83_FR_19467 83 FR 19382 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Section 902.11 of the Exchange's Listed Company Manual Concerning Fees Applicable to Acquisition Companies for Shares Issued Contingent on the Consummation of a Business Combination

83 FR 19382 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Section 902.11 of the Exchange's Listed Company Manual Concerning Fees Applicable to Acquisition Companies for Shares Issued Contingent on the Consummation of a Business Combination

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 85 (May 2, 2018)

Page Range19382-19384
FR Document2018-09262

Federal Register, Volume 83 Issue 85 (Wednesday, May 2, 2018)
[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19382-19384]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09262]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83117; File No. SR-NYSE-2018-14]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Section 902.11 of the Exchange's Listed Company Manual Concerning 
Fees Applicable to Acquisition Companies for Shares Issued Contingent 
on the Consummation of a Business Combination

April 26, 2018.

    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 April 16, 2018, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Rule 902.11. The proposed rule 
change is available on the Exchange's website 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.

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

1. Purpose
    Section 102.06 of the Manual provides for the listing of companies 
(``Acquisition Companies'' or ``ACs'') with no prior operating history 
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 AC's equity securities, will be held in a trust account controlled 
by an independent custodian until consummation of a business 
combination. The business combination can be 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 (a ``Business Combination'') 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 listed AC may remain listed upon consummation of its Business 
Combination, provided it meets the criteria specified in Section 
802.01B of the Manual.
    In the experience of the Exchange, an AC will frequently reconsider 
its listing venue in connection with the consummation of its Business 
Combination.\4\ The Business Combination is a transformative event in 
the life cycle of an AC, when it becomes an operating company instead 
of a blank check company. In connection with that transformation, an AC 
will frequently put in place a new management team and significantly 
change its board of directors and it will often have a significantly 
different shareholder base after the Business Combination than it had 
as an AC. In effect, an AC after its Business Combination is a 
completely different company and it is for this reason that the board 
and management of the company after the transaction would want to 
reconsider the positioning of the company in many respects, including 
its listing venue.
---------------------------------------------------------------------------

    \4\ The Exchange began to list ACs on a regular basis in the 
last year, so the practice of ACs changing listing venue at the time 
of their Business Combination has not yet involved any companies 
transferring away from the NYSE in those circumstances.
---------------------------------------------------------------------------

    The market for the retention or transfer to another exchange of 
these companies is very competitive and a number of transfers to a new 
listing venue have occurred in recent times in connection with the 
completion of an AC's Business Combination. The listing rules of the 
Exchange,\5\ NYSE American \6\ and NASDAQ Stock Market \7\ all provide 
for a waiver of all initial listing fees in connection with a transfer 
from another national securities exchange, so an AC moving its listing 
upon consummation of its Business Combination never has to pay any 
listing fees in connection with such transfer or the issuance of any 
new shares at the time of its Business Combination. However, until a 
recent amendment to Section 902.11 of the Manual,\8\ an AC remaining 
listed on the Exchange upon consummation of its Business Combination 
had to pay additional listing fees in relation to any additional shares 
issued in connection with the Business Combination. In such instances, 
the AC was faced with the anomalous situation where there would be no 
listing fee burden associated with a transfer to another exchange but 
it would be required to pay significant additional listing fees if it 
remained on its incumbent exchange. Consequently, to eliminate this 
disparate treatment of companies listing after a Business Combination, 
the Exchange amended Section 902.11 of the Manual to provide that any 
AC remaining listed on the Exchange upon consummation of its Business 
Combination would no longer be subject to any additional listing fees 
with respect to any shares issued in connection with such Business 
Combination.
---------------------------------------------------------------------------

    \5\ See Section 902.02 of the Manual.
    \6\ See Section 140 of the NYSE American Company Guide.
    \7\ See NASDAQ Marketplace Rule 5910(7) [sic].
    \8\ See Securities Exchange Act Release No. 82731 (February 16, 
2018), 83 FR 8140 (February 23, 2018) (SR-NYSE-2018-06).
---------------------------------------------------------------------------

    The Exchange has identified another anomaly in the fees payable by 
an AC if it chooses to remain on the NYSE at the time of its Business 
Combination rather than transfer to another exchange.

