Md. Code Regs. 02.02.04.06

Current through Register Vol. 51, No. 24, December 2, 2024

Section 02.02.04.06 - Designated Exchange Exemption

A. Definitions.

(1) "CBOE" means The Chicago Board Options Exchange.

(2) "NASDAQ/NMS" means the National Association of Securities Dealers Automated Quotations/National Market System.

(3) "Release" means Securities Act Release 33-6810 published at 53 FR 52550 (1988), which is incorporated by reference.

(4) "SEC" means the Securities and Exchange Commission.

B. Exempt Securities. The following securities shall be exempted from the provisions of the Maryland Securities Act, Corporations and Associations Article, §§ 11-205 and 11-501, Annotated Code of Maryland:

(1) Any security listed or approved for listing upon notice of issuance on NASDAQ/NMS, provided that this designation may be revoked if the Commissioner finds that the listing standards have been so changed or insufficiently applied that the protection of investors contemplated by the standards for listing in the Release is no longer afforded;

(2) Any security listed or approved for listing upon notice of issuance on the CBOE, provided that this designation may be revoked if the Commissioner finds that the:

(a) Listing standards have been so changed or insufficiently applied that the protection of investors contemplated by the standards for listing in the Release is no longer afforded; or

(b) CBOE has failed to promptly notify the Commissioner in writing that it has:

(i) Made a rule filing with the SEC proposing to list a type of security not provided for in the listing standards contained in the Release and has failed to provide the Commissioner with a copy of the rule filing, or

(ii) Proposed to list a security under its listing standards for "other securities" that raises significant new regulatory issues requiring a rule filing with the SEC and has failed to provide the Commissioner with a copy of the rule filing;

(3) Any other security of the same issuer that is of senior or substantially equal rank;

(4) Any security called for by subscription rights or warrants that are exempted under §B(1) or (2) of this regulation; and

(5) Any warrant or right to purchase or subscribe to any security that is exempted under §B(1) or (2) of this regulation.

Md. Code Regs. 02.02.04.06

Regulations .06 adopted effective November 11, 1991 (18:22 Md. R. 2393)
Regulations Regulation .12 amended and recodified to .06 April 15, 1991 (18:7 Md. R. 770)