The PIPEs Report - June 19, 2007

SEC Begins Makeover but Spares Options Market Maker Exemption

The Securities and Exchange Commission last week eliminated Regulation SHO’s controversial grandfather provision that allowed delivery failures stemming from certain short sales to persist indefinitely. The unanimous vote to end the exemption in Rule 203 of Reg SHO took place after the commission received roughly 900 comment letters in the nearly year-long time span since it originally proposed to get rid of the provision last July. Full Story

Increased Eligibility May Limit Traditional PIPE Volume but Boost Overall Activity

Approximately one-tenth of the dollar volume of PIPEs in 2006 on selected exchanges would have been eligible for short form registration under the Securities and Exchange Commission’s new proposed guidelines, assuming public floats have not varied substantially. Legal experts agree that it is a positive change for public companies and that it will likely take affect in similar form to how it has been proposed. Full Story

Foreign Companies May Get Easier Access to U.S. Markets

In a roundtable discussion last week, members of the Securities and Exchange Commission and market participants discussed the possibilities for international “mutual recognition” of securities laws, which could make national borders more permeable to the flow of PIPE capital. Full Story

• NASD Seeks Feedback on Proposed PPM Reform
• Beijing Med-Pharm Reaches Nasdaq Global
• Intelligentias Sees Capital in Vision
• SEC No Longer Delaying Sarbox Compliance
• SEC Files Charges Against One of Its Own
• Hirings & Firings