[Federal Register Volume 65, Number 205 (Monday, October 23, 2000)]
[Notices]
[Pages 63280-63281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27136]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43442; File No. SR-NYSE-00-40]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Regarding Section 804 of the Exchange's Listed Company Manual

October 13, 2000.
    Pursuant to section 19(b)(1) of the Securities Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on September 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 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\ 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's amended delisting appeal procedures provide for 
notice regarding the status of an affected company. In lieu of the 
ticker symbol suffix originally proposed,\3\ the Exchange proposes to 
utilize a combination of ticker and information notices and web site 
information to supplement the press release notice provided for in 
Section 804 of the NYSE Listed Company Manual.
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    \3\ See Securities Exchange Act Release No. 42863 (May 30, 
2000), 65 FR 36488 (June 8, 2000) (proposing to append an identifier 
suffix to the ticker symbols of securities that are pending 
delisting status or that have been determined by Exchange staff to 
warrant suspension and delisting).
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    The text of the proposed rule change is available at the Office of 
the Secretary, the Exchange and at 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 a filing made last year and recently approved by the Commission, 
the Exchange amended its procedures for delisting a security and the 
accompanying Exchange appeals process available to the issuer.\4\ In 
addition to providing that securities may continue trading pending an 
appeal, the Exchange proposed to append a suffix (.DL) to the ticker 
symbol of the security involved. The indicator was one of the ways the 
Exchange intended to inform the investing public and investment 
decision-makers that this particular company was no longer in 
compliance with NYSE continued listing standards and that the delisting 
of the security was pending and, when applicable, subject to appeal to 
the Exchange's board.
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    \4\ Id.
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    The Exchange has now determined that, absent significant systems 
changes that would require considerable time and expense, appending a 
suffix would in fact change a company's ticker symbol. Therefore, an 
investor or broker would have to know to enter the symbol with a .DL 
into a quotation device to obtain a quote or see the last sale. 
Entering the normal one, two or three letter symbol would elicit the 
message ``security not found.'' This would not meet the Exchange's goal 
of informing interested parties of the status of the security. In 
addition, clearance and settlement systems do not recognize a non-alpha 
character in a ticker symbol, so there would be confusion between a 
security with a .DL suffix and another security with a different, 
longer ticker symbol that uses .DL as its last two characters.
    Even if the systems work were done to allow use of the suffix 
without a complete symbol change, the Exchange is concerned that it 
could not be confident that the suffix would be carried by every 
vendor. This would obviate the purpose behind the use of the suffix.
    As a result, the Exchange has not yet implemented the amended 
procedures. In order to do so, in lieu of the .DL suffix, the Exchange 
proposes to employ the following mechanisms to achieve the information 
dissemination contemplated by the rule:
    a. The Exchange proposes to circulate a ticker notice each day 
prior to the opening, specifying the delisting status of each company 
in question.
    b. The Exchange proposes to have the same information notice 
distributed daily via the Exchange's online information notices system 
to vendors, member firms and other interested parties notifying them of 
the status of the listed company.
    c. The Exchange proposes to have a company's delisting status noted 
with the company information on the Exchange's web site.
    The Exchange believes that these steps will better disseminate 
information to all market participants, both professional and 
nonprofessional, on the subject companies than would the .DL suffix. 
The Exchange also believes that it is important to note that the entire 
notification process begins with a press release regarding the 
delisting determination made by the Exchange staff. The public is then 
updated with further press releases when a company decides to appeal, 
and when that appeal is decided. As a result, that record will be 
available to anyone who checks for news on the company.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act \5\ in general and furthers the objectives of 
section 6(b)(5) of the Act \6\ 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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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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.

C. Self-Regulatory Organization's 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.

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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 \7\ 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.\8\ At any time within 60 days of the 
filing of such proposed rule change, the Commission may summarily 
abrogate 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 purpose of 
the Act.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(i).
    \8\ 17 CFR 240.19b-4(f)(1).
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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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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 No. SR-NYSE-00-40 and should 
be submitted by November 13, 2000.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-2(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-27136 Filed 10-20-00; 8:45 am]
BILLING CODE 8010-01-M