81_FR_63114 81 FR 62937 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change Amending Section 907.00 of the NYSE Listed Company Manual To Adjust the Timing of Entitlements to Complimentary Products and Services for Special Purpose Acquisition Companies

81 FR 62937 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change Amending Section 907.00 of the NYSE Listed Company Manual To Adjust the Timing of Entitlements to Complimentary Products and Services for Special Purpose Acquisition Companies

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 177 (September 13, 2016)

Page Range62937-62939
FR Document2016-21914

Federal Register, Volume 81 Issue 177 (Tuesday, September 13, 2016)
[Federal Register Volume 81, Number 177 (Tuesday, September 13, 2016)]
[Notices]
[Pages 62937-62939]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21914]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78782; File No. SR-NYSE-2016-58]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change Amending Section 907.00 of the 
NYSE Listed Company Manual To Adjust the Timing of Entitlements to 
Complimentary Products and Services for Special Purpose Acquisition 
Companies

September 7, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on August 26, 2016, New York Stock Exchange LLC (``NYSE'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Section 907.00 of the NYSE Listed 
Company Manual (the ``Manual'') to adjust the service entitlements of 
special purpose acquisition companies (``SPACs'') under that rule. The 
proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

[[Page 62938]]

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Section 907.00 of the Manual to 
adjust the service entitlements of special purpose acquisition 
companies (``SPACs'') under that rule.
    The Exchange offers complimentary products and services for a 
period of 24 calendar months from the date of initial listing to a 
category of listed companies defined as Eligible New Listings. Eligible 
New Listings include: (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 102.01 or 103.00 of the 
Manual for the first time, regardless of whether such U.S. or non-U.S. 
company conducts an offering and (ii) 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).
    Eligible New Listings are eligible for services as a Tier A or Tier 
B company as follows:
     Tier A: For Eligible New Listings with a global market 
value of $400 million or more, calculated as of the date of listing on 
the Exchange, the Exchange offers market surveillance, market 
analytics, Web-hosting, Web-casting, corporate governance tools, and 
news distribution products and services for a period of 24 calendar 
months from the date of listing.
     Tier B: For Eligible New Listings with a global market 
value of less than $400 million, calculated as of the date of listing 
on the Exchange, the Exchange offers Web-hosting, market analytics, 
Web-casting, corporate governance tools, and news distribution products 
and services for a period of 24 calendar months from the date of 
listing.
    Notwithstanding the foregoing, however, if an Eligible New Listing 
begins to use a particular product or service provided for under 
Section 907.00 within 30 days of its initial listing date, the 
complimentary period will begin on the date of first use.\4\
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    \4\ The Exchange does not propose to make any changes in this 
filing to the values of the various services set forth above as 
provided to eligible listed companies as specified in Section 
907.00.
---------------------------------------------------------------------------

    A SPAC is a special purpose company formed for the purpose of 
effecting a merger, capital stock exchange, asset acquisition, stock 
purchase, reorganization or similar business combination with one or 
more operating businesses or assets. To qualify for initial listing a 
SPAC must meet the requirements of Section 102.06 and 102.01A of the 
Manual.\5\ Section 102.06 of the Manual provides that the Exchange will 
consider on a case-by-case basis the appropriateness for listing of 
SPACs that conduct an initial public offering of which at least 90% of 
the proceeds, together with the proceeds of any other concurrent sales 
of the SPAC's equity securities, will be held in a trust account 
controlled by an independent custodian (the ``Trust Account'') until 
consummation of a business combination in the form of a merger, capital 
stock exchange, asset acquisition, stock purchase, reorganization, or 
similar business combination with one or more operating businesses or 
assets with a fair market value equal to at least 80% of the net assets 
held in trust (net of amounts disbursed to management for working 
capital purposes and excluding the amount of any deferred underwriting 
discount held in trust) (a ``Business Combination'' or the ``Business 
Combination Condition''). Under Section 102.06, the SPAC must be 
liquidated if no Business Combination has been consummated within a 
specified time period not to exceed three years. The Exchange will 
promptly commence delisting procedures with respect to any SPAC that 
fails to consummate its Business Combination within (i) the time period 
specified by its constitutive documents or by contract or (ii) three 
years, whichever is shorter.
---------------------------------------------------------------------------

    \5\ Section 102.06 refers to SPACs as ``acquisition companies'' 
or ``ACs.''
---------------------------------------------------------------------------

