[Federal Register Volume 73, Number 17 (Friday, January 25, 2008)]
[Notices]
[Pages 4645-4647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1255]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57171; File No. 4-534]
Joint Industry Plan; American Stock Exchange LLC, Chicago Board
Options Exchange, Incorporated, International Securities Exchange, LLC,
New York Stock Exchange LLC, and NYSE Arca, Inc.; Notice of Filing of
Amendment No. 1 to the Proposed National Market System Plan for the
Selection and Reservation of Securities Symbols
January 18, 2008.
I. Introduction
On March 23, 2007, pursuant to Rule 608 of Regulation NMS under the
Act \1\ (``Rule 608''), American Stock Exchange LLC (``Amex''), New
York Stock Exchange LLC (``NYSE''), and NYSE Arca, Inc. (``NYSE Arca'')
filed with the Commission a proposed plan for the purpose of the
selection and reservation of securities symbols (``Three-Characters
Plan''). On March 23, 2007, The Nasdaq Stock Market, Inc. (``Nasdaq''),
National Association of Securities Dealers, Inc. (``NASD'') (n/k/a
Financial Industry Regulatory Authority, Inc. (``FINRA'')),\2\
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National Stock Exchange, Inc. (``NSX''), and Philadelphia Stock
Exchange, Inc. (``Phlx'') also filed with the Commission a proposed
plan for the purpose of the selection and reservation of securities
symbols (``Five-Characters Plan''). On April 23, 2007, the Chicago
Stock Exchange, Inc. (``CHX''), Nasdaq, NASD, NSX, and Phlx filed a
supplement to the Five-Characters Plan.\3\ The proposed plans were
published for comment in the Federal Register on July 17, 2007.\4\
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\1\ 17 CFR 242.608.
\2\ On July 26, 2007, the Commission approved a proposed rule
change filed by NASD to amend NASD's Certificate of Incorporation to
reflect its name change to Financial Industry Regulatory Authority
Inc., or FINRA, in connection with the consolidation of the member
firm regulatory functions of NASD and NYSE Regulation, Inc. See
Securities Exchange Act Release No. 56146 (July 26, 2007), 72 FR
42190 (August 1, 2007).
\3\ In the Supplement, CHX joined as a party proposing the Five-
Characters Plan. In addition, the Supplement contained a revised
version of the Five-Characters Plan. The parties to the Five-
Characters Plan revised the plan as follows: (i) Changed the
definition of securities for which an SRO must maintain facilities
for the quoting and trade reporting of such securities in order to
be party to the plan and corresponding changes throughout the plan
and (ii) deleted the statement that new parties to the plan would
pay an equal share of all development costs.
\4\ See Securities Exchange Act Release No. 56037 (July 10,
2007), 72 FR 39096 (``Joint Industry Plan Notice'').
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On August 1, 2007, Amex, Chicago Board Options Exchange,
Incorporated (``CBOE''), International Securities Exchange, LLC
(``ISE''), NYSE, and NYSE Arca filed Amendment No. 1 to the proposed
Three-Characters Plan (``Amendment No. 1''). The Commission requests
comment on Amendment No. 1 from interested persons.
II. Description of Amendment No. 1
Amendment No. 1 makes the following modifications to the proposed
Three-Characters Plan: (1) Adds two new parties to the proposed plan;
(2) amends the symbol portability provision of the proposed plan with
respect to three-character symbols; (3) clarifies that the Three-
Characters Plan covers reservations of one-, two-, and three-character
symbols for options under the OPRA Plan; and (4) minor, non-
substantive, technical changes, including re-naming the plan
administrator.
A. New Parties to the Plan
The Three-Characters Plan was originally submitted by Amex, NYSE,
and NYSE Arca. The Three-Characters Plan would grant the plan
participants the following symbol reservation rights: (1) NYSE and Amex
each would receive the right to reserve 200 symbols without any time or
other limitations or restrictions as ``perpetual reservations'' and
1,500 symbols for a limited time of 24 months as ``limited-time
reservations'' (2) all other parties would receive the right to reserve
40 perpetual reservations, and (3) NYSE Arca would receive the right to
reserve 500 limited-time reservations.\5\ Amendment No. 1 adds CBOE and
ISE as signatories to, and participants in, the proposed Three-
Characters Plan. In addition, Amendment No. 1 modified the proposed
limited-time reservation provision of the plan to grant CBOE the right
to reserve 500 limited-time reservations and ISE the right to reserve
200 limited-time reservations.\6\
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\5\ See Joint Industry Plan Notice supra note 4, at 39099-100
for additional details regarding perpetual reservations and limited-
time reservations.
\6\ See amended Section IV(b)(1)(B) of the Three-Characters
Plan.
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The Commission requests commenters' views on the amended provisions
to the proposed Three-Characters Plan that add CBOE and ISE as parties
to the plan and that would grant them the limited-time reservation
rights described above. The Commission also requests commenters' views
on the number of symbols a self-regulatory organization (``SRO'')
should be permitted to reserve as perpetual reservations or limited-
time reservations. In particular, the Commission requests commenters'
view on any basis on which it would be appropriate for certain SROs to
receive more reservations than other SROs. For example, should there be
a distinction in the number of limited-time reservations that non-
primary listing markets receive? If so, what factors should be taken
into account in allotting the number of limited-time reservations?
