81 FR 15585 - Self-Regulatory Organizations; NYSE MKT LLC; Order Approving Proposed Rule Change Amending the NYSE MKT Company Guide To Create a New Section 146 Under Which a Certain Category of Newly Listed Issuers Would Be Entitled To Receive Complimentary Products and Services From the Exchange
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 56 (March 23, 2016)
Federal Register Volume 81, Issue 56 (March 23, 2016)
| Page Range | 15585-15587 | |
| FR Document | 2016-06515 |
[Federal Register Volume 81, Number 56 (Wednesday, March 23, 2016)] [Notices] [Pages 15585-15587] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-06515] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77401; File No. SR-NYSEMKT-2016-12] Self-Regulatory Organizations; NYSE MKT LLC; Order Approving Proposed Rule Change Amending the NYSE MKT Company Guide To Create a New Section 146 Under Which a Certain Category of Newly Listed Issuers Would Be Entitled To Receive Complimentary Products and Services From the Exchange March 17, 2016. I. Introduction On January 14, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') filed with the Securities and Exchange Commission (``Commission'') pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the NYSE MKT Company Guide (``Company Guide'') to create a new Section 146 under which a certain category of newly listed issuers (``Eligible New Listings'') would be entitled to receive complimentary products and services from the Exchange. The proposed rule change was published for comment in the Federal Register on February 3, 2016.\3\ No comment letters were received in response to the Notice. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 76996 (January 28, 2016), 81 FR 5803 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change The Exchange proposes to adopt Section 146 of the Company Guide to offer the following complimentary products and services to Eligible New Listings \4\ on the Exchange: Web-hosting products and services (with an approximate commercial value of $16,000 per year), web-casting services (with an approximate commercial value of $6,500 per year), whistleblower hotline services (with an approximate commercial value of $4,000 per year), news distribution products and services (with an approximate commercial value of $20,000 per year), and corporate governance tools (with an approximate commercial value of $15,000 per year).\5\ --------------------------------------------------------------------------- \4\ For the purposes of the proposed rule, the term ``Eligible New Listing'' means (i) any U.S. company that lists common stock on the Exchange for the first time and any non-U.S. company that lists an equity security on the Exchange under Section 101 or 110 of the Company Guide for the first time, regardless of whether such U.S. or non-U.S. company conducts an offering, (ii) any U.S. or non-U.S. company that transfers its listing of common stock or equity securities, respectively, to the Exchange from another national securities exchange and (iii) any U.S. or non-U.S. company emerging from a bankruptcy, spinoff (where a company lists new shares in the absence of a public offering), and carve-out (where a company carves out a business line or division, which then conducts a separate initial public offering). For purposes of the proposed rule, ``equity securities'' means common stock or common share equivalents such as ordinary shares, New York shares, global shares, American Depository Receipts, or Global Depository Receipts. See proposed Section 146 of the Company Guide. \5\ See proposed Section 146 of the Company Guide. --------------------------------------------------------------------------- The Exchange proposes to provide Eligible New Listings with such products and services for a period of 24 calendar months, which period would begin on the date of listing on the Exchange.\6\ Notwithstanding the foregoing, however, the proposal provides that if an Eligible New Listing begins to use a particular product or service under proposed Section 146 within 30 days of its initial listing date, the complimentary period will begin on the date of first use.\7\ Under the proposal, Eligible New Listings may elect to receive some or all of the products and services for which they are eligible under Section 146 of the Company Guide and are under no obligation to accept any product or service for which they are eligible.\8\ --------------------------------------------------------------------------- \6\ Id. \7\ Id. \8\ Id. --------------------------------------------------------------------------- The Exchange states that the specific products and services offered by the Exchange will be developed by the Exchange or by third-party vendors.\9\ The Exchange states that NYSE Governance Services, an entity that is owned by the Exchange's parent company that provides corporate governance, risk, and compliance services to its clients, which include companies listed on the Exchange, will offer and develop the corporate governance tools provided to Eligible New Listings, but will not provide any other service related to the proposed rule.