[Federal Register Volume 65, Number 248 (Tuesday, December 26, 2000)]
[Notices]
[Pages 81552-81553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32805]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43730; File No. SR-NYSE-00-54]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc., Amending Section 807 of Its Listed Company Manual

December 18, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 29, 2000, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Exchange filed the proposal pursuant to Section 
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(1) thereunder,\4\ which 
renders the proposal effective upon filing with the Commission. 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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19(b)-4(f)(1).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its Listed Company Manual, Section 
807, Voluntary Transfer to Another Exchange by Company That Falls Below 
Criteria for Continued Listing, to state that the Exchange will daily 
disseminate ticker and information notices, and provide similar 
information on the Exchange's website, reflecting the status of the 
securities of a company which the Exchange has determined no longer 
meets its continued listing criteria and which has voluntarily 
undertaken to transfer the listing of its securities to another 
national securities exchange.
    The text of the proposed rule change is available upon request from 
the Office of the Secretary, the NYSE, or the Commission.

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

    In its filing with the Commission, the Exchange 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 these 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 aspects of such 
statements.

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

1. Purpose
    In May 2000, the Commission approved amendments to the Exchange's 
procedures for delisting securities and handling related issuer 
appeals.\5\ In its proposal filed with the Commission, the Exchange 
stated its belief that it is important for investors to have timely 
notice whenever the Exchange determines that an issuer's listed 
securities no longer meet the NYSE's continued listing criteria or when 
the Exchange has initiated delisting proceedings against an issuer for 
any reason. The Exchange therefore proposed, among other things, to 
attach an identifier suffix (.DL) to the ticker symbol of a company 
during the transition phase in which, having failed to meet the NYSE's 
continued listing criteria, such company undertook to transfer the 
listing of its securities to another national securities exchange.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 42863 (May 30, 
2000), 65 FR 36488 (June 8, 2000).
---------------------------------------------------------------------------

    The Exchange subsequently determined that, without making 
significant and costly changes to its systems to accommodate the 
identifier suffix, appending such a suffix would in fact change a 
company's ticker symbol.\6\ In other words, if the suffix were added to 
a subject company's ticker symbol, an investor or broker would have to 
know to enter the ``new'' symbol (with .DL suffix) into a quotation 
device in order to obtain quotation or last sale information. Entering 
the ``former'' symbol of one, two, or three letters (without the 
suffix) would elicit the message ``security not found.'' The NYSE felt 
that this possible confusion about a company's ticker symbol would not 
meet its stated goal of informing interested parties about the status 
of the securities of a company subject to delisting. In addition, the 
Exchange has noted that clearance and settlement systems do not 
recognize non-alphabetic characters in ticker symbols. The use of the 
.DL suffix might therefore give rise to possible confusion between a 
symbol bearing the suffix and another symbol that uses DL as its last 
two characters.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 43442 (Oct. 13, 
2000), 65 FR 63280 (Oct. 23, 2000) (notice of filing and immediate 
effectiveness of proposed rule change by the NYSE to amend its 
Listed Company Manual, Section 804).
---------------------------------------------------------------------------

    The Exchange has stated that, even if the necessary work were done 
to its systems to permit the use of a suffix without effecting a symbol 
change, it would remain concerned that the added suffix might not be 
carried by every vendor. This potential for inconsistency, like the 
possible confusion about a company's ticker symbol, would undermine the 
Exchange's motive of better disclosure in seeking to employ the 
identifier suffix.
    As a result of these realizations, the Exchange has not yet 
implemented the amended procedure previously approved by the 
Commission. In order to do so now, the Exchange proposes to employ the 
following mechanisms to inform investors when a company that fails to 
meet NYSE continued listing criteria has undertaken to transfer listing 
of its securities to another national securities exchange:
    a. The Exchange will circulate a ticker notice each day prior to 
the opening, specifying the delisting status of each subject company;
    b. The Exchange will distribute the same information notice daily 
via the Exchange's online information notices system to vendors, member 
firms, and other interested parties;
    c. The Exchange will post a subject company's delisting status and 
information on the Exchange's web site.
    The Exchange believes that implementing these mechanisms will 
achieve better dissemination of information about companies subject to 
delisting to all market participants, both professional and non-
professional, than would use of the .DL suffix previously proposed.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(5) of the Act \7\ in general and

[[Page 81553]]

furthers the objectives of Section 6(b)(5) of the Act \8\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in 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.
---------------------------------------------------------------------------

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

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.

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \9\ and Rule 19b-4(f)(1) thereunder because 
the proposed rule change constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule.\10\ At any time within 60 days of the 
filing of such proposed rule change, the Commission may summarily 
abrogate such rule change if its 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 purpose of 
the Act.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 17 CFR 240.19b-4(f)(1).
    \11\ In its filing with the Commission, the Exchange 
inadvertently included the statement that the proposed new 
notification procedures would be implemented with any delisting 
determination made after August 10, 2000. The Exchange notes that 
the proposal should instead become effective upon filing with the 
Commission. Telephone conversation between Elena Daly, Assistant 
General Counsel, NYSE, and Florence Harmon, Senior Special Counsel, 
Division of Market Regulation, Commission, on Dec. 5, 2000.
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-0609. 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 inspection and copying in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
NYSE. All submissions should refer to file number SR-NYSE-00-54 and 
should be submitted by January 16, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-32805 Filed 12-22-00; 8:45 am]
BILLING CODE 8010-01-M