    The Exchange now proposes to amend Section 907.00 to exclude newly-
listed SPACs from the definition of Eligible New Listings. In lieu of 
receiving these services at the time of initial listing, the proposed 
amended rule would treat a SPAC that remains listed after meeting the 
Business Combination Condition as an Eligible New Listing and would 
provide the services to which that status would entitle it for 24 
months from the date of meeting the Business Combination Condition.
    The Exchange believes this approach is appropriate in light of the 
special characteristics of a SPAC. SPACs raise money on a one-time 
basis and typically trade at a price that is very close to their 
liquidation value. As such, SPAC managements are typically not focused 
on their stock price and investor relations to the same degree as 
operating companies are. As the services provided to Eligible New 
Listings are targeted in large part on those market-driven concerns of 
newly-listed operating companies, they are less useful to SPACs. A SPAC 
that has met the Business Combination Condition, on the other hand, is 
similarly situated to a newly-formed publicly-traded operating company 
and the Exchange believes that the services provided to Eligible New 
Listings will be as relevant and attractive to a SPAC that has met the 
Business Combination Condition as to the newly-listed operating 
companies that are generally eligible for those services.
    The Exchange believes that companies will often require a period of 
time after meeting the Business Combination Condition to complete the 
contracting and training process with vendors providing the 
complimentary products and services. Therefore, many companies may not 
be able to begin using the suite of products offered to them 
immediately on becoming eligible. To address this issue, the Exchange 
proposes to specify in Section 907.00 that if a SPAC that has met the 
Business Combination Condition begins using a particular service within 
30 days after the date of meeting the Business Combination Condition, 
the complimentary period begins on such date of first use. In all other 
instances, the complimentary period will begin on the date the SPAC 
meets the Business Combination Condition.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\6\ in general, and furthers the 
objectives of Sections 6(b)(4) \7\ of the Act, in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and other 
persons using its facilities. The Exchange also believes that the 
proposed rule change is consistent with Section 6(b)(5) \8\ of the Act 
in that it is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable to offer complimentary 
products and services to attract and retain listings and respond to 
competitive pressures. As SPACs are unlikely to utilize the services 
available to them currently at the time of initial listing but would 
likely find those services useful if they remain listed after

[[Page 62939]]

they meet the Business Combination Condition, the Exchange believes it 
is reasonable to shift the time when SPACs are eligible for the 
services available to Eligible New Listings to the period immediately 
after meeting the Business Combination Condition.
    The Exchange believes that it is not unfairly discriminatory to 
provide SPACs with the applicable services only if and when they meet 
the Business Combination Condition. The Exchange recognizes that not 
all SPACs will meet the Business Combination Condition and that some 
listed SPACs will therefore never become eligible for the services that 
would be provided to an otherwise similarly qualified operating 
company. However, given the specific characteristics of the SPAC 
structure, these services are generally not of any particular value to 
a SPAC prior to meeting the Business Combination Condition and the 
Exchange therefore believes that those SPACs that never qualify for the 
services will not suffer any meaningful detriment as a consequence.
    Allowing SPACs up to 30 days after meeting the Business Combination 
Condition to start using the complimentary products and services is a 
reflection of the Exchange's experience that it can take companies a 
period of time to review and complete necessary contracts and training 
for services following their becoming eligible for those services. 
Allowing this modest 30 day period, if the company needs it, helps 
ensure that the company will have the benefit of the full period 
permitted under the rule to actually use the services, thus giving 
companies the full intended benefit.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. In many cases, SPACs will 
consider transferring to a new listing venue at the time they meet the 
Business Combination Condition. The proposed rule change enables the 
Exchange to compete for the retention of these companies by offering 
them a package of complimentary products and services that assist their 
transition to being a publicly listed operating company for the first 
time. All similarly situated companies are eligible for the same 
package of services. Therefore, the proposed amendment to Section 
907.00 will increase competition by enabling the Exchange to more 
effectively compete for listings.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or up to 90 days (i) as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or (ii) as to which the self-regulatory 
organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSE-2016-58 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2016-58. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSE-2016-58 and should be 
submitted on or before October 4, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-21914 Filed 9-12-16; 8:45 am]
BILLING CODE 8011-01-P



                                                                       Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Notices                                           62937