\10\ --------------------------------------------------------------------------- \9\ See Notice, supra note 3, at 5804. \10\ Id. In its filing, the Exchange stated its belief that NYSE Governance Services is not a ``facility'' of the Exchange as defined in 15 U.S.C. 78c(a)(2), and noted that its proposed rule change is being filed with the Commission under Section 19(b)(2) of the Act because it relates to services offered in connection with a listing on the Exchange. See id. at 5804 n.6. The Commission notes that the definition of a ``facility'' of an exchange is broad under the Act, and ``includes its premises, tangible or intangible property whether on the premises or not, any right to the use of such premises or property or any service thereof for the purpose of effecting or reporting a transaction on an exchange . . . and any right of the exchange to the use of any property or service.'' The Commission further notes that any determination as to whether a service or other product is a facility of an exchange requires an analysis of the particular facts and circumstances. --------------------------------------------------------------------------- The Exchange proposes to codify in proposed Section 146 of the Company Guide that all companies listed on the Exchange are entitled to certain complimentary products and services via the Exchange's Market Access Center, as described on the Exchange's Web site.\11\ The Exchange represents that all issuers listed on the Exchange have access to the Exchange's Market Access Center on the same basis and that the products and services currently available through the Exchange's Market Access Center have a commercial value of approximately $50,000.\12\ --------------------------------------------------------------------------- \11\ See Notice, supra note 3, at 5804. According to the Exchange, the Market Access Center is a market information analytics platform that is a combination of technology-enabled market intelligence insight and a team of highly skilled market professionals. According to the Exchange, the platform was created to provide issuers with better market insight and information across all exchanges and trading venues and includes products and services that were (i) developed by the Exchange using proprietary data and/ or intellectual property or (ii) built by a third-party expressly for the Exchange's listed companies. According to the Exchange, within this platform all issuers have access to tools and information related to market intelligence, education, investor outreach, media visibility, corporate governance, and advocacy initiatives. For example, the Market Access Center offers daily trading summaries, a trading alert system highlighting user-defined trading or market events, and a Web site featuring timely content for Exchange-listed senior executives featuring trading information, market data, and institutional ownership. Id. \12\ See id. --------------------------------------------------------------------------- III. Discussion and Commission Findings The Commission has carefully reviewed the proposed rule change and finds that it is consistent with the requirements of Section 6 of the Act.\13\ [[Page 15586]] Specifically, the Commission finds that the proposal is consistent with Sections 6(b)(4) \14\ and 6(b)(5) of the Act \15\ in particular, in that the proposed rule is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Exchange members, issuers, and other persons using the Exchange's facilities, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. Moreover, the Commission believes that the proposed rule change is consistent with Section 6(b)(8) of the Act \16\ in that it does not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f. In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \14\ 15 U.S.C. 78f(b)(4). \15\ 15 U.S.C. 78f(b)(5). \16\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Commission believes that the proposed rule change, which would permit the Exchange to provide additional complimentary products and services to Eligible New Listings, as well as services to all listed companies through the Exchange's Market Access Center, as described above,\17\ is appropriate and consistent with the Act. The Commission believes that by describing in the Company Guide the products and services available to listed companies and the values of the products and services, the Exchange is adding greater transparency to its rules and the fees applicable to such companies. This will help to ensure that individual listed companies are not given specially negotiated packages of products and services to list or remain listed that would raise unfair discrimination issues under the Act. --------------------------------------------------------------------------- \17\ See supra notes 5 and 11-12 and accompanying text. --------------------------------------------------------------------------- The Commission notes that while all listed companies will receive some services from the Exchange via the Exchange's Market Access Center, some listed companies will receive additional products and services for 24 months from the date of listing based on their status as an Eligible New Listing. The Commission notes that Section 6(b)(5) of the Act does not require that all issuers be treated the same; rather, the Act requires that the rules of an exchange not unfairly discriminate between issuers. The Commission believes that the Exchange has provided a sufficient basis for its different treatment of Eligible New Listings and that this portion of the Exchange's proposal meets the requirements of the Act in that it reflects competition between exchanges, with the Exchange offering additional products and services to those companies choosing to list for the first time on the Exchange or transferring their listing from a competing exchange. In making this determination, the Commission notes that the provision of services under the proposal is for a limited duration and that the Exchange has provided a reasonable basis for deciding to treat Eligible New Listings differently from other listed companies. Among other things, the Exchange has stated that the offered products and services will help to ease the transition of these companies that are becoming public for the first time or are transferring their listing to a new exchange.