81 FR 15587 - Joint Industry Plan; Order Approving Amendment No. 3 to the National Market System Plan for the Selection and Reservation of Securities Symbols Submitted by Financial Industry Regulatory Authority, Inc., BATS Exchange, Inc., BOX Options Exchange, LLC, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., International Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., The Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange, LLC, NYSE MKT, LLC, and NYSE Arca, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 56 (March 23, 2016)

Page Range		15587-15588
FR Document		2016-06455

Federal Register, Volume 81 Issue 56 (Wednesday, March 23, 2016)

[Federal Register Volume 81, Number 56 (Wednesday, March 23, 2016)]
[Notices]
[Pages 15587-15588]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06455]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77395; File No. 4-533]


Joint Industry Plan; Order Approving Amendment No. 3 to the 
National Market System Plan for the Selection and Reservation of 
Securities Symbols Submitted by Financial Industry Regulatory 
Authority, Inc., BATS Exchange, Inc., BOX Options Exchange, LLC, 
Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, 
Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., International 
Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., 
The Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York 
Stock Exchange, LLC, NYSE MKT, LLC, and NYSE Arca, Inc.

March 17, 2016.

I. Introduction

    On August 24, 2015, Financial Industry Regulatory Authority, Inc. 
(``FINRA''), on behalf of itself and the following parties to the 
National Market System (``NMS'') Plan for the Selection and Reservation 
of Securities Symbols (the ``Plan''): BATS Exchange, Inc., BOX Options 
Exchange, LLC, Chicago Board Options Exchange, Incorporated, Chicago 
Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., 
International Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX 
PHLX, Inc., The Nasdaq Stock Market LLC, National Stock Exchange, Inc., 
New York Stock Exchange, LLC, NYSE MKT, LLC, and NYSE Arca, Inc. (each 
a ``Party'' and collectively with FINRA, the ``Parties''), filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
Section 11A of the Securities Exchange Act of 1934 (``Act'') \1\ and 
Rule 608 thereunder,\2\ an amendment (``Amendment No. 3'') to the 
Plan.\3\ Amendment No. 3 was published for comment in the Federal 
Register on February 18, 2016.\4\ The Commission received no comment 
letters on this proposal. This Order approves Amendment No. 3 to the 
Plan.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The Plan is an NMS plan approved by the Commission pursuant 
to Section 11A of the Act and Rule 608 thereunder. See Securities 
Exchange Act Release No. 58904 (November 6, 2008), 73 FR 67218 
(November 13, 2008).
    \4\ See Securities Exchange Act Release No. 77123 (February 11, 
2016), 81 FR 8264 (February 18, 2016) (``Amendment No. 3 Notice'').
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II. Background and Description of the Proposal

A. Background

    The Plan was created to establish a uniform system for the 
selection and reservation of securities symbols and sets forth, among 
other things, the process for securing perpetual and limited-time 
reservations (``List A and List B''), the use of a waiting list, the 
right to reuse a symbol, and the ability to request the release of a 
symbol. Currently, Section IV(d) of the Plan outlines the procedures 
with respect to reuse of a symbol, and requires that in the event a 
Party ceases to use a symbol, such symbol will be automatically 
reserved by that Party for a period of 24 months, notwithstanding any 
other limits on the number of reserved symbols specified in the Plan. 
However, in the event that the Party ceasing to use the symbol neither: 
(1) Places the symbol on its List A or (2) uses the symbol within 24 
months, the symbol will be released for use pursuant to Section 
IV(b)(5) (Non-Use or Release of Symbols Within Time Period). In such 
instances, the symbol may be reused by a different Party to identify a 
new security in accordance with the procedures set forth in the Plan, 
but in no event may a symbol be reused to identify a new security if 
such use would cause investor confusion in the judgment of the party 
seeking to reuse the symbol.

B. Description of the Proposal

    In Amendment No. 3,\5\ the Parties propose to modify the Plan to 
revise Section IV(d) to provide that, where a Party ceases to use a 
symbol, such party may: (1) Elect to release the symbol, and (2) that 
such symbol may not be reused to identify a new security within 90 
calendar days from the last day of its use, without the consent of the 
Party that released the symbol. In addition, Amendment No. 3 proposes 
that a Party may not reuse (or consent to the reuse of) a symbol to 
identify a new security unless such Party reasonably determines that 
such use would not cause investor confusion.\6\
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    \5\ See Amendment No. 3 Notice, supra note 4, for a more 
detailed description of the proposed changes.
    \6\ In making a reasonable determination as to whether the reuse 
of a symbol would cause investor confusion, Parties would consider 
factors such as the level of recent activity in the old security, 
including trading frequency, volume and the number of market maker 
quotes. See Amendment No. 3 Notice, supra note 4, at 5.
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    Separately, Amendment No. 3 also includes several technical and 
ministerial proposed changes to provide current information about the 
name and

[[Page 15588]]

principal place of business of certain parties to the Plan.