                                             10 CFR part 52 license (e.g., an early site             nnco.nano.gov. Please reference page                  SECURITIES AND EXCHANGE
                                             permit) or NRC regulatory approval                      and line numbers in your response, as                 COMMISSION
                                             (e.g., a design certification rule) with                appropriate. For individuals who do not
                                             specified issue finality provisions. The                have access to the internet, comments                 [Release No. 34–78782; File No. SR–NYSE–
                                             NRC does not, at this time, intend to                   may be submitted in writing to: Stacey                2016–58]
                                             impose the positions represented in                     Standridge, ATTN: NNI Strategic Plan
                                             Revision 3 of RG 1.54 on combined                       Comments, 4201 Wilson Blvd., Stafford                 Self-Regulatory Organizations; New
                                             license applicants in a manner that is                  II, Suite 405, Arlington, VA 22230.                   York Stock Exchange LLC; Notice of
                                             inconsistent with any issue finality                                                                          Filing of Proposed Rule Change
                                             provisions. If, in the future, the NRC                  FOR FURTHER INFORMATION CONTACT:                      Amending Section 907.00 of the NYSE
                                             seeks to impose a position in Revision                  Stacey Standridge, National                           Listed Company Manual To Adjust the
                                             3 of RG 1.54 in a manner that does not                  Nanotechnology Coordination Office,                   Timing of Entitlements to
                                             provide issue finality as described in the              703–292–8103, sstandridge@                            Complimentary Products and Services
                                             applicable issue finality provision, then               nnco.nano.gov.                                        for Special Purpose Acquisition
                                             the NRC must address the criteria for                                                                         Companies
                                             avoiding issue finality as described in                 SUPPLEMENTARY INFORMATION:      The NNI
                                             the applicable issue finality provision.                is a U.S. Government R&D program                      September 7, 2016.
                                                Proposed Revision 3 of RG 1.54                       involving 20 departments and                             Pursuant to Section 19(b)(1) 1 of the
                                             updates the ASTM International                          independent agencies, 11 of which have                Securities Exchange Act of 1934 (the
                                             standards the NRC staff has approved                    budgets for nanotechnology R&D,                       ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                             for use when qualifying and testing                     working together toward the common                    notice is hereby given that, on August
                                             protective coatings and linings used in                 vision of a future in which the ability to            26, 2016, New York Stock Exchange
                                             nuclear power plants.                                   understand and control matter at the                  LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
                                                Dated at Rockville, Maryland, this 7th day           nanoscale level leads to a revolution in              with the Securities and Exchange
                                             of September, 2016.                                     technology and industry that benefits                 Commission (the ‘‘Commission’’) the
                                                For the Nuclear Regulatory Commission.               society. The combined, coordinated                    proposed rule change as described in
                                             Thomas H. Boyce,                                        efforts of these agencies have                        Items I, II, and III below, which Items
                                                                                                     accelerated discovery, development,                   have been prepared by the self-
                                             Chief, Regulatory Guidance and Generic
                                             Issues Branch, Division of Engineering, Office          and deployment of nanotechnology                      regulatory organization. The
                                             of Nuclear Regulatory Research.                         towards agency missions and the                       Commission is publishing this notice to
                                             [FR Doc. 2016–21956 Filed 9–12–16; 8:45 am]             broader national interest.                            solicit comments on the proposed rule
                                                                                                                                                           change from interested persons.
                                             BILLING CODE 7590–01–P                                     The NNI Strategic Plan describes the
                                                                                                     NNI vision and goals and the strategies               I. Self-Regulatory Organization’s
                                                                                                     by which these goals are to be achieved.              Statement of the Terms of Substance of
                                             OFFICE OF SCIENCE AND                                   The plan includes a description of the                the Proposed Rule Change
                                             TECHNOLOGY POLICY                                       NNI investment strategy and the                          The Exchange proposes to amend
                                                                                                     program component areas called for by                 Section 907.00 of the NYSE Listed
                                             2016 National Nanotechnology
                                                                                                     the 21st Century Research and                         Company Manual (the ‘‘Manual’’) to
                                             Initiative Strategic Plan; Notice of
                                                                                                     Development Act of 2003, and it also                  adjust the service entitlements of special
                                             Availability and Request for Public
                                             Comment                                                 identifies specific objectives toward                 purpose acquisition companies
                                                                                                     collectively achieving the NNI vision.                (‘‘SPACs’’) under that rule. The
                                             ACTION:Notice of Availability and                       This plan updates and replaces the NNI                proposed rule change is available on the
                                             Request for Public Comment.                             Strategic Plan of February 2014.                      Exchange’s Web site at www.nyse.com,
                                                                                                        The NNI Strategic Plan provides the                at the principal office of the Exchange,
                                             SUMMARY:   The National Nanotechnology                                                                        and at the Commission’s Public
                                             Coordination Office (NNCO), on behalf                   framework that underpins the
                                                                                                     nanotechnology-related activities of the              Reference Room.
                                             of the Nanoscale Science, Engineering,
                                             and Technology (NSET) Subcommittee                      NNI agencies. Its aim is to ensure that               II. Self-Regulatory Organization’s
                                             of the Committee on Technology;                         advancements in nanotechnology and                    Statement of the Purpose of, and
                                             National Science and Technology                         its applications continue in this vital               Statutory Basis for, the Proposed Rule
                                             Council (NSTC); announces the                           R&D enterprise, while potential                       Change
                                             availability of the draft 2016 National                 concerns about current and future
                                                                                                     applications are also addressed. The                    In its filing with the Commission, the
                                             Nanotechnology Initiative (NNI)
                                                                                                     purpose of the Strategic Plan is to                   self-regulatory organization included
                                             Strategic Plan for public comment. The
                                                                                                                                                           statements concerning the purpose of,
                                             draft plan is posted at www.nano.gov/                   catalyze achievements in support of the
                                                                                                                                                           and basis for, the proposed rule change
                                             2016strategy. Comments of                               goals and vision of the NNI by providing
                                                                                                                                                           and discussed any comments it received
                                             approximately one page or less in length                guidance for agency leaders, program
                                                                                                                                                           on the proposed rule change. The text
                                             are requested.                                          managers, and the research community
                                                                                                                                                           of those statements may be examined at
                                             DATES: Comments must be received by                     regarding the planning and                            the places specified in Item IV below.
                                             September 23, 2016.                                     implementation of Federal                             The Exchange has prepared summaries,
                                                                                                     nanotechnology R&D investments and
Lhorne on DSK30JT082PROD with NOTICES