\18\ In addition, all Eligible New Listings will receive the same package of services. Further, the Exchange states that it hopes to better compete with the Nasdaq Global Market for listings in the future.\19\ The Commission has also previously approved proposals providing different services to newly-listed issuers, including those transferring their listing from another exchange, and has found this consistent with Sections 6(b)(4) and 6(b)(5) of the Act.\20\ The Commission notes that, according to the Exchange, Nasdaq offers similar products and services to new listings and those companies transferring their listing from the New York Stock Exchange.\21\ Accordingly, based on the factors noted above, the Commission believes that the proposed rule changes to the Company Guide are consistent with the requirements of the Act and, in particular, that the products and services and their commercial value are equitably allocated among issuers consistent with Section 6(b)(4) of the Act, and the rule does not unfairly discriminate between issuers consistent with Section 6(b)(5) of the Act. --------------------------------------------------------------------------- \18\ See Notice, supra note 3, at 5805. Specifically, the Exchange states that the Web-hosting products and services will assist Eligible New Listings in engaging with their shareholders by providing them with a Web site that contains business content that can be viewed by investors; the web-casting services allow listed companies to communicate with shareholders in connection with their quarterly earnings release process; the whistleblower hotline will assist Eligible New Listings in complying with, among other things, the requirements of the Sarbanes-Oxley Act, Foreign Corrupt Practices Act, and UK Bribery Act; the news distribution products and services will assist Eligible New Listings in complying with Exchange disclosure requirements; and the corporate governance tools will help educate the board of directors of each Eligible New Listing about corporate governance best practices. See id. at 5804. \19\ See id. at 5804. \20\ See Securities Exchange Act Release Nos. 76127 (October 9, 2015), 80 FR 62584 (October 16, 2015) (order approving SR-NYSE-2015- 36); 72669 (July 24, 2014), 79 FR 44234 (July 30, 2014) (order approving NASDAQ-2014-058) (``Nasdaq Order''); 65963 (December 15, 2011), 76 FR 79262 (December 21, 2011) (order approving SR-NASDAQ- 2011-122). \21\ The Commission notes that the Nasdaq Global Market offers new listings and companies transferring their listing from the New York Stock Exchange complimentary products and services, while the Nasdaq Capital Market does not offer similar services. See Nasdaq Stock Market Rule IM-5900-7(a). The Exchange states that it currently competes with the Nasdaq Capital Market and, in some cases, with the Nasdaq Global Market. See Notice, supra note 3, at 5804. While we recognize that Nasdaq does not currently provide services to transfers from NYSE MKT, based on the current competitive environment for listings it is not unreasonable for NYSE MKT to want to offer services to companies transferring from another national securities exchange to attract new listings, and is consistent with the Act as long as such offerings, among other things, under Section 6(b)(5), do not discriminate between issuers. --------------------------------------------------------------------------- The Commission also believes that it is consistent with the Act for the Exchange to allow the complimentary period for a particular service offered to Eligible New Listings to begin on the date of first use if a company begins to use the service within 30 days after the date of listing. According to the Exchange, companies listing on the Exchange for the first time often require a period of time after listing to complete the contracting and training process with vendors providing the complimentary products and services.\22\ Therefore, many companies are not able to begin using the suite of products offered to them immediately on the date of listing.\23\ The Commission notes that this proposed change is substantially similar to Nasdaq Rule IM-5900-7, which also allows a company to begin using services within 30 days of listing.\24\ As noted in the Nasdaq Order, the Commission believes that this change would provide only a short window of additional time to allow companies to finalize their contracts for the complimentary products and services, and that this additional time would only be available to companies that have already determined to list on the Exchange.