Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Section 802.01E of the Listed Company Manual, 69617-69619 [05-22777]
Download as PDF
Federal Register / Vol. 70, No. 220 / Wednesday, November 16, 2005 / Notices
NASD will announce the effective
date of the proposed rule change in a
Notice to Members to be published no
later than 60 days following
Commission approval. The effective
date will be 30 days following
publication of the Notice to Members
announcing Commission approval.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,11 which
requires, among other things, that NASD
rules must be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
NASD believes that the proposed rule
change will reduce significant, longterm fails to deliver in the marketplace.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(a) By order approve such proposed
rule change, or
(b) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
The Commission notes that in Section
3210(b) of the proposed rule, consistent
with the application of Regulation SHO,
the NASD excludes from the close out
requirement of Section 3210(a) of the
proposed rule the amount of the fail to
deliver position that the participant of a
registered clearing agency had at a
registered clearing agency on the
11 15
U.S.C. 78o–3(b)(6).
VerDate Aug<31>2005
13:56 Nov 15, 2005
Jkt 208001
69617
settlement day immediately preceding
the day that the security became a nonreporting threshold security. The
Commission specifically requests
comment on this aspect of proposed
Rule 3210.
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6306 Filed 11–15–05; 8:45 am]
Electronic Comments
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing of Proposed Rule Change
Relating to Section 802.01E of the
Listed Company Manual
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2004–044 on the
subject line.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52760; File No. SR–NYSE–
2005–75]
November 10, 2005.
Pursuant to section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 2 and Rule 19b–4
thereunder,3 notice is hereby given that
Paper Comments
on October 26, 2005, the New York
• Send paper comments in triplicate
Stock Exchange, Inc. (‘‘Exchange’’ or
‘‘NYSE’’) filed with the Securities and
to Jonathan G. Katz, Secretary,
Exchange Commission (‘‘Commission’’
Securities and Exchange Commission,
or ‘‘SEC’’) the proposed rule change as
100 F Street, NE., Washington, DC
described in Items I, II, and III below,
20549–9303.
which items have been prepared by the
All submissions should refer to File
Exchange. The Commission is
Number SR–NASD–2004–044. This file
publishing this notice to solicit
number should be included on the
comments on the proposed rule change
subject line if e-mail is used. To help the
from interested persons.
Commission process and review your
I. Self-Regulatory Organization’s
comments more efficiently, please use
only one method. The Commission will Statement of the Terms of Substance of
post all comments on the Commission’s the Proposed Rule Change
Internet Web site (https://www.sec.gov/
The proposed rule filing reflects
rules/sro.shtml). Copies of the
amendments to the Listed Company
submission, all subsequent
Manual procedures applicable to
amendments, all written statements
companies that fail to file in a timely
with respect to the proposed rule
manner their annual report required by
change that are filed with the
the Act. The text of the proposed rule
Commission, and all written
change is set forth below. Additions are
communications relating to the
in italics and deletions are in brackets.
proposed rule change between the
Commission and any person, other than Listed Company Manual
*
*
*
*
*
those that may be withheld from the
public in accordance with the
802.00 Continued Listing Criteria
provisions of 5 U.S.C. 552, will be
*
*
*
*
*
available for inspection and copying in
the Commission’s Public Reference
802.01E SEC Annual Report Timely
Room, 100 F Street, NE., Washington,
Filing Criteria
DC 20549. Copies of such filing also will
A company that fails to file its annual
be available for inspection and copying
report (Forms 10–K, 10–KSB, 20–F, 40–
at the principal office of NASD. All
F or N–CSR) with the SEC in a timely
comments received will be posted
manner will be subject to the following
without change; the Commission does
procedures: Once the Exchange
not edit personal identifying
identifies that a company has failed to
information from submissions. You
file a timely periodic annual report with
should submit only information that
you wish to make available publicly. All the SEC by the later of (a) the date that
submissions should refer to the File
Number SR–NASD–2004–044 and
should be submitted on or before
December 7, 2005.
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\16NON1.SGM
16NON1
69618
Federal Register / Vol. 70, No. 220 / Wednesday, November 16, 2005 / Notices
the annual report was required to be
filed with the SEC by the applicable
form or (b) if a Form 12b–25 was timely
filed with the SEC, the extended filing
due date for the annual report, the
Exchange will notify the company in
writing of [its status] the procedures set
forth below. For purposes of this [Para.]
Section 802.01E, the later of these two
dates will be referred to as the ‘‘Filing
Due Date.’’
Within five days of receipt of this
notification, the company will be
required to (a) contact the Exchange to
discuss the status of the annual report
filing, and (b) [if it has not already done
so,] issue a press release disclosing the
status of the filing, noting the delay, the
reason for the delay and the anticipated
filing date, if known. If the company has
not [fails to] issued [this] the required
press release [in a timely manner] by the
fifth day following receipt of this
notification, the Exchange will itself
issue a press release stating that the
company has failed to timely file its
annual report with the SEC.
During the [nine] six-month period
from the Filing Due Date, the Exchange
will monitor the company and the status
of the filing, including through contact
with the company, until the annual
report is filed. If the company fails to
file the annual report within [nine] six
months from the Filing Due Date, the
Exchange may, in its sole discretion,
allow the company’s securities to be
traded for up to an additional [three]
six-month trading period depending on
the company’s specific circumstances. If
the Exchange determines that an
additional trading period of up to [three]
six months is not appropriate,
suspension and delisting procedures
will commence in accordance with the
procedures set out in [Para.] Section
804.00 of the Listed Company Manual.
A company is not eligible to follow the
procedures outlined in [Paras.] Sections
802.02 and 802.03 with respect to this
criteria.
In determining whether an additional
up to [three] six-month trading period is
appropriate, the Exchange will consider
the likelihood that the filing can be
made during the additional period, as
well as the company’s general financial
status, based on information provided
by a variety of sources, including the
company, its audit committee, its
outside auditors, the staff of the SEC
and any other regulatory body. The
Exchange strongly encourages
companies to provide ongoing
disclosure on the status of the annual
report filing to the market through press
releases, and will also take the
frequency and detail of such
information into account in determining
VerDate Aug<31>2005
13:56 Nov 15, 2005
Jkt 208001
whether an additional [three] six-month
trading period is appropriate.
If the Exchange determines that an
additional up to [three] six-month
trading period is appropriate and the
company fails to file its periodic annual
report by the end of the additional
period, suspension and delisting
procedures will, subject to the
provisions below, commence in
accordance with the procedures set out
in [Para.] Section 804.00. In certain
unique circumstances, a listed company
that is delayed in filing its annual report
beyond the twelve-month period
described above because its financial
statements have not yet been completed
may have a position in the market
(relating to both the nature of its
business and its very large publicly-held
market capitalization) such that its
delisting from the Exchange would be
significantly contrary to the national
interest and the interests of public
investors. In such case, when the
Exchange believes that the company
remains suitable for listing given:
1. Its continuing compliance with
applicable quantitative and qualitative
listing standards;
2. Its continued ability to meet current
debt obligations and adequately finance
operations;
3. Its progress, as reported to the
Exchange, in completing its financial
statements;
4. Whether it has been publicly
transparent on its status, issuing press
releases regarding its progress in
completing its financial statements and
providing other information regarding
its financial status; and
5. The reasonable expectation that the
company will be able to resume timely
filings in the future,
the Exchange, in its sole discretion, may
determine to allow the listed company
to continue listing beyond the twelvemonth period. The Exchange will advise
the SEC of, and publish on the NYSE’s
website, any such determination.
The Exchange will reevaluate such
determination once every three months.
If the Exchange reaffirms its decision to
allow trading to continue, the Exchange
will advise the SEC of, and publish on
the NYSE’s website, that reaffirmation.
Note that, regardless of the
procedures described above, if, at any
time, the Exchange deems it necessary
or appropriate in the public interest or
for the protection of investors, trading in
any security can be suspended
immediately, and[,] the Exchange will
follow [in accordance with] the
procedures set out in [Para.] Section
804.00[, application made to the SEC] to
delist the security.
*
*
*
*
*
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement 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. The text of
these statements may be examined at
the places specified in item IV below
and is set forth in sections A, B, and C
below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange recently approved
section 802.01E of the NYSE’s Listed
Company Manual which codifies the
Exchange’s procedures relating to
situations where companies fail to
satisfy the Commission’s filing
requirements for annual reports on
Forms 10–K, 10–KSB, 20–F, 40–F, or N–
CSR in a timely manner.
Section 802.01E currently provides
that if a company fails to timely file a
periodic annual report with the SEC, the
Exchange will monitor the company and
the status of the filing. If the company
fails to file the annual report within
nine months from the filing due date,
the Exchange may, in its sole discretion,
allow the company’s securities to be
traded for up to an additional threemonth trading period depending on the
company’s specific circumstances, but
in any event if the company does not
file its periodic annual report by the end
of the one year period, the Exchange
will begin suspension and delisting
procedures in accordance with the
procedures in section 804.00.
The Exchange believes that there are
certain unique listed companies that
have a position in the market (relating
to both the nature of their business and
their very large publicly-held market
capitalization) such that their delisting
from the Exchange would be
significantly contrary to the national
interest and the interests of public
investors, notwithstanding a delay in an
annual report filing that extended
beyond one year.
The Exchange is, therefore, proposing
to amend section 802.01E to provide
that, for these certain unique companies
that remain suitable for listing given
their relative financial health and
compliance with the NYSE’s
quantitative and qualitative listing
standards, and with respect to which
there is a reasonable expectation that
the company will be able to resume
timely filings in the future, the
E:\FR\FM\16NON1.SGM
16NON1
Federal Register / Vol. 70, No. 220 / Wednesday, November 16, 2005 / Notices
Exchange may forebear, at its sole
discretion, from commencing
suspension and delisting,
notwithstanding their failure to file
within the time periods specified in
section 802.01E. The Exchange will
advise the SEC of, and publish on the
NYSE’s Web site, any such
determination. In addition, the
Exchange will reevaluate such
determination once every three months
and, if the Exchange reaffirms its
decision to allow trading to continue,
the Exchange will advise the SEC of,
and publish on the NYSE’s website, that
reaffirmation.
In all such cases, Exchange staff will
continue to hold regular discussions
and meetings with the company’s
management, directors, regulators and
advisors to monitor the status of the
annual report filing, as well as the
company’s compliance with the NYSE’s
other qualitative and quantitative
requirements, and to determine whether
to allow the company to continue to
trade despite the continued failure to
file an annual report with the SEC. In
addition, in order to provide investors
with appropriate notice that companies
have failed to file their annual reports
with the SEC in a timely manner, the
Exchange will continue to monitor and
disseminate transparent information on
the failure of such companies to file
their annual report with the SEC,
including through appending an ‘‘.LF’’
indicator in the financial status field of
the company’s ticker symbol and
distributing that information via the low
speed ticker and through our data
stream to market data vendors.
The NYSE also maintains an up to
date list of companies that are late in
filing their annual reports with the SEC
on our Web site at https://www.nyse.com.
Additionally, each NYSE listed
company has a unique data page on the
site and, when applicable, this page
indicates that the company is
considered a late filer.
With respect to all companies subject
to section 802.01E, the Exchange is also
proposing to (i) shorten the initial
monitoring period for companies that
miss their Filing Due Date from nine to
six months and (ii) lengthen from three
to six months the additional period that
the Exchange may grant companies
prior to the commencement of
suspension and delisting procedures. In
addition, the Exchange is proposing
minor amendments to section 802.01E
to clarify the requirements regarding
VerDate Aug<31>2005
13:56 Nov 15, 2005
Jkt 208001
procedures for press releases relating to
late filings.4
2. Statutory Basis
The basis under the Exchange Act for
this proposed rule change is the
requirement under section 6(b)(5) 5 that
an exchange have rules that are
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest.
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 that is 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
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the NYSE consents, the
Commission will:
A. By order approve the proposed rule
change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 Exchange
Act.
Comments may be submitted by any
of the following methods:
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
4 The Commission notes that the Exchange is
clarifying the type of information that must be
included in the press release.
5 15 U.S.C. 78f(b)(5).
Frm 00112
Fmt 4703
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–75 on the
subject line.
Paper Comments
Send paper comments in triplicate to
Jonathan G. Katz, Secretary, Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 20549–
9303. All submissions should refer to
File Number SR–NYSE–2005–75. 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 (https://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. Copies of such filing also will be
available for inspection and copying at
the principal office of the NYSE. 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–NYSE–2005–75 and should
be submitted on or before December 7,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.6
Jonathan G. Katz,
Secretary.
[FR Doc. 05–22777 Filed 11–10–05; 4:38 pm]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10245 and # 10246]
Indiana Disaster # IN–00002
Electronic Comments
PO 00000
69619
Sfmt 4703
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a Notice of the
Presidential declaration of a major
6 17
CFR 200.30–3(a)(12).
E:\FR\FM\16NON1.SGM
16NON1
Agencies
[Federal Register Volume 70, Number 220 (Wednesday, November 16, 2005)]
[Notices]
[Pages 69617-69619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22777]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52760; File No. SR-NYSE-2005-75]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change Relating to Section 802.01E of
the Listed Company Manual
November 10, 2005.
Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'' or ``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\
notice is hereby given that on October 26, 2005, the New York Stock
Exchange, Inc. (``Exchange'' or ``NYSE'') filed with the Securities and
Exchange Commission (``Commission'' or ``SEC'') 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule filing reflects amendments to the Listed Company
Manual procedures applicable to companies that fail to file in a timely
manner their annual report required by the Act. The text of the
proposed rule change is set forth below. Additions are in italics and
deletions are in brackets.
Listed Company Manual
* * * * *
802.00 Continued Listing Criteria
* * * * *
802.01E SEC Annual Report Timely Filing Criteria
A company that fails to file its annual report (Forms 10-K, 10-KSB,
20-F, 40-F or N-CSR) with the SEC in a timely manner will be subject to
the following procedures: Once the Exchange identifies that a company
has failed to file a timely periodic annual report with the SEC by the
later of (a) the date that
[[Page 69618]]
the annual report was required to be filed with the SEC by the
applicable form or (b) if a Form 12b-25 was timely filed with the SEC,
the extended filing due date for the annual report, the Exchange will
notify the company in writing of [its status] the procedures set forth
below. For purposes of this [Para.] Section 802.01E, the later of these
two dates will be referred to as the ``Filing Due Date.''
Within five days of receipt of this notification, the company will
be required to (a) contact the Exchange to discuss the status of the
annual report filing, and (b) [if it has not already done so,] issue a
press release disclosing the status of the filing, noting the delay,
the reason for the delay and the anticipated filing date, if known. If
the company has not [fails to] issued [this] the required press release
[in a timely manner] by the fifth day following receipt of this
notification, the Exchange will itself issue a press release stating
that the company has failed to timely file its annual report with the
SEC.
During the [nine] six-month period from the Filing Due Date, the
Exchange will monitor the company and the status of the filing,
including through contact with the company, until the annual report is
filed. If the company fails to file the annual report within [nine] six
months from the Filing Due Date, the Exchange may, in its sole
discretion, allow the company's securities to be traded for up to an
additional [three] six-month trading period depending on the company's
specific circumstances. If the Exchange determines that an additional
trading period of up to [three] six months is not appropriate,
suspension and delisting procedures will commence in accordance with
the procedures set out in [Para.] Section 804.00 of the Listed Company
Manual. A company is not eligible to follow the procedures outlined in
[Paras.] Sections 802.02 and 802.03 with respect to this criteria.
In determining whether an additional up to [three] six-month
trading period is appropriate, the Exchange will consider the
likelihood that the filing can be made during the additional period, as
well as the company's general financial status, based on information
provided by a variety of sources, including the company, its audit
committee, its outside auditors, the staff of the SEC and any other
regulatory body. The Exchange strongly encourages companies to provide
ongoing disclosure on the status of the annual report filing to the
market through press releases, and will also take the frequency and
detail of such information into account in determining whether an
additional [three] six-month trading period is appropriate.
If the Exchange determines that an additional up to [three] six-
month trading period is appropriate and the company fails to file its
periodic annual report by the end of the additional period, suspension
and delisting procedures will, subject to the provisions below,
commence in accordance with the procedures set out in [Para.] Section
804.00. In certain unique circumstances, a listed company that is
delayed in filing its annual report beyond the twelve-month period
described above because its financial statements have not yet been
completed may have a position in the market (relating to both the
nature of its business and its very large publicly-held market
capitalization) such that its delisting from the Exchange would be
significantly contrary to the national interest and the interests of
public investors. In such case, when the Exchange believes that the
company remains suitable for listing given:
1. Its continuing compliance with applicable quantitative and
qualitative listing standards;
2. Its continued ability to meet current debt obligations and
adequately finance operations;
3. Its progress, as reported to the Exchange, in completing its
financial statements;
4. Whether it has been publicly transparent on its status, issuing
press releases regarding its progress in completing its financial
statements and providing other information regarding its financial
status; and
5. The reasonable expectation that the company will be able to
resume timely filings in the future,
the Exchange, in its sole discretion, may determine to allow the listed
company to continue listing beyond the twelve-month period. The
Exchange will advise the SEC of, and publish on the NYSE's website, any
such determination.
The Exchange will reevaluate such determination once every three
months. If the Exchange reaffirms its decision to allow trading to
continue, the Exchange will advise the SEC of, and publish on the
NYSE's website, that reaffirmation.
Note that, regardless of the procedures described above, if, at any
time, the Exchange deems it necessary or appropriate in the public
interest or for the protection of investors, trading in any security
can be suspended immediately, and[,] the Exchange will follow [in
accordance with] the procedures set out in [Para.] Section 804.00[,
application made to the SEC] to delist the security.
* * * * *
II. Self-Regulatory Organization's Statement 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. The
text of these statements may be examined at the places specified in
item IV below and is set forth in sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange recently approved section 802.01E of the NYSE's Listed
Company Manual which codifies the Exchange's procedures relating to
situations where companies fail to satisfy the Commission's filing
requirements for annual reports on Forms 10-K, 10-KSB, 20-F, 40-F, or
N-CSR in a timely manner.
Section 802.01E currently provides that if a company fails to
timely file a periodic annual report with the SEC, the Exchange will
monitor the company and the status of the filing. If the company fails
to file the annual report within nine months from the filing due date,
the Exchange may, in its sole discretion, allow the company's
securities to be traded for up to an additional three-month trading
period depending on the company's specific circumstances, but in any
event if the company does not file its periodic annual report by the
end of the one year period, the Exchange will begin suspension and
delisting procedures in accordance with the procedures in section
804.00.
The Exchange believes that there are certain unique listed
companies that have a position in the market (relating to both the
nature of their business and their very large publicly-held market
capitalization) such that their delisting from the Exchange would be
significantly contrary to the national interest and the interests of
public investors, notwithstanding a delay in an annual report filing
that extended beyond one year.
The Exchange is, therefore, proposing to amend section 802.01E to
provide that, for these certain unique companies that remain suitable
for listing given their relative financial health and compliance with
the NYSE's quantitative and qualitative listing standards, and with
respect to which there is a reasonable expectation that the company
will be able to resume timely filings in the future, the
[[Page 69619]]
Exchange may forebear, at its sole discretion, from commencing
suspension and delisting, notwithstanding their failure to file within
the time periods specified in section 802.01E. The Exchange will advise
the SEC of, and publish on the NYSE's Web site, any such determination.
In addition, the Exchange will reevaluate such determination once every
three months and, if the Exchange reaffirms its decision to allow
trading to continue, the Exchange will advise the SEC of, and publish
on the NYSE's website, that reaffirmation.
In all such cases, Exchange staff will continue to hold regular
discussions and meetings with the company's management, directors,
regulators and advisors to monitor the status of the annual report
filing, as well as the company's compliance with the NYSE's other
qualitative and quantitative requirements, and to determine whether to
allow the company to continue to trade despite the continued failure to
file an annual report with the SEC. In addition, in order to provide
investors with appropriate notice that companies have failed to file
their annual reports with the SEC in a timely manner, the Exchange will
continue to monitor and disseminate transparent information on the
failure of such companies to file their annual report with the SEC,
including through appending an ``.LF'' indicator in the financial
status field of the company's ticker symbol and distributing that
information via the low speed ticker and through our data stream to
market data vendors.
The NYSE also maintains an up to date list of companies that are
late in filing their annual reports with the SEC on our Web site at
https://www.nyse.com. Additionally, each NYSE listed company has a
unique data page on the site and, when applicable, this page indicates
that the company is considered a late filer.
With respect to all companies subject to section 802.01E, the
Exchange is also proposing to (i) shorten the initial monitoring period
for companies that miss their Filing Due Date from nine to six months
and (ii) lengthen from three to six months the additional period that
the Exchange may grant companies prior to the commencement of
suspension and delisting procedures. In addition, the Exchange is
proposing minor amendments to section 802.01E to clarify the
requirements regarding procedures for press releases relating to late
filings.\4\
---------------------------------------------------------------------------
\4\ The Commission notes that the Exchange is clarifying the
type of information that must be included in the press release.
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Exchange Act for this proposed rule change is
the requirement under section 6(b)(5) \5\ that an exchange have rules
that are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 that is 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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the NYSE consents, the Commission will:
A. By order approve the proposed rule change, or
B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 Exchange Act.
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2005-75 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz, Secretary,
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-9303. All submissions should refer to File Number SR-NYSE-2005-
75. 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 (https://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. Copies of such
filing also will be available for inspection and copying at the
principal office of the NYSE. 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-NYSE-2005-75 and should be submitted on or before
December 7, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. 05-22777 Filed 11-10-05; 4:38 pm]
BILLING CODE 8010-01-P