                                             ADDRESSES: The draft 2016 NNI                                                                                 set forth in sections A, B, and C below,
                                             Strategic Plan is available on the NNI                  activities.                                           of the most significant parts of such
                                             Web site, www.nano.gov/2016strategy.                    Ted Wackler,                                          statements.
                                             The public is encouraged to submit
                                                                                                     Deputy Chief of Staff and Assistant Director.
                                             comments electronically through                                                                                 1 15 U.S.C.78s(b)(1).
                                                                                                     [FR Doc. 2016–21796 Filed 9–12–16; 8:45 am]
                                             www.nano.gov/2016strategy, or via                                                                               2 15 U.S.C. 78a.
                                             email to 2016NNIStrategy@                               BILLING CODE 3270–F6–P                                  3 17 CFR 240.19b–4.




                                        VerDate Sep<11>2014   15:27 Sep 12, 2016   Jkt 238001   PO 00000   Frm 00084   Fmt 4703   Sfmt 4703   E:\FR\FM\13SEN1.SGM   13SEN1


                                             62938                       Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Notices

                                             A. Self-Regulatory Organization’s                         acquisition, stock purchase,                         companies are. As the services provided
                                             Statement of the Purpose of, and the                      reorganization or similar business                   to Eligible New Listings are targeted in
                                             Statutory Basis for, the Proposed Rule                    combination with one or more operating               large part on those market-driven
                                             Change                                                    businesses or assets. To qualify for                 concerns of newly-listed operating
                                                                                                       initial listing a SPAC must meet the                 companies, they are less useful to
                                             1. Purpose                                                requirements of Section 102.06 and                   SPACs. A SPAC that has met the
                                                The Exchange proposes to amend                         102.01A of the Manual.5 Section 102.06               Business Combination Condition, on the
                                             Section 907.00 of the Manual to adjust                    of the Manual provides that the                      other hand, is similarly situated to a
                                             the service entitlements of special                       Exchange will consider on a case-by-                 newly-formed publicly-traded operating
                                             purpose acquisition companies                             case basis the appropriateness for listing           company and the Exchange believes that
                                             (‘‘SPACs’’) under that rule.                              of SPACs that conduct an initial public              the services provided to Eligible New
                                                The Exchange offers complimentary                      offering of which at least 90% of the                Listings will be as relevant and
                                             products and services for a period of 24                  proceeds, together with the proceeds of              attractive to a SPAC that has met the
                                             calendar months from the date of initial                  any other concurrent sales of the SPAC’s             Business Combination Condition as to
                                             listing to a category of listed companies                 equity securities, will be held in a trust           the newly-listed operating companies
                                             defined as Eligible New Listings.                         account controlled by an independent                 that are generally eligible for those
                                             Eligible New Listings include: (I) Any                    custodian (the ‘‘Trust Account’’) until              services.
                                             U.S. company that lists common stock                      consummation of a business                              The Exchange believes that
                                             on the Exchange for the first time and                    combination in the form of a merger,                 companies will often require a period of
                                             any non-U.S. company that lists an                        capital stock exchange, asset                        time after meeting the Business
                                             equity security on the Exchange under                     acquisition, stock purchase,                         Combination Condition to complete the
                                             Section 102.01 or 103.00 of the Manual                    reorganization, or similar business                  contracting and training process with
                                             for the first time, regardless of whether                 combination with one or more operating               vendors providing the complimentary
                                             such U.S. or non-U.S. company                             businesses or assets with a fair market              products and services. Therefore, many
                                             conducts an offering and (ii) any U.S. or                 value equal to at least 80% of the net               companies may not be able to begin
                                             non-U.S. company emerging from a                          assets held in trust (net of amounts                 using the suite of products offered to
                                             bankruptcy, spinoff (where a company                      disbursed to management for working                  them immediately on becoming eligible.