\25\ --------------------------------------------------------------------------- \22\ See Notice, supra note 3, at 5805. \23\ See id. \24\ See Nasdaq Order, supra note 20. \25\ The Commission expects the Exchange to track the start (and end) date of each free service. --------------------------------------------------------------------------- The Exchange will provide the corporate governance tools to Eligible New Listings through an affiliated service provider, and all other products and services will be developed by the Exchange or by third-party vendors. The Exchange has represented that listed companies that are offered products under Section 146 of the Company Guide are under no obligation to accept them and a company's listing on the Exchange is not conditioned upon acceptance of any product or service. Moreover, the Exchange represents that, [[Page 15587]] from time to time, companies elect to purchase products and services from other vendors at their own expense rather than accepting comparable products and services offered by the Exchange.\26\ --------------------------------------------------------------------------- \26\ See Notice, supra note 3, at 5805. --------------------------------------------------------------------------- The Commission believes that the Exchange is responding to competitive pressures in the market for listings in making this proposal. Specifically, the Exchange has represented that it faces competition in the market for listing services and that it competes in part by improving the quality of the services that it offers to listed companies.\27\ The Exchange states that by offering products and services on a complimentary basis and ensuring that it is offering the services most valued by its listed issuers, it improves the quality of the services that listed companies receive.\28\ Further, the Exchange states that it hopes to better compete with the Nasdaq Global Market, which offers a comparable suite of complimentary products and services to new listings and certain transfers, and expects the proposed rule change to enable the Exchange to more effectively compete with this market for listings.\29\ Accordingly, the Commission believes that the proposed rule reflects the current competitive environment for exchange listings among national securities exchanges, and is appropriate and consistent with Section 6(b)(8) of the Act.\30\ --------------------------------------------------------------------------- \27\ See id. \28\ See id. \29\ See id. at 5804-05. See also Nasdaq Stock Market Rule IM- 5900-7(b). \30\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\31\ that the proposed rule change (SR-NYSEMKT-2016-12), be, and hereby is, approved. --------------------------------------------------------------------------- \31\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\32\ --------------------------------------------------------------------------- \32\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-06515 Filed 3-22-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 56 / Wednesday, March 23, 2016 / Notices 15585
and size of Board classes proposed by offer the following complimentary services to its clients, which include
the MSRB in the Proposing Release.53 products and services to Eligible New companies listed on the Exchange, will
The Commission’s approval of the Listings 4 on the Exchange: Web-hosting offer and develop the corporate
proposed rule change is premised on the products and services (with an governance tools provided to Eligible
MSRB executing the Transition Plan. approximate commercial value of New Listings, but will not provide any
$16,000 per year), web-casting services other service related to the proposed
V. Conclusion
(with an approximate commercial value rule.10
It is therefore ordered, pursuant to of $6,500 per year), whistleblower The Exchange proposes to codify in
Section 19(b)(2) of the Act,54 that the hotline services (with an approximate proposed Section 146 of the Company
proposed rule change (SR–MSRB–2016– commercial value of $4,000 per year), Guide that all companies listed on the
01) be, and hereby is,approved. news distribution products and services Exchange are entitled to certain
For the Commission, pursuant to delegated (with an approximate commercial value complimentary products and services
authority.55 of $20,000 per year), and corporate via the Exchange’s Market Access
Robert W. Errett, governance tools (with an approximate Center, as described on the Exchange’s
Deputy Secretary. commercial value of $15,000 per year).5 Web site.11 The Exchange represents
[FR Doc. 2016–06452 Filed 3–22–16; 8:45 am]
The Exchange proposes to provide that all issuers listed on the Exchange
Eligible New Listings with such have access to the Exchange’s Market
BILLING CODE 8011–01–P
products and services for a period of 24 Access Center on the same basis and
calendar months, which period would that the products and services currently
SECURITIES AND EXCHANGE begin on the date of listing on the available through the Exchange’s Market
COMMISSION Exchange.6 Notwithstanding the Access Center have a commercial value
foregoing, however, the proposal of approximately $50,000.12
[Release No. 34–77401; File No. SR– provides that if an Eligible New Listing
NYSEMKT–2016–12] III. Discussion and Commission
begins to use a particular product or
Findings