[[Page 19383]]

The Exchange has observed that it is not uncommon for an AC to seek to 
raise capital by selling shares in a private placement in conjunction 
with the consummation of its Business Combination. This additional 
capital is needed to provide sufficient liquidity for the AC to 
successfully operate its new business after the Business Combination. 
The private placement generally closes at the same time as the 
consummation of the Business Combination and the closing of the private 
placement is contractually conditioned on such consummation. Under 
current Exchange rules, the AC would be required to pay listing fees 
with respect to the shares issued in any such private placement. By 
contrast, if the AC chose to transfer to another listing venue at the 
time of consummation of its Business Combination, the other market 
would charge no listing fees on those shares as they would be subject 
to the listing fee exemption all of the markets apply to any shares 
outstanding at the time of transfer. As this anomaly would impose a 
cost on the AC if it remained on the NYSE where none would be incurred 
if the company chose to transfer, the Exchange proposes to amend 
Section 902.11 to provide that ACs remaining listed after consummation 
of their Business Combination will not be required to pay listing fees 
in relation to the issuance of any additional shares in a transaction 
which is occurring at the same time as the Business Combination with a 
closing contractually contingent on the consummation of the Business 
Combination.\9\
---------------------------------------------------------------------------

    \9\ The Exchange believes that it is appropriate to provide this 
waiver to an AC at the time of its Business Combination and not to 
an operating company that would also be subject to additional 
listing fees in connection with a share issuance subsequent to 
listing. In the Exchange's experience, there is generally no 
parallel to the Business Combination in the life cycle of an 
operating company that would cause it to reconsider its listing 
venue at the time it issued additional shares, so the anomaly the 
Exchange seeks to address in relation to ACs is not relevant to 
operating companies.
---------------------------------------------------------------------------

    The Exchange does not expect the revenues it forgoes as a result of 
the proposed waiver to negatively affect its ability to conduct its 
regulatory program.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\10\ in general, and furthers the 
objectives of Sections 6(b)(4) \11\ of the Act, in particular, in that 
it is designed to provide for the equitable allocation of reasonable 
dues, fees, and other charges and is not designed to permit unfair 
discrimination 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) of the Act, in particular in 
that it is designed to promote just and equitable principles of trade, 
to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is consistent 
with Sections 6(b)(4) and 6(b)(5) of the Act in that it represents an 
equitable allocation of fees and does not unfairly discriminate among 
listed companies. In particular, the Exchange notes that the proposed 
amendment is not unfairly discriminatory as it will result in an AC 
that remains listed on the Exchange after its Business Combination 
being treated the same as an AC that transfers to the Exchange from 
another listing venue. The Exchange also believes the proposed rule 
change is not discriminatory with respect to listed operating 
companies, as operating companies generally do not have an event in 
their life cycle parallel to the Business Combination for an AC which 
would normally give rise to a reconsideration of the company's listing 
venue.

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 purpose of the Act. The proposed rule change does 
not impose any burden on competition, as it will have the effect of 
treating an AC that remains listed on the Exchange after its Business 
Combination the same for fee purposes as an AC that transfers to the 
Exchange from another listing venue or transfers to another listing 
venue at that time.

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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \13\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-2018-14 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2018-14. 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 website (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

[[Page 19384]]

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 website 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 
such filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change. Persons submitting comments are cautioned that we do 
not redact or edit personal identifying information from comment 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NYSE-2018-14, and should be submitted on or before May 23, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-09262 Filed 5-1-18; 8:45 am]
 BILLING CODE 8011-01-P



                                               19382                          Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices

                                               writing within 60 days of this                           II. Self-Regulatory Organization’s                     management team and significantly
                                               publication.                                             Statement of the Purpose of, and                       change its board of directors and it will
                                                 An agency may not conduct or                           Statutory Basis for, the Proposed Rule                 often have a significantly different
                                               sponsor, and a person is not required to                 Change                                                 shareholder base after the Business
                                               respond to, a collection of information                     In its filing with the Commission, the              Combination than it had as an AC. In
                                               under the PRA unless it displays a                       self-regulatory organization included                  effect, an AC after its Business
                                               currently valid OMB control number.                      statements concerning the purpose of,                  Combination is a completely different
                                                 Please direct your written comments                    and basis for, the proposed rule change                company and it is for this reason that
                                               to: Pamela Dyson, Director/Chief                         and discussed any comments it received                 the board and management of the
                                               Information Officer, Securities and                      on the proposed rule change. The text                  company after the transaction would
                                               Exchange Commission, c/o Remi Pavlik-                    of those statements may be examined at                 want to reconsider the positioning of the
                                               Simon, 100 F Street NE, Washington,                      the places specified in Item IV below.                 company in many respects, including its
                                               DC 20549, or send an email to: PRA_                      The Exchange has prepared summaries,                   listing venue.
                                               Mailbox@sec.gov.                                         set forth in sections A, B, and C below,                  The market for the retention or
                                                                                                        of the most significant parts of such                  transfer to another exchange of these
                                                 Dated: April 24, 2018.
                                                                                                        statements.                                            companies is very competitive and a
                                               Eduardo A. Aleman,                                                                                              number of transfers to a new listing
                                               Assistant Secretary.                                     A. Self-Regulatory Organization’s                      venue have occurred in recent times in
                                               [FR Doc. 2018–09093 Filed 5–1–18; 8:45 am]               Statement of the Purpose of, and                       connection with the completion of an
                                               BILLING CODE 8011–01–P                                   Statutory Basis for, the Proposed Rule                 AC’s Business Combination. The listing
                                                                                                        Change                                                 rules of the Exchange,5 NYSE
                                                                                                        1. Purpose                                             American 6 and NASDAQ Stock
                                               SECURITIES AND EXCHANGE                                                                                         Market 7 all provide for a waiver of all
                                               COMMISSION                                                  Section 102.06 of the Manual                        initial listing fees in connection with a
                                                                                                        provides for the listing of companies                  transfer from another national securities
                                               [Release No. 34–83117; File No. SR–NYSE–                 (‘‘Acquisition Companies’’ or ‘‘ACs’’)                 exchange, so an AC moving its listing
                                               2018–14]                                                 with no prior operating history that                   upon consummation of its Business
                                                                                                        conduct an initial public offering of                  Combination never has to pay any
                                               Self-Regulatory Organizations; New                       which at least 90% of the proceeds,                    listing fees in connection with such
                                               York Stock Exchange LLC; Notice of                       together with the proceeds of any other                transfer or the issuance of any new
                                               Filing and Immediate Effectiveness of                    concurrent sales of the AC’s equity                    shares at the time of its Business
                                               Proposed Rule Change To Amend                            securities, will be held in a trust                    Combination. However, until a recent
                                               Section 902.11 of the Exchange’s                         account controlled by an independent                   amendment to Section 902.11 of the
                                               Listed Company Manual Concerning                         custodian until consummation of a                      Manual,8 an AC remaining listed on the
                                               Fees Applicable to Acquisition                           business combination. The business                     Exchange upon consummation of its
                                               Companies for Shares Issued                              combination can be in the form of a                    Business Combination had to pay
                                               Contingent on the Consummation of a                      merger, capital stock exchange, asset                  additional listing fees in relation to any
                                               Business Combination                                     acquisition, stock purchase,                           additional shares issued in connection
                                                                                                        reorganization, or similar business                    with the Business Combination. In such
                                               April 26, 2018.                                          combination with one or more operating                 instances, the AC was faced with the
                                                  Pursuant to Section 19(b)(1) 1 of the                 businesses or assets (a ‘‘Business                     anomalous situation where there would
                                               Securities Exchange Act of 1934 (the                     Combination’’) with a fair market value                be no listing fee burden associated with
                                               ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                   equal to at least 80% of the net assets                a transfer to another exchange but it
                                               notice is hereby given that, on April 16,                held in trust (net of amounts disbursed                would be required to pay significant
                                               2018, New York Stock Exchange LLC                        to management for working capital                      additional listing fees if it remained on
                                               (‘‘NYSE’’ or the ‘‘Exchange’’) filed with                purposes and excluding the amount of                   its incumbent exchange. Consequently,
                                               the Securities and Exchange                              any deferred underwriting discount                     to eliminate this disparate treatment of
                                               Commission (the ‘‘Commission’’) the                      held in trust). A listed AC may remain                 companies listing after a Business
                                               proposed rule change as described in                     listed upon consummation of its                        Combination, the Exchange amended
                                               Items I, II, and III below, which Items                  Business Combination, provided it                      Section 902.11 of the Manual to provide
                                               have been prepared by the self-                          meets the criteria specified in Section                that any AC remaining listed on the
                                               regulatory organization. The                             802.01B of the Manual.                                 Exchange upon consummation of its
                                               Commission is publishing this notice to                     In the experience of the Exchange, an               Business Combination would no longer
                                               solicit comments on the proposed rule                    AC will frequently reconsider its listing              be subject to any additional listing fees
                                               change from interested persons.                          venue in connection with the                           with respect to any shares issued in
                                                                                                        consummation of its Business                           connection with such Business
                                               I. Self-Regulatory Organization’s                        Combination.4 The Business                             Combination.
                                               Statement of the Terms of the Substance                  Combination is a transformative event                     The Exchange has identified another
                                               of the Proposed Rule Change                              in the life cycle of an AC, when it                    anomaly in the fees payable by an AC
                                                  The Exchange proposes to amend                        becomes an operating company instead                   if it chooses to remain on the NYSE at
                                               Rule 902.11. The proposed rule change                    of a blank check company. In                           the time of its Business Combination
                                               is available on the Exchange’s website at                connection with that transformation, an                rather than transfer to another exchange.
daltland on DSKBBV9HB2PROD with NOTICES




