Document ID: SEC-2008-0129-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plan: American Stock Exchange LLC, et al.
Posted Date: 2008-01-25T05:00Z

[Federal Register: January 25, 2008 (Volume 73, Number 17)]
[
Notices]               
[Page 4645-4647]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ja08-144]                         

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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\

[[Page 4646]]

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 rule-comments@sec.gov. 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