III. Discussion

    After careful review, the Commission finds that Amendment No. 3 is 
appropriate in the public interest, for the protection of investors and 
the maintenance of fair and orderly markets, and to remove impediments 
to, and perfect the mechanisms of, a national market system. By 
allowing a Party to elect to release a symbol immediately after its 
discontinued use, Amendment No. 3 would encourage the efficient use of 
symbols to the benefit of the Parties and potential issuers. 
Additionally, the proposed symbol reuse process, which includes a 
presumptive 90-day waiting period as well as the requirement that a 
Party may not reuse (or consent to the reuse of) a symbol to identify a 
new security unless such Party reasonably determines that such use 
would not cause investor confusion, would help ensure that the reuse of 
symbols would not cause investor confusion. The Commission notes that 
the Parties have also stated that the amendment provides for a fair and 
orderly approach that would be applied consistently by all Parties to 
facilitate investor protection. Finally, the Commission believes that 
the proposed technical and ministerial changes should be adopted to 
reflect updated Party names and addresses to the Plan.

IV. Conclusion

    For the reasons discussed above, the Commission finds that 
Amendment No. 3 is appropriate in the public interest, for the 
protection of investors and the maintenance of fair and orderly 
markets, and to remove impediments to, and perfect the mechanisms of, a 
national market system, or otherwise in furtherance of the purposes of 
the Act.
    It is therefore ordered, pursuant to Section 11A of the Act, and 
the rules and regulations thereunder, that Amendment No. 3 to the Plan 
(File No. 4-553) be, and it hereby is, approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(29).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-06455 Filed 3-22-16; 8:45 am]
BILLING CODE 8011-01-P