                                               www.nyse.com, at the principal office of                 AC will frequently put in place a new
                                               the Exchange, and at the Commission’s                                                                             5 See Section 902.02 of the Manual.
                                                                                                                                                                 6 See Section 140 of the NYSE American
                                               Public Reference Room.                                     4 The  Exchange began to list ACs on a regular
                                                                                                        basis in the last year, so the practice of ACs         Company Guide.
                                                                                                                                                                 7 See NASDAQ Marketplace Rule 5910(7) [sic].
                                                                                                        changing listing venue at the time of their Business
                                                 1 15 U.S.C. 78s(b)(1).                                 Combination has not yet involved any companies           8 See Securities Exchange Act Release No. 82731
                                                 2 15 U.S.C. 78a.                                       transferring away from the NYSE in those               (February 16, 2018), 83 FR 8140 (February 23, 2018)
                                                 3 17 CFR 240.19b–4.                                    circumstances.                                         (SR–NYSE–2018–06).



                                          VerDate Sep<11>2014    22:14 May 01, 2018   Jkt 244001   PO 00000   Frm 00172   Fmt 4703   Sfmt 4703   E:\FR\FM\02MYN1.SGM     02MYN1


                                                                               Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices                                            19383

                                               The Exchange has observed that it is not                 equitable allocation of reasonable dues,              III. Date of Effectiveness of the
                                               uncommon for an AC to seek to raise                      fees, and other charges and is not                    Proposed Rule Change and Timing for
                                               capital by selling shares in a private                   designed to permit unfair                             Commission Action
                                               placement in conjunction with the                        discrimination among its members and                     The foregoing rule change is effective
                                               consummation of its Business                             issuers and other persons using its                   upon filing pursuant to Section
                                               Combination. This additional capital is                  facilities. The Exchange also believes                19(b)(3)(A) 12 of the Act and
                                               needed to provide sufficient liquidity                   that the proposed rule change is                      subparagraph (f)(2) of Rule 19b–4 13
                                               for the AC to successfully operate its                   consistent with Section 6(b)(5) of the                thereunder, because it establishes a due,
                                               new business after the Business                          Act, in particular in that it is designed             fee, or other charge imposed by the
                                               Combination. The private placement                       to promote just and equitable principles              Exchange.
                                               generally closes at the same time as the                 of trade, to foster cooperation and                      At any time within 60 days of the
                                               consummation of the Business                             coordination with persons engaged in                  filing of such proposed rule change, the
                                               Combination and the closing of the                       regulating, clearing, settling, processing            Commission summarily may
                                               private placement is contractually                       information with respect to, and                      temporarily suspend such rule change if
                                               conditioned on such consummation.                        facilitating transactions in securities, to           it appears to the Commission that such
                                               Under current Exchange rules, the AC                     remove impediments to and perfect the                 action is necessary or appropriate in the
                                               would be required to pay listing fees                    mechanism of a free and open market                   public interest, for the protection of
                                               with respect to the shares issued in any                 and a national market system, and, in                 investors, or otherwise in furtherance of
                                               such private placement. By contrast, if                  general, to protect investors and the                 the purposes of the Act. If the
                                               the AC chose to transfer to another                      public interest.                                      Commission takes such action, the
                                               listing venue at the time of                                                                                   Commission shall institute proceedings
                                                                                                           The Exchange believes that the
                                               consummation of its Business                                                                                   under Section 19(b)(2)(B) 14 of the Act to
                                                                                                        proposed rule change is consistent with
                                               Combination, the other market would                                                                            determine whether the proposed rule
                                                                                                        Sections 6(b)(4) and 6(b)(5) of the Act in
                                               charge no listing fees on those shares as                                                                      change should be approved or
                                                                                                        that it represents an equitable allocation
                                               they would be subject to the listing fee                                                                       disapproved.
                                                                                                        of fees and does not unfairly
                                               exemption all of the markets apply to
                                                                                                        discriminate among listed companies. In               IV. Solicitation of Comments
