Document ID: SEC-2016-0514-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plans: Financial Industry Regulatory Authority, Inc., et al.
Posted Date: 2016-03-23T04:00Z

[Federal Register Volume 81, Number 56 (Wednesday, March 23, 2016)]
[Notices]
[Pages 15587-15588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06455]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77395; File No. 4-533]

Joint Industry Plan; Order Approving Amendment No. 3 to the 
National Market System Plan for the Selection and Reservation of 
Securities Symbols Submitted by Financial Industry Regulatory 
Authority, Inc., BATS Exchange, Inc., BOX Options Exchange, LLC, 
Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, 
Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., International 
Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., 
The Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York 
Stock Exchange, LLC, NYSE MKT, LLC, and NYSE Arca, Inc.

March 17, 2016.

I. Introduction

    On August 24, 2015, Financial Industry Regulatory Authority, Inc. 
(``FINRA''), on behalf of itself and the following parties to the 
National Market System (``NMS'') Plan for the Selection and Reservation 
of Securities Symbols (the ``Plan''): BATS Exchange, Inc., BOX Options 
Exchange, LLC, Chicago Board Options Exchange, Incorporated, Chicago 
Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., 
International Securities Exchange, LLC, NASDAQ OMX BX, Inc., NASDAQ OMX 
PHLX, Inc., The Nasdaq Stock Market LLC, National Stock Exchange, Inc., 
New York Stock Exchange, LLC, NYSE MKT, LLC, and NYSE Arca, Inc. (each 
a ``Party'' and collectively with FINRA, the ``Parties''), filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
Section 11A of the Securities Exchange Act of 1934 (``Act'') \1\ and 
Rule 608 thereunder,\2\ an amendment (``Amendment No. 3'') to the 
Plan.\3\ Amendment No. 3 was published for comment in the Federal 
Register on February 18, 2016.\4\ The Commission received no comment 
letters on this proposal. This Order approves Amendment No. 3 to the 
Plan.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The Plan is an NMS plan approved by the Commission pursuant 
to Section 11A of the Act and Rule 608 thereunder. See Securities 
Exchange Act Release No. 58904 (November 6, 2008), 73 FR 67218 
(November 13, 2008).
    \4\ See Securities Exchange Act Release No. 77123 (February 11, 
2016), 81 FR 8264 (February 18, 2016) (``Amendment No. 3 Notice'').
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II. Background and Description of the Proposal

A. Background

    The Plan was created to establish a uniform system for the 
selection and reservation of securities symbols and sets forth, among 
other things, the process for securing perpetual and limited-time 
reservations (``List A and List B''), the use of a waiting list, the 
right to reuse a symbol, and the ability to request the release of a 
symbol. Currently, Section IV(d) of the Plan outlines the procedures 
with respect to reuse of a symbol, and requires that in the event a 
Party ceases to use a symbol, such symbol will be automatically 
reserved by that Party for a period of 24 months, notwithstanding any 
other limits on the number of reserved symbols specified in the Plan. 
However, in the event that the Party ceasing to use the symbol neither: 
(1) Places the symbol on its List A or (2) uses the symbol within 24 
months, the symbol will be released for use pursuant to Section 
IV(b)(5) (Non-Use or Release of Symbols Within Time Period). In such 
instances, the symbol may be reused by a different Party to identify a 
new security in accordance with the procedures set forth in the Plan, 
but in no event may a symbol be reused to identify a new security if 
such use would cause investor confusion in the judgment of the party 
seeking to reuse the symbol.

B. Description of the Proposal

    In Amendment No. 3,\5\ the Parties propose to modify the Plan to 
revise Section IV(d) to provide that, where a Party ceases to use a 
symbol, such party may: (1) Elect to release the symbol, and (2) that 
such symbol may not be reused to identify a new security within 90 
calendar days from the last day of its use, without the consent of the 
Party that released the symbol. In addition, Amendment No. 3 proposes 
that a Party may not reuse (or consent to the reuse of) a symbol to 
identify a new security unless such Party reasonably determines that 
such use would not cause investor confusion.\6\
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    \5\ See Amendment No. 3 Notice, supra note 4, for a more 
detailed description of the proposed changes.
    \6\ In making a reasonable determination as to whether the reuse 
of a symbol would cause investor confusion, Parties would consider 
factors such as the level of recent activity in the old security, 
including trading frequency, volume and the number of market maker 
quotes. See Amendment No. 3 Notice, supra note 4, at 5.
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    Separately, Amendment No. 3 also includes several technical and 
ministerial proposed changes to provide current information about the 
name and

[[Page 15588]]

principal place of business of certain parties to the Plan.

III. Discussion

    After careful review, the Commission finds that Amendment No. 3 is 
appropriate in the public interest, for the protection of investors and 
the maintenance of fair and orderly markets, and to remove impediments 
to, and perfect the mechanisms of, a national market system. By 
allowing a Party to elect to release a symbol immediately after its 
discontinued use, Amendment No. 3 would encourage the efficient use of 
symbols to the benefit of the Parties and potential issuers. 
Additionally, the proposed symbol reuse process, which includes a 
presumptive 90-day waiting period as well as the requirement that a 
Party may not reuse (or consent to the reuse of) a symbol to identify a 
new security unless such Party reasonably determines that such use 
would not cause investor confusion, would help ensure that the reuse of 
symbols would not cause investor confusion. The Commission notes that 
the Parties have also stated that the amendment provides for a fair and 
orderly approach that would be applied consistently by all Parties to 
facilitate investor protection. Finally, the Commission believes that 
the proposed technical and ministerial changes should be adopted to 
reflect updated Party names and addresses to the Plan.

IV. Conclusion

    For the reasons discussed above, the Commission finds that 
Amendment No. 3 is appropriate in the public interest, for the 
protection of investors and the maintenance of fair and orderly 
markets, and to remove impediments to, and perfect the mechanisms of, a 
national market system, or otherwise in furtherance of the purposes of 
the Act.
    It is therefore ordered, pursuant to Section 11A of the Act, and 
the rules and regulations thereunder, that Amendment No. 3 to the Plan 
(File No. 4-553) be, and it hereby is, approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(29).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-06455 Filed 3-22-16; 8:45 am]
BILLING CODE 8011-01-P