Finally, the Commission requests commenters' views on how these amended
provisions would affect new listing markets.
B. Symbol Portability
The proposed Three-Characters Plan originally provided that, if an
SRO lists a security that transferred from another SRO, the SRO from
which the issuer delisted its security would have the right to the
symbol for that security, unless it consents to the transfer of the
symbol to the other SRO. If the SRO to which the issuer transferred its
listing believes there is a compelling business reason why it should
have the rights to the symbol (if it is a two- or three-character
symbol, but not a one-character symbol), such SRO could submit to the
Processor the determination of which SRO shall have the rights in that
symbol.\7\ The Processor could only grant the rights in the symbol to
the new SRO if the Processor determines that such SRO's business
reasons for obtaining such rights substantially outweigh the business
needs of the other SRO to that symbol. The Processor's decision would
be final and not subject to appeal.
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\7\ The Three-Characters Plan would not permit disputes over
one-character symbols to be submitted to the Processor.
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Amendment No. 1 modifies this proposed portability provision with
respect to three-character symbols. Specifically, an SRO to which a
security that uses a three-character symbol transfers its listing would
have the rights to that three-character symbol,\8\ unless, in the new
SRO's discretion, it consents to allowing the former SRO to retain the
symbol. The participants to the Three-Character Plan noted that
Amendment No. 1 would comport the Three-Characters Plan with a Nasdaq
rule recently approved by the Commission, which permits an issuer that
has traded under a three-character symbol to continue to use that
three-character symbol if the issuer moves its listing to Nasdaq.\9\
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\8\ The new SRO would be required to use the three-character
symbol to identify the security transferred to its market.
\9\ See Amendment No. 1, Cover Letter at 2. See also Securities
Exchange Act Release No. 56028 (July 9, 2007), 72 FR 38639 (July 13,
2007) (SR-NASDAQ-2007-031) (approving a rule change to allow a
company that transfers its listing to Nasdaq to retain its three-
character symbol)..
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The Commission requests comment on the change in Amendment No. 1
regarding the portability of a three-character symbol to a new listing
market when an issuer transfers its listing. When an issuer moves its
listing to a new listing market, should either the former listing
market or the new listing market retain the right to use the issuer's
symbol? How would awarding the rights to the symbol to the former
listing market affect competition? How would awarding such rights to
the new listing market affect competition? Finally, the Commission
requests comment on whether one- and two-character symbols should be
subject to the same portability process as three-character symbols.
C. Covered Symbols
The proposed Three-Characters Plan originally stated that the plan
was intended to be the exclusive means of allocating and using symbols
of one-, two-, or three-characters, and none of such one-, two-, or
three-character symbols were to be allocated or used for securities
other than those reflected on ``Network A'' or ``Network B'' as those
terms are defined in the Consolidated Tape Association Plan (``CTA
Plan'').\10\ The original Three-Characters Plan also stated that its
Symbol Reservation System would cover the allocation of all
[[Page 4647]]
symbols used to common stocks, other securities or other information
disseminated to the public through the facilities operated by, or
pursuant to, among other plans, the Options Price Reporting Authority
(``OPRA''). Amendment No. 1 amends Section I(b) of the proposed Three-
Characters Plan to state that the proposed plan is intended to be the
exclusive means of allocating and using symbols of one-, two-, or
three-characters for, among other securities, options under OPRA. In
addition, Amendment No. 1 revises Section I(b) of the Three-Characters
Plan to state that, in the case of ``listed equity securities'' (as
Rule 600(b)(34) of Regulation NMS defines that term) no one-, two-, or
three-character symbols would be allocated or used other than for
``Network A'' or ``Network B'' ``Eligible Securities.''
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\10\ See Section I(b) of the original Three-Characters Plan.
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The Commission requests comment on the amended provision regarding
the proposed Three-Characters Plan's scope. In particular, the
Commission requests comment on whether it is appropriate that the
proposed scope of the Three-Characters Plan include options. Should the
Commission approve a plan solely covering equity security symbols or
should both equity and option security symbols be covered? Are there
other matters with respect to the scope of the plans that commenters
believe the Commission should consider? In particular, should only root
symbols be covered or should suffixes be included as well?
D. Name of the Plan Administrator
Amendment No. 1 also made a number of minor, non-substantive
technical changes, including modifying the name for the plan
administrator. The proposed Three-Characters Plan originally referred
to the plan administrator as the ``International Symbols Reservation
Authority (``ISRA'').'' Amendment No. 1 renamed the authority the
``Intermarket Symbols Reservation Authority (``ISRA'').'' The
Commission requests comment on the name of the plan administrator.
III. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed
Amendment No. 1 is consistent with the Act. The Commission invites
comments on whether the foregoing assures fair competition among all
parties, including new listing markets. 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 e-mail to [email protected]. Please include
File Number 4-534 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number 4-534. The file numbers
should be included on the subject line if e-mail 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/nms.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed plans that are filed
with the Commission, and all written communications relating to the
proposed plans 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, 100 F Street, NE., Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
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; 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 4-534 and should be submitted on or before
February 15, 2008.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E8-1255 Filed 1-24-08; 8:45 am]
BILLING CODE 8011-01-P