15588 Federal Register / Vol. 81, No. 56 / Wednesday, March 23, 2016 / Notices

principal place of business of certain SECURITIES AND EXCHANGE 2015, FINRA extended the time period
parties to the Plan. COMMISSION for Commission action on this proposed
rule change until March 22, 2016.
III. Discussion [Release No. 34–77391; File No. SR–FINRA– The Commission is publishing this
2015–054]
order to solicit comments on the
After careful review, the Commission
Self-Regulatory Organizations; proposed rule change and to institute
finds that Amendment No. 3 is
Financial Industry Regulatory proceedings pursuant to Exchange Act
appropriate in the public interest, for Section 19(b)(2)(B) 5 to determine
the protection of investors and the Authority, Inc.; Order Instituting
Proceedings To Determine Whether To whether to approve or disapprove the
maintenance of fair and orderly markets, proposed rule change.
and to remove impediments to, and Approve or Disapprove Proposed Rule
Change To Adopt FINRA Capital Institution of proceedings does not
perfect the mechanisms of, a national indicate that the Commission has
Acquisition Broker Rules
market system. By allowing a Party to reached any conclusions with respect to
elect to release a symbol immediately March 17, 2016. the proposed rule change, nor does it
after its discontinued use, Amendment mean that the Commission will
No. 3 would encourage the efficient use I. Introduction ultimately disapprove the proposed rule
of symbols to the benefit of the Parties On October 9, 2015, the Financial change. Rather, as discussed below, the
and potential issuers. Additionally, the Industry Regulatory Authority, Inc. Commission seeks additional input on
proposed symbol reuse process, which (‘‘FINRA’’) filed with the Securities and the proposed rule change and issues
includes a presumptive 90-day waiting Exchange Commission (‘‘SEC’’ or presented by the proposal.
period as well as the requirement that ‘‘Commission’’), pursuant to Section
II. Description of the Proposed Rule
a Party may not reuse (or consent to the 19(b)(1) of the Securities Exchange Act
Change 6
reuse of) a symbol to identify a new of 1934 (‘‘Exchange Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule FINRA is proposing to create a
security unless such Party reasonably separate rule set that would apply to
change to adopt rules for capital
determines that such use would not firms that meet the definition of ‘‘capital
acquisition brokers (collectively, the
cause investor confusion, would help ‘‘CAB Rules’’). The proposed rule acquisition broker’’ (‘‘CAB’’) and elect to
ensure that the reuse of symbols would change was published for comment in be governed under this rule set. FINRA
not cause investor confusion. The the Federal Register on December 23, states that there are firms that are solely
Commission notes that the Parties have 2015.3 The Commission received corporate financing firms that advise
also stated that the amendment provides seventeen comment letters on the companies on mergers and acquisitions,
for a fair and orderly approach that proposed rule change.4 On December 9, advise issuers on raising debt and equity
would be applied consistently by all capital in private placements with
Parties to facilitate investor protection. 1 15 U.S.C. 78s(b)(1). institutional investors, or provide
Finally, the Commission believes that 2 17 CFR 240.19b–4. advisory services on a consulting basis
the proposed technical and ministerial 3 See Exchange Act Release No. 76675 (Dec. 23,
to companies that need assistance
2015), 80 FR 79969 (‘‘Notice’’). analyzing their strategic and financial
changes should be adopted to reflect 4 See letters from Peter W. LaVigne, Esq., Chair,
updated Party names and addresses to alternatives. These firms often are
Securities Regulation Committee, Business Law
the Plan. Section, New York State Bar Association dated registered as broker-dealers because of
January 22, 2016 (‘‘New York State Bar Association their activities and because they may
IV. Conclusion Letter’’); Judith M. Shaw, President, North receive transaction-based compensation
American Securities Administrators Association as part of their services.
For the reasons discussed above, the (‘‘NASAA’’), and Maine Securities Administrator,
Nevertheless, FINRA believes that
Washington, District of Columbia dated January 15,
Commission finds that Amendment No. 2016 (‘‘NASAA Letter’’); Michael S. Quinn, Member these firms do not engage in many of the
3 is appropriate in the public interest, and CCO, Q Advisors dated January 13, 2016 (‘‘Q types of activities typically associated
for the protection of investors and the Advisors Letter’’); Howard Spindel, Senior with traditional broker-dealers. For
maintenance of fair and orderly markets, Managing Director, and Cassondra E. Joseph,
Managing Director, Integrated Management
example, these firms typically do not
and to remove impediments to, and Solutions USA LLC dated January 13, 2016 (‘‘IMS carry or act as an introducing broker
perfect the mechanisms of, a national Letter’’); Lisa Roth, President, Monahan & Roth, with respect to customer accounts,
market system, or otherwise in LLC dated January 13, 2016 (‘‘Roth Letter’’); Mark handle customer funds or securities,
Fairbanks, President, Foreside Distributors dated accept orders to purchase or sell
furtherance of the purposes of the Act. January 13, 2016 (‘‘Foreside Letter’’); Arne Rovell,
Coronado Investments, LLC dated January 6, 2016 securities either as principal or agent for
It is therefore ordered, pursuant to
(‘‘Coronado Letter’’); Daniel H. Kolber, President/ the customer, exercise investment
Section 11A of the Act, and the rules CEO, Intellivest Securities, Inc. dated December 30, discretion on behalf of any customer, or
and regulations thereunder, that 2016 (‘‘Intellivest Letter’’); Roger W. Mehle, engage in proprietary trading of
Amendment No. 3 to the Plan (File No. Washington, District of Columbia dated December
securities or market-making activities.
4–553) be, and it hereby is, approved. 29, 2015 (‘‘Mehle Letter’’); Donna B. DiMaria,
Chairman of the Board of Directors, and Lisa Roth, FINRA is proposing to establish a
For the Commission, by the Division of Board of Directors, Third Party Marketers separate rule set that would apply
Trading and Markets, pursuant to delegated Association dated January 12, 2016 (‘‘3PM Letter’’) exclusively to firms that meet the
(letters supporting the 3PM letter: Sajan K. Thomas,
authority.7 President, and Stephen J. Myott, Chief Compliance
definition of ‘‘capital acquisition
Robert W. Errett, Officer, Thomas Capital Group, Inc. dated January broker’’ and that elect to be governed
13, 2016; Richard A. Murphy, North Bridge Capital under this rule set. CABs would be
jstallworth on DSK7TPTVN1PROD with NOTICES

Deputy Secretary. LLC, Boston, Massachusetts dated January 13, 2016; subject to the FINRA By-Laws, as well
[FR Doc. 2016–06455 Filed 3–22–16; 8:45 am] Steven Jafarzadeh, CAIA, CCO, Stonehaven, New
York dated January 13, 2016; Dan Glusker, Perkins
as core FINRA rules that FINRA believes
BILLING CODE 8011–01–P
Fund Marketing LLC dated January 13, 2016; Ron
5 15 U.S.C. 78s(b)(2)(B).
Oldenkamp, President, Genesis Marketing Group
dated January 13, 2016; Timothy Cahill, President, 6 The proposed rule change, as described in this
Compass Securities Corporation dated January 13, Item II, is excerpted, in part, from the Notice, which
2016; Frank P. L. Minard, Managing Partner, XT was substantially prepared by FINRA. See supra
7 17 CFR 200.30–3(a)(29). Capital Partners, LLC dated January 12, 2016). note 3.

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Document Created: 2016-03-23 00:03:07
Document Modified: 2016-03-23 00:03:07

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 15587