                                               any shares outstanding at the time of
                                               transfer. As this anomaly would impose                   particular, the Exchange notes that the                 Interested persons are invited to
                                               a cost on the AC if it remained on the                   proposed amendment is not unfairly                    submit written data, views, and
                                               NYSE where none would be incurred if                     discriminatory as it will result in an AC             arguments concerning the foregoing,
                                               the company chose to transfer, the                       that remains listed on the Exchange                   including whether the proposed rule
                                               Exchange proposes to amend Section                       after its Business Combination being                  change is consistent with the Act.
                                               902.11 to provide that ACs remaining                     treated the same as an AC that transfers              Comments may be submitted by any of
                                               listed after consummation of their                       to the Exchange from another listing                  the following methods:
                                               Business Combination will not be                         venue. The Exchange also believes the
                                                                                                        proposed rule change is not                           Electronic Comments
                                               required to pay listing fees in relation to
                                               the issuance of any additional shares in                 discriminatory with respect to listed                   • Use the Commission’s internet
                                               a transaction which is occurring at the                  operating companies, as operating                     comment form (http://www.sec.gov/
                                               same time as the Business Combination                    companies generally do not have an                    rules/sro.shtml); or
                                                                                                        event in their life cycle parallel to the               • Send an email to rule-comments@
                                               with a closing contractually contingent
                                                                                                        Business Combination for an AC which                  sec.gov. Please include File Number SR–
                                               on the consummation of the Business
                                                                                                        would normally give rise to a                         NYSE–2018–14 on the subject line.
                                               Combination.9
                                                  The Exchange does not expect the                      reconsideration of the company’s listing              Paper Comments
                                               revenues it forgoes as a result of the                   venue.
                                                                                                                                                                • Send paper comments in triplicate
                                               proposed waiver to negatively affect its                 B. Self-Regulatory Organization’s                     to Secretary, Securities and Exchange
                                               ability to conduct its regulatory                        Statement on Burden on Competition                    Commission, 100 F Street NE,
                                               program.                                                                                                       Washington, DC 20549–1090.
                                                                                                           The Exchange does not believe that
                                               2. Statutory Basis                                       the proposed rule change will impose                  All submissions should refer to File
                                                                                                        any burden on competition that is not                 Number SR–NYSE–2018–14. This file
                                                  The Exchange believes that the
                                                                                                        necessary or appropriate in furtherance               number should be included on the
                                               proposed rule change is consistent with
                                                                                                        of the purpose of the Act. The proposed               subject line if email is used. To help the
                                               Section 6(b) of the Act,10 in general, and
                                                                                                        rule change does not impose any burden                Commission process and review your
                                               furthers the objectives of Sections
                                                                                                        on competition, as it will have the effect            comments more efficiently, please use
                                               6(b)(4) 11 of the Act, in particular, in that
                                                                                                        of treating an AC that remains listed on              only one method. The Commission will
                                               it is designed to provide for the
                                                                                                        the Exchange after its Business                       post all comments on the Commission’s
                                                  9 The Exchange believes that it is appropriate to
                                                                                                        Combination the same for fee purposes                 internet website (http://www.sec.gov/
                                               provide this waiver to an AC at the time of its          as an AC that transfers to the Exchange               rules/sro.shtml). Copies of the
                                               Business Combination and not to an operating
                                                                                                        from another listing venue or transfers               submission, all subsequent
                                               company that would also be subject to additional                                                               amendments, all written statements
                                               listing fees in connection with a share issuance         to another listing venue at that time.
                                               subsequent to listing. In the Exchange’s experience,                                                           with respect to the proposed rule
                                                                                                        C. Self-Regulatory Organization’s                     change that are filed with the
daltland on DSKBBV9HB2PROD with NOTICES




