth and

liquidity to support trading on the

NYSE. Accordingly, the Commission

believes that this rule change adequately

protects investors and the public

interest.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,11 that the

proposed rule change (SR–NYSE–96–

07) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–15576 Filed 6–18–96; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Hartford District Advisory Council

Meeting, Public Meeting

The U.S. Small Business

Administration, Hartford District

Advisory Council will hold a public

meeting on Monday, July 1, 1996, at

8:30 a.m. at 2 Science Park, New Haven,

Connecticut 06511, to discuss matters as

may be presented by members, staff of

the U.S. Small Business Administration,

or others present.

For further information, write or call

Ms. Jo-Ann Van Vechten, District

Director, U.S. Small Business

Administration, 330 Main Street,

Hartford, Connecticut, (860) 240–4670.

Dated: June 12, 1996.

Michael P. Novelli,

Director, Office of Advisory Council.

[FR Doc. 96–15499 Filed 6–18–96; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Commercial Space Transportation

Advisory Committee—ReEstablishment

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of Commercial Space

Transportation Committee Reestablishment.

SUMMARY: Notice is hereby given of the

re-establishment of the Commercial

Space Transportation Advisory

Committee. The committee reviews

matters relating to the commercial space

transportation industry and provides

information, advice, and

recommendations on commercial space

transportation activities. The functions

of the committee are solely advisory and

the committee will comply with the

provisions of the Federal Advisory

Committee Act.

The Secretary of Transportation has

determined that the use of the

Commercial Space Transportation

Advisory Committee is in the public

interest in connection with the

performance of duties imposed on FAA

by law. Meetings of the committee will

be open to the public.

FOR FURTHER INFORMATION CONTACT:

Brenda Parker (AST–100), Office of the

Associate Administrator for Commercial

Space Transportation, 400 7th Street,

SW., Washington, DC, 20591, telephone

(202) 366–2932.