Self-Regulatory Organizations; NYSE service under proposed Section 146
within 30 days of its initial listing date, The Commission has carefully
MKT LLC; Order Approving Proposed reviewed the proposed rule change and
Rule Change Amending the NYSE MKT the complimentary period will begin on
the date of first use.7 Under the finds that it is consistent with the
Company Guide To Create a New requirements of Section 6 of the Act.13
Section 146 Under Which a Certain proposal, Eligible New Listings may
Category of Newly Listed Issuers elect to receive some or all of the
10 Id. In its filing, the Exchange stated its belief
Would Be Entitled To Receive products and services for which they are
that NYSE Governance Services is not a ‘‘facility’’
Complimentary Products and Services eligible under Section 146 of the of the Exchange as defined in 15 U.S.C. 78c(a)(2),
From the Exchange Company Guide and are under no and noted that its proposed rule change is being
obligation to accept any product or filed with the Commission under Section 19(b)(2)
March 17, 2016. service for which they are eligible.8 of the Act because it relates to services offered in
The Exchange states that the specific connection with a listing on the Exchange. See id.
I. Introduction at 5804 n.6. The Commission notes that the
products and services offered by the definition of a ‘‘facility’’ of an exchange is broad
On January 14, 2016, NYSE MKT LLC Exchange will be developed by the under the Act, and ‘‘includes its premises, tangible
(the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed Exchange or by third-party vendors.9 or intangible property whether on the premises or
with the Securities and Exchange not, any right to the use of such premises or
The Exchange states that NYSE property or any service thereof for the purpose of
Commission (‘‘Commission’’) pursuant Governance Services, an entity that is effecting or reporting a transaction on an exchange
to Section 19(b)(1) of the Securities owned by the Exchange’s parent . . . and any right of the exchange to the use of any
Exchange Act of 1934 (‘‘Act’’) 1 and Rule company that provides corporate property or service.’’ The Commission further notes
19b–4 thereunder,2 a proposed rule governance, risk, and compliance that any determination as to whether a service or
other product is a facility of an exchange requires
change to amend the NYSE MKT an analysis of the particular facts and
Company Guide (‘‘Company Guide’’) to 4 For the purposes of the proposed rule, the term
circumstances.
create a new Section 146 under which ‘‘Eligible New Listing’’ means (i) any U.S. company 11 See Notice, supra note 3, at 5804. According to
that lists common stock on the Exchange for the
a certain category of newly listed issuers first time and any non-U.S. company that lists an
the Exchange, the Market Access Center is a market
(‘‘Eligible New Listings’’) would be information analytics platform that is a combination
equity security on the Exchange under Section 101 of technology-enabled market intelligence insight
entitled to receive complimentary or 110 of the Company Guide for the first time, and a team of highly skilled market professionals.
products and services from the regardless of whether such U.S. or non-U.S. According to the Exchange, the platform was
company conducts an offering, (ii) any U.S. or non-
Exchange. The proposed rule change U.S. company that transfers its listing of common
created to provide issuers with better market insight
was published for comment in the and information across all exchanges and trading
stock or equity securities, respectively, to the venues and includes products and services that
Federal Register on February 3, 2016.3 Exchange from another national securities exchange were (i) developed by the Exchange using
No comment letters were received in and (iii) any U.S. or non-U.S. company emerging proprietary data and/or intellectual property or (ii)
from a bankruptcy, spinoff (where a company lists
response to the Notice. This order new shares in the absence of a public offering), and
built by a third-party expressly for the Exchange’s
approves the proposed rule change. listed companies. According to the Exchange,
carve-out (where a company carves out a business within this platform all issuers have access to tools
line or division, which then conducts a separate
II. Description of the Proposed Rule initial public offering). For purposes of the
and information related to market intelligence,
Change education, investor outreach, media visibility,
proposed rule, ‘‘equity securities’’ means common corporate governance, and advocacy initiatives. For
The Exchange proposes to adopt stock or common share equivalents such as example, the Market Access Center offers daily
ordinary shares, New York shares, global shares, trading summaries, a trading alert system
Section 146 of the Company Guide to
jstallworth on DSK7TPTVN1PROD with NOTICES
American Depository Receipts, or Global Depository highlighting user-defined trading or market events,
Receipts. See proposed Section 146 of the Company and a Web site featuring timely content for
53 See supra note 3. Guide. Exchange-listed senior executives featuring trading
54 15 5 See proposed Section 146 of the Company
U.S.C. 78s(b)(2). information, market data, and institutional
55 17 CFR 200.30–3(a)(12). Guide. ownership. Id.