                                               there is generally no parallel to the Business
                                               Combination in the life cycle of an operating            Statement on Comments on the                          Commission, and all written
                                               company that would cause it to reconsider its            Proposed Rule Change Received From                    communications relating to the
                                               listing venue at the time it issued additional shares,
                                               so the anomaly the Exchange seeks to address in          Members, Participants, or Others                      proposed rule change between the
                                               relation to ACs is not relevant to operating
                                               companies.                                                 No written comments were solicited                    12 15 U.S.C. 78s(b)(3)(A).
                                                  10 15 U.S.C. 78f(b).                                  or received with respect to the proposed                13 17 CFR 240.19b–4(f)(2).
                                                  11 15 U.S.C. 78f(b)(4).                               rule change.                                            14 15 U.S.C. 78s(b)(2)(B).




                                          VerDate Sep<11>2014    22:14 May 01, 2018   Jkt 244001   PO 00000   Frm 00173   Fmt 4703   Sfmt 4703   E:\FR\FM\02MYN1.SGM    02MYN1


                                               19384                          Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices

                                               Commission and any person, other than                   I. Self-Regulatory Organization’s                     principle, the Exchange endeavors to
                                               those that may be withheld from the                     Statement of the Terms of Substance of                keep its rules corresponding to FINRA
                                               public in accordance with the                           the Proposed Rule Change                              rules as closely worded and structured
                                               provisions of 5 U.S.C. 552, will be                        The Exchange proposes to amend                     as possible to the FINRA rules on which
                                               available for website viewing and                       certain rules of the Rule 7000A Series                they are based. In certain instances,
                                               printing in the Commission’s Public                     concerning the Order Audit Trail                      such as FINRA Rule 7410(o)(2), which
                                               Reference Room, 100 F Street NE,                        System to make conforming and                         concerns an exception to the definition
                                               Washington, DC 20549 on official                        technical changes.                                    of a Reporting Member relating to
                                               business days between the hours of                         The text of the proposed rule change               members operating on equities floors,
                                               10:00 a.m. and 3:00 p.m. Copies of such                 is available on the Exchange’s website at             the Exchange has not copied those
                                               filing also will be available for                       http://nasdaq.cchwallstreet.com, at the               inapplicable FINRA rules. Generally,
                                               inspection and copying at the principal                 principal office of the Exchange, and at              the Exchange seeks to keep the Rule
                                               office of the Exchange. All comments                    the Commission’s Public Reference                     7000 Series consistent with the
                                               received will be posted without change.                 Room.                                                 applicable portions FINRA Rule 7040
                                               Persons submitting comments are                                                                               Series. The proposed changes will
                                                                                                       II. Self-Regulatory Organization’s                    harmonize Nasdaq rules with analogous
                                               cautioned that we do not redact or edit                 Statement of the Purpose of, and
                                               personal identifying information from                                                                         FINRA rules, which have changed since
                                                                                                       Statutory Basis for, the Proposed Rule                the Exchange first adopted its rules.
                                               comment submissions. You should                         Change
                                               submit only information that you wish                                                                         First Change
                                               to make available publicly. All                            In its filing with the Commission, the
                                               submissions should refer to File                        Exchange included statements                             The Exchange is proposing to amend
                                               Number SR–NYSE–2018–14, and                             concerning the purpose of and basis for               Rule 7410A(o)(1)(A) to harmonize the
                                               should be submitted on or before May                    the proposed rule change and discussed                rule with FINRA Rule 7410(o)(1)(A).
                                               23, 2018.                                               any comments it received on the                       Rule 7410A(o) provides the definition of
                                                                                                       proposed rule change. The text of these               ‘‘Reporting Member,’’ which means a
                                                 For the Commission, by the Division of                statements may be examined at the
                                               Trading and Markets, pursuant to delegated                                                                    member that receives or originates an
                                                                                                       places specified in Item IV below. The                order and has an obligation to record
                                               authority.15                                            Exchange has prepared summaries, set                  and report information under Rules
                                               Eduardo A. Aleman,                                      forth in sections A, B, and C below, of               7440A and 7450A. Rule 7410A(o)(1)
                                               Assistant Secretary.                                    the most significant aspects of such                  provides an exception to the general