                                             lists new shares in the absence of a                      capital purposes and excluding the                   To address this issue, the Exchange
                                             public offering), and carve-out (where a                  amount of any deferred underwriting                  proposes to specify in Section 907.00
                                             company carves out a business line or                     discount held in trust) (a ‘‘Business                that if a SPAC that has met the Business
                                             division, which then conducts a                           Combination’’ or the ‘‘Business                      Combination Condition begins using a
                                             separate initial public offering).                        Combination Condition’’). Under                      particular service within 30 days after
                                                Eligible New Listings are eligible for                 Section 102.06, the SPAC must be                     the date of meeting the Business
                                             services as a Tier A or Tier B company                    liquidated if no Business Combination                Combination Condition, the
                                             as follows:                                               has been consummated within a                        complimentary period begins on such
                                                • Tier A: For Eligible New Listings                    specified time period not to exceed                  date of first use. In all other instances,
                                             with a global market value of $400                        three years. The Exchange will promptly              the complimentary period will begin on
                                             million or more, calculated as of the                     commence delisting procedures with                   the date the SPAC meets the Business
                                             date of listing on the Exchange, the                      respect to any SPAC that fails to                    Combination Condition.
                                             Exchange offers market surveillance,                      consummate its Business Combination
                                                                                                       within (i) the time period specified by              2. Statutory Basis
                                             market analytics, Web-hosting, Web-
                                             casting, corporate governance tools, and                  its constitutive documents or by                        The Exchange believes that the
                                             news distribution products and services                   contract or (ii) three years, whichever is           proposed rule change is consistent with
                                             for a period of 24 calendar months from                   shorter.                                             Section 6(b) of the Act,6 in general, and
                                             the date of listing.                                         The Exchange now proposes to amend                furthers the objectives of Sections
                                                • Tier B: For Eligible New Listings                    Section 907.00 to exclude newly-listed               6(b)(4) 7 of the Act, in particular, in that
                                             with a global market value of less than                   SPACs from the definition of Eligible                it is designed to provide for the
                                             $400 million, calculated as of the date                   New Listings. In lieu of receiving these             equitable allocation of reasonable dues,
                                             of listing on the Exchange, the Exchange                  services at the time of initial listing, the         fees, and other charges among its
                                             offers Web-hosting, market analytics,                     proposed amended rule would treat a                  members and issuers and other persons
                                             Web-casting, corporate governance                         SPAC that remains listed after meeting               using its facilities. The Exchange also
                                             tools, and news distribution products                     the Business Combination Condition as                believes that the proposed rule change
                                             and services for a period of 24 calendar                  an Eligible New Listing and would                    is consistent with Section 6(b)(5) 8 of the
                                             months from the date of listing.                          provide the services to which that status            Act in that it is not designed to permit
                                                Notwithstanding the foregoing,                         would entitle it for 24 months from the              unfair discrimination between
                                             however, if an Eligible New Listing                       date of meeting the Business                         customers, issuers, brokers, or dealers.
                                             begins to use a particular product or                     Combination Condition.                                  The Exchange believes that it is
                                             service provided for under Section                           The Exchange believes this approach               reasonable to offer complimentary
                                             907.00 within 30 days of its initial                      is appropriate in light of the special               products and services to attract and
                                             listing date, the complimentary period                    characteristics of a SPAC. SPACs raise               retain listings and respond to
                                             will begin on the date of first use.4                     money on a one-time basis and typically              competitive pressures. As SPACs are
                                                                                                       trade at a price that is very close to their         unlikely to utilize the services available
                                                A SPAC is a special purpose company
Lhorne on DSK30JT082PROD with NOTICES




                                                                                                       liquidation value. As such, SPAC                     to them currently at the time of initial
                                             formed for the purpose of effecting a
                                                                                                       managements are typically not focused                listing but would likely find those
                                             merger, capital stock exchange, asset
                                                                                                       on their stock price and investor                    services useful if they remain listed after
                                               4 The Exchange does not propose to make any             relations to the same degree as operating
                                                                                                                                                              6 15 U.S.C. 78f(b).
                                             changes in this filing to the values of the various
                                                                                                                                                              7 15 U.S.C. 78f(b)(4).
                                             services set forth above as provided to eligible listed     5 Section
                                                                                                                 102.06 refers to SPACs as ‘‘acquisition
                                             companies as specified in Section 907.00.                 companies’’ or ‘‘ACs.’’                                8 15 U.S.C. 78f(b)(5).




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                                                                       Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Notices                                                 62939

                                             they meet the Business Combination                      C. Self-Regulatory Organization’s                     provisions of 5 U.S.C. 552, will be
                                             Condition, the Exchange believes it is                  Statement on Comments on the                          available for Web site viewing and
                                             reasonable to shift the time when SPACs                 Proposed Rule Change Received From                    printing in the Commission’s Public
                                             are eligible for the services available to              Members, Participants, or Others                      Reference Room, 100 F Street NE.,
                                             Eligible New Listings to the period                       No written comments were solicited                  Washington, DC 20549 on official
                                             immediately after meeting the Business                                                                        business days between the hours of
                                                                                                     or received with respect to the proposed
                                             Combination Condition.                                                                                        10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                     rule change.
                                                The Exchange believes that it is not                                                                       filing also will be available for
                                             unfairly discriminatory to provide                      III. Date of Effectiveness of the                     inspection and copying at the principal
                                             SPACs with the applicable services only                 Proposed Rule Change and Timing for                   office of the Exchange. All comments
                                             if and when they meet the Business                      Commission Action                                     received will be posted without change;
                                             Combination Condition. The Exchange                       Within 45 days of the date of                       the Commission does not edit personal
                                             recognizes that not all SPACs will meet                 publication of this notice in the Federal             identifying information from
                                             the Business Combination Condition                      Register or up to 90 days (i) as the                  submissions. You should submit only
                                             and that some listed SPACs will                         Commission may designate if it finds                  information that you wish to make
                                             therefore never become eligible for the                 such longer period to be appropriate                  available publicly. All submissions
                                             services that would be provided to an                   and publishes its reasons for so finding              should refer to File Number SR–NYSE–
                                             otherwise similarly qualified operating                 or (ii) as to which the self-regulatory               2016–58 and should be submitted on or
                                             company. However, given the specific                    organization consents, the Commission                 before October 4, 2016.
                                             characteristics of the SPAC structure,                  will:                                                   For the Commission, by the Division of
                                             these services are generally not of any                   (A) By order approve or disapprove                  Trading and Markets, pursuant to delegated
                                             particular value to a SPAC prior to                     the proposed rule change, or                          authority.9
                                             meeting the Business Combination                          (B) institute proceedings to determine              Brent J. Fields,
                                             Condition and the Exchange therefore                    whether the proposed rule change                      Secretary.
                                             believes that those SPACs that never                    should be disapproved.                                [FR Doc. 2016–21914 Filed 9–12–16; 8:45 am]
                                             qualify for the services will not suffer                                                                      BILLING CODE 8011–01–P
                                             any meaningful detriment as a                           IV. Solicitation of Comments
                                             consequence.                                              Interested persons are invited to
                                                Allowing SPACs up to 30 days after                   submit written data, views, and                       SECURITIES AND EXCHANGE