1 15 U.S.C. 78s(b)(1). 6 Id. 12 See id.
2 17 CFR 240.19b–4. 7 Id. 13 15 U.S.C. 78f. In approving this proposed rule
8 Id.
3 See Securities Exchange Act Release No. 76996 change, the Commission has considered the
(January 28, 2016), 81 FR 5803 (‘‘Notice’’). 9 See Notice, supra note 3, at 5804. Continued
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![Federal Register / Vol. 81, No. 56 / Wednesday, March 23, 2016 / Notices 15587
from time to time, companies elect to SECURITIES AND EXCHANGE II. Background and Description of the
purchase products and services from COMMISSION Proposal
other vendors at their own expense A. Background
rather than accepting comparable [Release No. 34–77395; File No. 4–533]
products and services offered by the The Plan was created to establish a
Exchange.26 uniform system for the selection and
Joint Industry Plan; Order Approving
reservation of securities symbols and
The Commission believes that the Amendment No. 3 to the National
sets forth, among other things, the
Exchange is responding to competitive Market System Plan for the Selection process for securing perpetual and
pressures in the market for listings in and Reservation of Securities Symbols limited-time reservations (‘‘List A and
making this proposal. Specifically, the Submitted by Financial Industry List B’’), the use of a waiting list, the
Exchange has represented that it faces Regulatory Authority, Inc., BATS right to reuse a symbol, and the ability
competition in the market for listing Exchange, Inc., BOX Options to request the release of a symbol.
services and that it competes in part by Exchange, LLC, Chicago Board Currently, Section IV(d) of the Plan
improving the quality of the services Options Exchange, Incorporated, outlines the procedures with respect to
that it offers to listed companies.27 The Chicago Stock Exchange, Inc., EDGA reuse of a symbol, and requires that in
Exchange states that by offering Exchange, Inc., EDGX Exchange, Inc., the event a Party ceases to use a symbol,
products and services on a International Securities Exchange, such symbol will be automatically
complimentary basis and ensuring that LLC, NASDAQ OMX BX, Inc., NASDAQ reserved by that Party for a period of 24
it is offering the services most valued by OMX PHLX, Inc., The Nasdaq Stock months, notwithstanding any other
its listed issuers, it improves the quality Market LLC, National Stock Exchange, limits on the number of reserved
Inc., New York Stock Exchange, LLC, symbols specified in the Plan. However,
of the services that listed companies
NYSE MKT, LLC, and NYSE Arca, Inc. in the event that the Party ceasing to use
receive.28 Further, the Exchange states
the symbol neither: (1) Places the
that it hopes to better compete with the March 17, 2016. symbol on its List A or (2) uses the
Nasdaq Global Market, which offers a symbol within 24 months, the symbol
comparable suite of complimentary I. Introduction
will be released for use pursuant to
products and services to new listings On August 24, 2015, Financial Section IV(b)(5) (Non-Use or Release of
and certain transfers, and expects the Industry Regulatory Authority, Inc. Symbols Within Time Period). In such
proposed rule change to enable the (‘‘FINRA’’), on behalf of itself and the instances, the symbol may be reused by
Exchange to more effectively compete following parties to the National Market a different Party to identify a new
with this market for listings.29 System (‘‘NMS’’) Plan for the Selection security in accordance with the
Accordingly, the Commission believes and Reservation of Securities Symbols procedures set forth in the Plan, but in
that the proposed rule reflects the (the ‘‘Plan’’): BATS Exchange, Inc., BOX no event may a symbol be reused to
current competitive environment for Options Exchange, LLC, Chicago Board identify a new security if such use
exchange listings among national would cause investor confusion in the
Options Exchange, Incorporated,
securities exchanges, and is appropriate judgment of the party seeking to reuse
Chicago Stock Exchange, Inc., EDGA
and consistent with Section 6(b)(8) of the symbol.
