Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices 58281 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(5). 

16 17 CFR 200.30–3(a)(12). 

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 240.19b–4(f)(5). 

Phlx XL participants from exposure to 

undue volatility risk respecting options 

positions. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 12 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 13

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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, by 

providing Phlx XL participants with 

additional protection from exposure to 

undue market risk through the Risk 

Monitor Mechanism. 

The Exchange further believes that the 

proposed rule change is consistent with 

the Act because the risk protection 

afforded Phlx XL participants by way of 

elimination of the long put/call and 

short put/call offsets should encourage 

them to quote options series with 

greater size, adding liquidity to the 

Exchange’s markets against which 

customers can trade. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

effects a change in an existing orderentry or trading system that: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not have the 

effect of limiting the access to or 

availability of the system, the proposed 

rule change has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 14 and subparagraph (f)(5) of Rule 

19b–4 thereunder.15

At any time within 60 days of the 

filing of the 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 the furtherance of the 

purposes of the Act. 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–Phlx–2008–69 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–Phlx–2008–69. This file 

number 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.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for 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 Phlx. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2008–69 and should 

be submitted on or before October 27, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23490 Filed 10–3–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58684; File No. SR– 

NASDAQ–2008–075] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Trading the Two-Character Ticker 

Symbol ‘‘TO’’ 

September 30, 2008. 

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 

September 19, 2008, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been substantially prepared by 

Nasdaq. Nasdaq filed the proposed rule 

change pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(5) 

thereunder,4 which renders it effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to trade the common 

stock of Tech/Ops Sevcon, Inc. on 

Nasdaq using the two-character symbol 

‘‘TO.’’ 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq 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 


jlentini on PROD1PC65 with NOTICES
58282 Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices 

5This includes securities listed on Nasdaq’s 

predecessor market, operated as a facility of the 

NASD. 6See Head Trader Alert 2005–133 (November 14, 

2005), available at: http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=hta2005–133 and Vendor 

Alert 2005–070 (November 14, 2005), available at: 

http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=nva2005–070. See also Head 

Trader Alert 2006–144 (September 29, 2006), 

available at: http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=hta2006–144, Head Trader 

Alert 2006–193 (November 16, 2006), available at: 

http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=hta2006–193 and Vendor 

Alert 2006–065 (October 4, 2006), available at: 

http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=nva2006–065. 

7Head Trader Alert 2007–050 (March 1, 2007), 

available at: http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=hta2007–050. 

8See Securities Exchange Act Release No. 55519 

(March 26, 2007) 72 FR 15737 (April 2, 2007) (SR– 

NASDAQ–2007–025). 

9See Securities Exchange Act Release No. 56028 

(July 9, 2007), 72 FR 38639 (July 13, 2007) 

(approving SR–NASDAQ–2007–031). Over 30 

companies with three-character symbols have listed 

on Nasdaq. 

10See Securities Exchange Act Release Nos. 

57696 (April 22, 2008), 73 FR 22987 (April 28, 

2008) (SR–NASDAQ–2008–034 relating to CA) and 

57875 (May 27, 2008), 73 FR 31524 (June 2, 2008) 

(SR–NASDAQ–2008–047 relating to HA). 11A market transfer will still be transparent to 

investors because, under the Commission’s rules, a 

company must announce the transfer of its listing 

on a Form 8–K. See Form 8–K, item 3.01(d). In 

addition, the issuer must publish notice of its intent 

to withdraw a class of securities from listing and/ 

or registration, along with its reasons for such 

withdrawal, via a press release and, if it has a 

publicly accessible Web site, on that Web site. See 

Rule 12d2–2(c)(2)(iii) under the Act, 17 CFR 

240.12d2–2(c)(2)(iii). 

12See, e.g., Darwin Professional Underwriters, Inc 

(from NYSE Arca to NYSE keeping the symbol DR), 

Chile Fund, Inc. (from NYSE to Amex keeping the 

symbol CH), and iShares NYSE 100 (from NYSE to 

NYSE Arca keeping the symbol NY). 

13See Securities Exchange Act Release No. 56037 

(July 10, 2007) 72 FR 39096 (July 17, 2007). 

14 15 U.S.C. 78(a). 

