PERMANENT RULES
FINANCIAL INSTITUTIONS
(Securities Division)
Date of Adoption: March 1, 2004.
Purpose: Amend WAC 460-42A-081 to create a secondary trading exemption for securities listed on the Toronto Stock Exchange (TSE). The exemption would be limited to nonissuer transactions and companies relying on the exemption must be reporting companies in Canada for 180 days prior to any transaction in reliance upon the exemption. The amendment also allows the director to exempt, by rule or order, other foreign exchanges for purposes of the exemption.
Citation of Existing Rules Affected by this Order: Amending WAC 460-42A-081.
Statutory Authority for Adoption: RCW 21.20.450, 21.20.310(8).
Adopted under notice filed as WSR 03-23-103 on November 18, 2003.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: No rule
may be made unless the director of the Department of Financial
Institutions finds that the action is necessary or appropriate
in the public interest or for the protection of investors and
consistent with the purposes fairly intended by the policy and
provisions of chapter 21.20 RCW. The director hereby makes
such a finding with respect to this proposal.
Effective Date of Rule:
Thirty-one days after filing.
March 5, 2004
Helen P. Howell
Director
OTS-6741.1
AMENDATORY SECTION(Amending WSR 96-11-016, filed 5/6/96,
effective 6/6/96)
WAC 460-42A-081
Exchange and national market system
exemption.
(1) Any securities listed or designated, or
approved for listing or designation upon notice of issuance,
on (a) the New York Stock Exchange, (b) the American Stock
Exchange, (c) the NASDAQ/NMS interdealer quotation system
pursuant to the Memorandum of Understanding between the North
American Securities Administrators Association (NASAA) and the
National Association of Securities Dealers (NASD) adopted
April 28, 1990, (d) the Chicago Board Options Exchange
pursuant to the Memorandum of Understanding between NASAA and
the Chicago Board Options Exchange dated May 30, 1991, (e)
Tier I on the Pacific Stock Exchange pursuant to the
Memorandum of Understanding between NASAA and the Pacific
Stock Exchange dated October 12, 1994, or (f) Tier I on the
Philadelphia Stock Exchange pursuant to the Memorandum of
Understanding between NASAA and the Philadelphia Stock
Exchange dated October 12, 1994, any other security of the
same issuer which is of senior or substantially equal rank,
any security called for by subscription rights or warrants so
listed or approved, or any warrant or right to purchase or
subscribe to any of the foregoing is exempt under RCW 21.20.310(8). ((The administrator may by order withdraw this
exemption as to an exchange or interdealer quotation system or
a particular security when necessary in the public interest
for the protection of investors.))
(2) For the purposes of nonissuer transactions only, any security listed or approved for listing upon notice of issuance on (a) the NASDAQ/NMS interdealer quotation system, (b) the New York Stock Exchange, (c) the American Stock Exchange, (d) the Chicago Stock Exchange, (e) the Chicago Board Options Exchange, (f) the Pacific Stock Exchange, (g) the Philadelphia Stock Exchange, or any other stock exchange registered with the federal securities and exchange commission and approved by the director; any other security of the same issuer which is of senior or substantially equal rank; any security called for by subscription rights or warrants so listed or approved; or any warrant or right to purchase or subscribe to any of the foregoing, is exempted under RCW 21.20.310(8).
(3)(a) For the purposes of nonissuer transactions only, any security meeting the following requirements is exempted under RCW 21.20.310(8):
(i) The issuer of the security is a reporting issuer in a foreign country or jurisdiction designated in (b) of this subsection, or by rule or order of the director, and has been subject to continuous reporting requirements in such foreign country for not less than one hundred eighty days before the transaction; and
(ii) The security is listed on such foreign country's securities exchange which has been designated in (b) of this subsection, or by rule or order of the director, or is a security of the same issuer which is of senior or substantially equal rank to such listed security or is a warrant or right to purchase or subscribe to any of the foregoing.
(b) For purposes of (a) of this subsection, Canada together with its provinces and territories is a designated foreign jurisdiction and the Toronto Stock Exchange is a designated securities exchange.
(4) The director may by order withdraw the exemptions provided by subsection (1), (2), or (3) of this section as to an exchange or interdealer quotation system or a particular security when necessary in the public interest for the protection of investors.
[Statutory Authority: RCW 21.20.450. 96-11-016, § 460-42A-081, filed 5/6/96, effective 6/6/96. Statutory Authority: RCW 21.20.310(8) and 21.20.450. 91-04-010, § 460-42A-081, filed 1/25/91, effective 2/25/91; 89-21-032 (Order SDO-161-89), § 460-42A-081, filed 10/11/89, effective 11/11/89; 82-18-037 (Order SDO-100-82), § 460-42A-081, filed 8/27/82.]