Exchange, Inc., EDGX Exchange, Inc.,
the Act.30 International Securities Exchange, LLC, B. Description of the Proposal
V. Conclusion NASDAQ OMX BX, Inc., NASDAQ In Amendment No. 3,5 the Parties
OMX PHLX, Inc., The Nasdaq Stock propose to modify the Plan to revise
It is therefore ordered, pursuant to Market LLC, National Stock Exchange, Section IV(d) to provide that, where a
Section 19(b)(2) of the Act,31 that the Inc., New York Stock Exchange, LLC, Party ceases to use a symbol, such party
proposed rule change (SR–NYSEMKT– NYSE MKT, LLC, and NYSE Arca, Inc. may: (1) Elect to release the symbol, and
2016–12), be, and hereby is, approved. (each a ‘‘Party’’ and collectively with (2) that such symbol may not be reused
For the Commission, by the Division of FINRA, the ‘‘Parties’’), filed with the to identify a new security within 90
Trading and Markets, pursuant to delegated Securities and Exchange Commission calendar days from the last day of its
authority.32 (‘‘Commission’’), pursuant to Section use, without the consent of the Party
11A of the Securities Exchange Act of that released the symbol. In addition,
Robert W. Errett,
1934 (‘‘Act’’) 1 and Rule 608 Amendment No. 3 proposes that a Party
Deputy Secretary. may not reuse (or consent to the reuse
thereunder,2 an amendment
[FR Doc. 2016–06515 Filed 3–22–16; 8:45 am] of) a symbol to identify a new security
(‘‘Amendment No. 3’’) to the Plan.3
BILLING CODE 8011–01–P
Amendment No. 3 was published for unless such Party reasonably determines
comment in the Federal Register on that such use would not cause investor
February 18, 2016.4 The Commission confusion.6
Separately, Amendment No. 3 also
received no comment letters on this
includes several technical and
proposal. This Order approves ministerial proposed changes to provide
Amendment No. 3 to the Plan. current information about the name and
1 15 U.S.C. 78k–1. 5 See Amendment No. 3 Notice, supra note 4, for
jstallworth on DSK7TPTVN1PROD with NOTICES
26 SeeNotice, supra note 3, at 5805. 2 17 CFR 242.608. a more detailed description of the proposed
27 See id. 3 The Plan is an NMS plan approved by the changes.
28 See id. Commission pursuant to Section 11A of the Act and 6 In making a reasonable determination as to
29 See id. at 5804–05. See also Nasdaq Stock Rule 608 thereunder. See Securities Exchange Act whether the reuse of a symbol would cause investor
Release No. 58904 (November 6, 2008), 73 FR 67218 confusion, Parties would consider factors such as
Market Rule IM–5900–7(b).
(November 13, 2008). the level of recent activity in the old security,
30 15 U.S.C. 78f(b)(8).
4 See Securities Exchange Act Release No. 77123 including trading frequency, volume and the
31 15 U.S.C. 78s(b)(2).
(February 11, 2016), 81 FR 8264 (February 18, 2016) number of market maker quotes. See Amendment
32 17 CFR 200.30–3(a)(12). (‘‘Amendment No. 3 Notice’’). No. 3 Notice, supra note 4, at 5.
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Document Created: 2016-03-23 00:03:28
Document Modified: 2016-03-23 00:03:28
| Category | Regulatory Information | |
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 15585 |
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