                                             meeting the Business Combination                        arguments concerning the foregoing,                   COMMISSION
                                             Condition to start using the                            including whether the proposed rule                   [Release No. 34–78780; File No. SR–
                                             complimentary products and services is                  change is consistent with the Act.                    NYSEMKT–2016–87]
                                             a reflection of the Exchange’s                          Comments may be submitted by any of
                                             experience that it can take companies a                 the following methods:                                Self-Regulatory Organizations; NYSE
                                             period of time to review and complete                                                                         MKT LLC; Notice of Filing and
                                                                                                     Electronic Comments
                                             necessary contracts and training for                                                                          Immediate Effectiveness of Proposed
                                             services following their becoming                         • Use the Commission’s Internet                     Rule Change To Amend Rule 903 and
                                             eligible for those services. Allowing this              comment form (http://www.sec.gov/                     Rule 900.2NY(50)
                                             modest 30 day period, if the company                    rules/sro.shtml); or
                                                                                                       • Send an email to rule-comments@                   September 7, 2016.
                                             needs it, helps ensure that the company
                                             will have the benefit of the full period                sec.gov. Please include File Number SR–                  Pursuant to Section 19(b)(1) 1 of the
                                             permitted under the rule to actually use                NYSE–2016–58 on the subject line.                     Securities Exchange Act of 1934 (the
                                             the services, thus giving companies the                                                                       ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                                                                     Paper Comments                                        notice is hereby given that on
                                             full intended benefit.
                                                                                                       • Send paper comments in triplicate                 September 6, 2016, NYSE MKT LLC (the
                                             B. Self-Regulatory Organization’s                       to Brent J. Fields, Secretary, Securities             ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
                                             Statement on Burden on Competition                      and Exchange Commission, 100 F Street                 the Securities and Exchange
                                                The Exchange does not believe that                   NE., Washington, DC 20549–1090.                       Commission (the ‘‘Commission’’) the
                                             the proposed rule change will impose                    All submissions should refer to File                  proposed rule change as described in
                                             any burden on competition that is not                   Number SR–NYSE–2016–58. This file                     Items I and II below, which Items have
                                             necessary or appropriate in furtherance                 number should be included on the                      been prepared by the self-regulatory
                                             of the purposes of the Act. In many                     subject line if email is used. To help the            organization. The Commission is
                                             cases, SPACs will consider transferring                 Commission process and review your                    publishing this notice to solicit
                                             to a new listing venue at the time they                 comments more efficiently, please use                 comments on the proposed rule change
                                             meet the Business Combination                           only one method. The Commission will                  from interested persons.
                                             Condition. The proposed rule change                     post all comments on the Commission’s                 I. Self-Regulatory Organization’s
                                             enables the Exchange to compete for the                 Internet Web site (http://www.sec.gov/                Statement of the Terms of Substance of
                                             retention of these companies by offering                rules/sro.shtml). Copies of the                       the Proposed Rule Change
                                             them a package of complimentary                         submission, all subsequent                               The Exchange proposes to amend
                                             products and services that assist their                 amendments, all written statements                    Rule 903 and Rule 900.2NY(50). The
                                             transition to being a publicly listed                   with respect to the proposed rule                     proposed rule change is available on the
Lhorne on DSK30JT082PROD with NOTICES




                                             operating company for the first time. All               change that are filed with the                        Exchange’s Web site at www.nyse.com,
                                             similarly situated companies are eligible               Commission, and all written                           at the principal office of the Exchange,
                                             for the same package of services.                       communications relating to the
                                             Therefore, the proposed amendment to                    proposed rule change between the                        9 17 CFR 200.30–3(a)(12).
                                             Section 907.00 will increase                            Commission and any person, other than                   1 15 U.S.C. 78s(b)(1).
                                             competition by enabling the Exchange                    those that may be withheld from the                     2 15 U.S.C. 78a.

                                             to more effectively compete for listings.               public in accordance with the                           3 17 CFR 240.19b–4.




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Document Created: 2018-02-09 13:16:36
Document Modified: 2018-02-09 13:16:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 62937 

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