Sec 44-2052. Exchange operation; commission rules

A. If instructed by the commission the director shall seek to facilitate the formation, pursuant to title 10, chapter 2, article 1, of one or more private corporations to operate one or more securities exchanges in Arizona.

B. The governing board of a corporation operating a securities exchange shall establish exchange procedures and rules including procedures and rules governing the conduct of members and prohibiting deceptive, manipulative, abusive or fraudulent practices. The procedures and rules established by the board shall be as similar as practicable to the procedures and rules established by the midwest stock exchange, incorporated. In its discretion, the board may deviate from the procedures and rules of the midwest stock exchange if it deems it necessary to do so.

C. The governing board of a corporation operating a securities exchange shall establish listing and delisting standards and criteria for the exchange. Such standards and criteria shall not be less stringent than the entry and maintenance standards, in effect on March 8, 1991, for companies listed on the national association of securities dealer automated quotation system. These standards and criteria may not be waived unless permitted by order of the commission. On certification by the president that a company desiring to list its securities for trading on the exchange meets all formal listing requirements, the board shall make a determination whether the proposed listing is in the public interest. In making its determination, the board shall consider the financial condition of the company and any probable changes in the company, the experience, quality, character and integrity of the management of the company, the company's present and anticipated markets for its products or services and competition in these markets, and the company's prior compliance with all applicable laws and rules. The board shall deny listing to any company that in its sole judgment is not suitable for listing. The board shall seek to repress manipulation, fraud and abusive practices in connection with the trading of listed or unlisted securities and to avoid instances of insolvency of companies whose securities are traded on the exchange.

D. The commission shall adopt rules for the regulation of any securities exchange located in this state. Shares of common stock whose price at the time of listing or initial unlisted trading is less than five dollars per share shall not be listed or traded on an Arizona securities exchange, unless permitted by order of the commission. A procedure, rule, listing or delisting standard or criteria for a securities exchange in Arizona adopted by the governing board pursuant to subsection B or C shall be consistent with rules adopted by the commission. All procedures, rules, standards and criteria adopted by the governing board of a corporation operating a securities exchange in Arizona pursuant to subsections B and C shall be submitted to and approved by the commission before they become effective.