TITLE 7.BANKING AND SECURITIES

Part 7. STATE SECURITIES BOARD

Chapter 111. SECURITIES EXEMPT FROM REGISTRATION

7 TAC §111.2

The Texas State Securities Board (Board) adopts an amendment to §111.2, concerning listed and designated securities, without changes to the proposed text as published in the October 20, 2006, issue of the Texas Register (31 TexReg 8603).

The amendment to subsection (a) removes an outdated reference to the Midwest Stock Exchange. New subsection (f) provides a definition of "national market system of the NASDAQ stock market."

Unnecessary language is removed and the rule reflects recent changes by the NASDAQ stock market.

No comments were received regarding adoption of the amendment.

Statutory authority: Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

Cross-reference to Statute: Texas Civil Statutes, Article 581-6.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 18, 2006.

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: January 7, 2007

Proposal publication date: October 20, 2006

For further information, please call: (512) 305-8303