                                               [FR Doc. 2018–09262 Filed 5–1–18; 8:45 am]              statements.                                           definition if the member meets four
                                               BILLING CODE 8011–01–P                                  A. Self-Regulatory Organization’s                     conditions. The first condition the
                                                                                                       Statement of the Purpose of, and                      member must meet is that the member
                                                                                                       Statutory Basis for, the Proposed Rule                engages in a non-discretionary order
                                               SECURITIES AND EXCHANGE                                 Change                                                routing process, pursuant to which it
                                               COMMISSION                                                                                                    immediately routes, by electronic or
                                                                                                       1. Purpose
                                                                                                                                                             other means, all of its orders to a single
                                               [Release No. 34–83115; File No. SR–                        The Exchange is proposing to make                  receiving Reporting Member. On May
                                               NASDAQ–2018–030]                                        the following three changes to the Rule               12, 2014, FINRA amended FINRA Rule
                                                                                                       7000A Order Audit Trail Series: (1)                   7410(o)(1)(A) to allow a member to
                                               Self-Regulatory Organizations; The                      Amend Rule 7410A(o)(1)(A) to                          route its orders to two receiving
                                               Nasdaq Stock Market LLC; Notice of                      harmonize the rule with FINRA Rule                    Reporting Members, if two conditions
                                               Filing and Immediate Effectiveness of                   7410(o)(1)(A); (2) correct rule citations             were met.3 First, the orders are routed
                                               Proposed Rule Change To Amend                           in Rules 7430A and 7450A; and (3)                     by the member to each receiving
                                               Certain Rules of the Rule 7000A Series                  delete the rule text under Rule 7470A,                Reporting Member on a pre-determined
                                               To Make Conforming and Technical                        which lapsed in 2015.                                 schedule approved by FINRA. Second,
                                               Changes                                                    The Exchange’s Rule 7000A Series                   the FINRA member’s orders are routed
                                                                                                       imposes an obligation on Exchange                     to two receiving Reporting Members
                                                                                                       members to record in electronic form                  pursuant to the schedule for a time
                                               DATES:   April 26, 2018.                                and report to FINRA on a daily basis                  period not to exceed one year. The rule
                                                  Pursuant to Section 19(b)(1) of the                  certain information with respect to                   change permits FINRA members to
                                               Securities Exchange Act of 1934                         orders originated, received, transmitted,             continue to rely on the exception from
                                               (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 modified, canceled, or executed by                    the definition of Reporting Member if,
                                               notice is hereby given that on April 17,                members in Nasdaq-listed stocks.                      for a limited time, the member routes
                                               2018, The Nasdaq Stock Market LLC                       FINRA’s Order Audit Trail System                      orders to two different Reporting
                                               (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the             (‘‘OATS’’) captures this order                        Members, provided the criteria are met.
                                               Securities and Exchange Commission                      information and integrates it with quote              FINRA noted in adopting the change
                                               (‘‘Commission’’) the proposed rule                      and transaction information to create a               that the rule was intended to
                                               change as described in Items I, II, and                 time-sequenced record of orders, quotes,              accommodate introducing firms that
                                               III below, which Items have been                        and transactions. This information is                 transition to a different clearing firm
                                               prepared by the Exchange. The                           used by FINRA staff to conduct                        over time and, during the transition,
daltland on DSKBBV9HB2PROD with NOTICES




                                               Commission is publishing this notice to                 surveillance and investigations of                    route their orders two different clearing
                                               solicit comments on the proposed rule                   members for potential violation of                    firms, both of which report the
                                               change from interested persons.                         Exchange rules, federal securities laws,              introducing firm’s information to OATS
                                                                                                       and FINRA rules.
                                                 15 17 CFR 200.30–3(a)(12).                               The Exchange adopted the Rule                        3 See Securities Exchange Act Release No. 72191
                                                 1 15 U.S.C. 78s(b)(1).                                7000A Series to copy FINRA OATS                       (May 20, 2014), 79 FR 30219 (May 27, 2014) (SR–
                                                 2 17 CFR 240.19b–4.                                   rules, where appropriate. As a general                FINRA–2014–024).



                                          VerDate Sep<11>2014   22:14 May 01, 2018   Jkt 244001   PO 00000   Frm 00174   Fmt 4703   Sfmt 4703   E:\FR\FM\02MYN1.SGM   02MYN1



Document Created: 2018-05-02 00:49:51
Document Modified: 2018-05-02 00:49:51
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 Citation83 FR 19382 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR