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”, 58281-58283 [E8-23488]
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Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
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.
jlentini on PROD1PC65 with NOTICES
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
12 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(5).
13 15
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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
58281
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]
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:
BILLING CODE 8011–01–P
Electronic Comments
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’’
• 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–Phlx–2008–69 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58684; File No. SR–
NASDAQ–2008–075]
September 30, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on
to Secretary, Securities and Exchange
September 19, 2008, The NASDAQ
Commission, 100 F Street, NE.,
Stock Market LLC (‘‘Nasdaq’’) filed with
Washington, DC 20549–1090.
the Securities and Exchange
All submissions should refer to File
Commission (‘‘Commission’’) the
Number SR–Phlx–2008–69. This file
proposed rule change as described in
number should be included on the
Items I, II, and III below, which Items
subject line if e-mail is used. To help the have been substantially prepared by
Commission process and review your
Nasdaq. Nasdaq filed the proposed rule
comments more efficiently, please use
change pursuant to Section 19(b)(3)(A)
only one method. The Commission will of the Act 3 and Rule 19b–4(f)(5)
post all comments on the Commission’s thereunder,4 which renders it effective
Internet Web site (https://www.sec.gov/
upon filing with the Commission. The
rules/sro.shtml). Copies of the
Commission is publishing this notice to
submission, all subsequent
solicit comments on the proposed rule
amendments, all written statements
change from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
Nasdaq proposes to trade the common
proposed rule change between the
Commission and any person, other than stock of Tech/Ops Sevcon, Inc. on
Nasdaq using the two-character symbol
those that may be withheld from the
‘‘TO.’’
public in accordance with the
provisions of 5 U.S.C. 552, will be
II. Self-Regulatory Organization’s
available for inspection and copying in
Statement of the Purpose of, and
the Commission’s Public Reference
Statutory Basis for, the Proposed Rule
Room, 100 F Street, NE., Washington,
Change
DC 20549, on official business days
In its filing with the Commission,
between the hours of 10 a.m. and 3 p.m.
Nasdaq included statements concerning
Copies of such filing also will be
the purpose of, and basis for, the
available for inspection and copying at
proposed rule change and discussed any
the principal office of Phlx. All
comments it received on the proposed
comments received will be posted
rule change. The text of these statements
without change; the Commission does
may be examined at the places specified
not edit personal identifying
information from submissions. You
16 17 CFR 200.30–3(a)(12).
should submit only information that
1 15 U.S.C. 78s(b)(1).
you wish to make available publicly. All
2 17 CFR 240.19b–4.
submissions should refer to File
3 15 U.S.C. 78s(b)(3)(A).
Number SR–Phlx–2008–69 and should
4 17 CFR 240.19b–4(f)(5).
PO 00000
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58282
Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
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
jlentini on PROD1PC65 with NOTICES
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 3character 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,
5 This includes securities listed on Nasdaq’s
predecessor market, operated as a facility of the
NASD.
6 See Head Trader Alert 2005–133 (November 14,
2005), available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2005–133 and Vendor
Alert 2005–070 (November 14, 2005), available at:
https://www.nasdaqtrader.com/
TraderNews.aspx?id=nva2005–070. See also Head
Trader Alert 2006–144 (September 29, 2006),
available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2006–144, Head Trader
Alert 2006–193 (November 16, 2006), available at:
https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2006–193 and Vendor
Alert 2006–065 (October 4, 2006), available at:
https://www.nasdaqtrader.com/
TraderNews.aspx?id=nva2006–065.
7 Head Trader Alert 2007–050 (March 1, 2007),
available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2007–050.
8 See Securities Exchange Act Release No. 55519
(March 26, 2007) 72 FR 15737 (April 2, 2007) (SR–
NASDAQ–2007–025).
9 See 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.
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17:44 Oct 03, 2008
Jkt 217001
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
10 See 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).
11 A 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).
12 See, 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).
PO 00000
Frm 00173
Fmt 4703
Sfmt 4703
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
13 See 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).
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Federal Register / Vol. 73, No. 194 / Monday, October 6, 2008 / Notices
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
BILLING CODE 8011–01–P
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 (https://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.
jlentini on PROD1PC65 with NOTICES
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 (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, 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.
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17:44 Oct 03, 2008
Jkt 217001
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]
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
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See 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.
1 15
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58283
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
5 See 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.
6 Amex 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.
7 See 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.
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]]>Agencies
[Federal Register Volume 73, Number 194 (Monday, October 6, 2008)]
[Notices]
[Pages 58281-58283]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23488]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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
[[Page 58282]]
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 three-character
symbols.
---------------------------------------------------------------------------
\5\ This includes securities listed on Nasdaq's predecessor
market, operated as a facility of the NASD.
\6\ See Head Trader Alert 2005-133 (November 14, 2005),
available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2005-133 and Vendor Alert 2005-070 (November
14, 2005), available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=nva2005-070. See also Head Trader Alert 2006-144
(September 29, 2006), available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2006-144, Head Trader Alert 2006-193 (November
16, 2006), available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=hta2006-193 and Vendor Alert 2006-065 (October 4,
2006), available at: https://www.nasdaqtrader.com/
TraderNews.aspx?id=nva2006-065.
\7\ Head Trader Alert 2007-050 (March 1, 2007), available at:
https://www.nasdaqtrader.com/TraderNews.aspx?id=hta2007-050.
\8\ See Securities Exchange Act Release No. 55519 (March 26,
2007) 72 FR 15737 (April 2, 2007) (SR-NASDAQ-2007-025).
\9\ See 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.
\10\ See 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).
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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\
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\11\ A 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).
\12\ See, 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).
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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\
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\13\ See Securities Exchange Act Release No. 56037 (July 10,
2007) 72 FR 39096 (July 17, 2007).
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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.
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\14\ 15 U.S.C. 78(a).
\15\ 15 U.S.C. 78f(b)(5).
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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.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(5).
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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
[[Page 58283]]
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 (https://
www.sec.gov/rules/sro.shtml ); or
Send an e-mail to rule-comments@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 (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, 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\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23488 Filed 10-3-08; 8:45 am]
BILLING CODE 8011-01-P