15 15 U.S.C. 78f(b)(5). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(5). 

in Item IV below. Nasdaq 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 

Historically, securities listed on 

Nasdaq have traded using four or five 

character symbols.5 In 2005, however, 

Nasdaq announced its intent to allow 

companies listed on Nasdaq to also use 

one, two or three character symbols 

beginning on January 31, 2007.6 This 

announcement was designed to provide 

market participants and vendors the 

time needed to make required changes 

to their own systems that may be 

affected by the change. Since February 

20, 2007, Nasdaq has had the ability to 

accept and distribute Nasdaq-listed 

securities with one, two or three 

character symbols. Nasdaq reminded 

market participants about this change 

again on March 1, 2007, stressing that 

‘‘[a]ll customers should have completed 

their coding and testing efforts to ensure 

their readiness to support 1-, 2- and 3- 

character NASDAQ-listed issues,’’ 7 and 

on March 22, 2007, Delta Financial 

Corporation transferred to Nasdaq from 

the American Stock Exchange and 

maintained its three-character symbol, 

DFC.8 Subsequently, the Commission 

approved a rule change to permit any 

company to transfer from another 

exchange to Nasdaq and maintain its 

three-character symbols.9 On April 28, 

2008, CA, Inc. transferred to Nasdaq 

from the New York Stock Exchange and 

maintained its two-character symbol, 

CA, and on June 2, 2008, Hawaiian 

Holdings, Inc. transferred to Nasdaq 

from the American Stock Exchange and 

maintained its two-character symbol, 

HA 10 Nasdaq states that there have been 

no trading problems reported to Nasdaq 

as a result of listing securities on 

Nasdaq with two-character or threecharacter symbols. 

Nasdaq now proposes to allow Tech/ 

Ops Sevcon, Inc., which currently 

trades on another domestic market with 

the two-character symbol TO, to transfer 

its common stock to Nasdaq and 

continue using that two-character 

symbol. Nasdaq believes that allowing 

this company to maintain its symbol 

will reduce investor confusion and 

promote competition among exchanges. 

Specifically, allowing Tech/Ops Sevcon 

to maintain its trading symbol will 

reduce investor confusion associated 

with its transfer to Nasdaq because 

investors will continue to be able to 

obtain quotations and execute trades 

using the same familiar symbol and will 

allow the issuer to maintain a symbol 

that has become a part of its identity to 

investors.11 Further, Nasdaq believes 

that permitting Tech/Ops Sevcon to 

maintain its symbol will enhance 

competition among exchanges by 

removing concerns about investor 

confusion surrounding its symbol from 

the factors a company must consider 

when choosing where to list its equities. 

This proposal is also consistent with the 

historical practice of allowing 

companies to maintain their symbols 

when they switch among national 

securities exchanges.12

Given the foregoing, Nasdaq believes 

that market participants were provided 

adequate notice of this change and are 

prepared to accommodate the trading of 

this company on Nasdaq using the 

symbol TO. Further, Nasdaq believes 

that any change to the symbol will cause 

confusion among investors and market 

participants. As such, Nasdaq proposes 

to begin trading the common stock of 

Tech/Ops Sevcon, Inc. on Nasdaq using 

the symbol TO on October 1, 2008. 

While this filing relates to the transfer 

of this issuer, Nasdaq remains 

committed to working with the 

Commission and other markets to 

establish an equitable and transparent 

symbol assignment plan.13

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,14 in 

general and with Section 6(b)(5) of the 

Act,15 in particular, in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 

impediments to a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. As described above, the 

proposed rule change will reduce 

investor confusion and encourage 

competition between national securities 

exchanges. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

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) 

of the Act 16 and Rule 19b–4(f)(5) 

thereunder 17 in that it effects a change 

to an order-entry or trading system that: 

(i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not have the effect of limiting 

the access to or availability of the 

system. As such, this proposed rule 

change is effective upon filing with the 

Commission. 

At any time within 60 days of the 

filing of a proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 


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Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices 58283 

18 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58430 

(August 27, 2008), 73 FR 51678 (‘‘Notice’’). 

4 In Amendment No. 1, NYSE requested that the 

Commission accelerate approval of the proposed 

rule change. Because Amendment No. 1 is technical 

in nature, the Commission is not publishing it for 

comment. 

5See Securities Exchange Act Release No. 58431 

(August 27, 2008), 73 FR 51681 (September 4, 

2008). The Commission today is approving NYSE 

Arca’s proposed rule change. See Securities 

Exchange Act Release No. 58681 (September 29, 

2008) (SR–NYSEArca–2008–90) (‘‘PO Plus 

Approval Order’’). 

On February 13, 2008, NYSE Arca filed a 

proposal to modify its PO Order pursuant to 

19(b)(3)(A), making it effective upon filing with the 

Commission. See Securities Exchange Act Release 

No. 57377 (February 25, 2008), 73 FR 11177 

(February 29, 2008) (SR–NYSEArca–2008–19). The 

Commission abrogated the proposal on April 11, 

2008, noting that it has, in the past, expressed 

concern about the potential for unfair competition 

and conflicts of interest between an exchange’s selfregulatory obligations and its commercial interests 

if an exchange were affiliated with one of its 

members, as well as the potential for unfair 

competitive advantage that the affiliated member 

could have by virtues of informational or 

operational advantages, or the ability to receive 

preferential treatment. See Securities Exchange Act 

Release No. 57648 (April 11, 2008), 73 FR 20981 

(April 17, 2008) at note 9 and accompanying text. 

The Commission noted that NYSE Arca’s filing 

raised this issue by expanding the activities of Arca 

Securities in sending orders to its affiliate, the 

NYSE, and therefore should be subject to notice and 

comment and review pursuant to Sections 19(b)(1) 

and 19(b)(2) of the Act. See id. at note 10 and 

accompanying text. Further, the Commission stated 

that the issue of whether the routing of PO Orders 

by Arca Securities to the NYSE is consistent with 

existing NYSE and NYSE Arca rules should be 

subject to notice and comment pursuant to Sections 

19(b)(1) and 19(b)(2) of the Act. See id. at note 11 

and accompanying text. 

6Amex will change its name to NYSE Alternext 

US in connection with the acquisition of Amex by 

NYSE Euronext. See Securities Exchange Act 

Release No. 58673 (September 29, 2008) (order 

approving a proposed rule change related to the 

acquisition of the Amex by NYSE Euronext) (SR– 

Amex–2008–62; SR–NYSE–2008–60) (‘‘NYSE 

Alternext US Order’’). The transaction is expected 

to close shortly. 

7See NYSE Arca Equities Rule 7.31(x). Currently, 

a PO Order entered for participation in the primary 

market opening must be entered before 6:28 a.m. 

(Pacific Time), and a PO Order entered for 

participation in the primary market re-opening after 

a trading halt must be entered after trading was 

halted on NYSE Arca and before the re-opening 

time. See id. 

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. 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2008–075 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–NASDAQ–2008–075. This 

file number 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.shtml ). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for 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 SR–NASDAQ–2008–075 and 

should be submitted on or before 

October 27, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23488 Filed 10–3–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58680; File No. SR–NYSE– 

2008–76] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Granting Accelerated Approval of 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, Amending 

NYSE Rule 2B To Establish 

Procedures Designed To Manage 

Potential Informational Advantages 

Resulting From the Affiliation Between 

the Exchange and Archipelago 

Securities L.L.C. 

September 29, 2008. 

I. Introduction 

On August 20, 2008, the New York 

Stock Exchange LLC (‘‘NYSE’’ or 

‘‘Exchange’’), filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change amending NYSE Rule 2B to 

establish procedures designed to 

manage potential informational 

advantages resulting from the affiliation 

between the Exchange and Archipelago 

Securities L.L.C. (‘‘Arca Securities’’), an 

NYSE affiliated member. On September 

4, 2008, the proposed rule change was 

published for comment in the Federal 

Register.3 The Commission received no 

comments on the proposed rule change. 

On September 25, 2008, NYSE filed 

Amendment No. 1.4 This order approves 

the proposed rule change, as modified 

by Amendment No. 1, on an accelerated 

basis. 

II. Background 

A. NYSE Arca’s PO Plus Proposal 

On August 20, 2008, NYSE Arca, Inc. 

(‘‘NYSE Arca’’) filed with the 

Commission a proposed rule change to 

expand the availability of its PO Order 

type (‘‘PO Plus Proposal’’).5 NYSE 

Arca’s PO Order is a market or limit 

order that is to be routed to the primary 

market in that security without first 

attempting to access liquidity on the 

NYSE Arca book. The PO Orders are 

routed to the primary market through 

NYSE Arca’s routing broker-dealer, Arca 

Securities, which is an affiliate of NYSE 

Arca as described more fully below. The 

‘‘primary market’’ may be the New York 

Stock Exchange LLC (‘‘NYSE’’) or the 

American Stock Exchange LLC 

(‘‘Amex’’),6 each of which, as described 

more fully below, also is (or will be) an 

affiliate of NYSE Arca and Arca 

Securities. 

Such orders, currently, may only be 

entered until a cut-off time established 

from time to time by the Exchange.7 In 

its PO Plus Proposal, NYSE Arca 


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