Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To Shorten the Time Period for Listed Companies To Issue a Press Release After Receipt of Notification That the Company Is Noncompliant With the Exchange's Price Test, 67241-67243 [E8-26894]
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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
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:
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–Phlx–2008–76 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.
mstockstill on PROD1PC66 with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26957 Filed 11–12–08; 8:45 am]
[Release No. 34–58900; File No. SR–NYSE–
2008–105]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC To Shorten the
Time Period for Listed Companies To
Issue a Press Release After Receipt of
Notification That the Company Is
Noncompliant With the Exchange’s
Price Test
November 5, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
All submissions should refer to File
‘‘Act’’),2 and Rule 19b–4 thereunder,3
Number SR–Phlx–2008–76. This file
notice is hereby given that on October
number should be included on the
subject line if e-mail is used. To help the 28, 2008, New York Stock Exchange,
LLC (the ‘‘NYSE’’ or the ‘‘Exchange’’)
Commission process and review your
filed with the Securities and Exchange
comments more efficiently, please use
only one method. The Commission will Commission (‘‘Commission’’ or ‘‘SEC’’)
post all comments on the Commission’s the proposed rule change as described
in Items I and II below, which items
Internet Web site (https://www.sec.gov/
have been prepared by the Exchange.
rules/sro.shtml). Copies of the
The Commission is publishing this
submission, all subsequent
notice to solicit comments on the
amendments, all written statements
proposed rule change from interested
with respect to the proposed rule
persons.
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
Commission and any person, other than
The Exchange proposes to amend
those that may be withheld from the
Section 802.01C of the Exchange’s
public in accordance with the
Listed Company Manual (the ‘‘Manual’’)
provisions of 5 U.S.C. 552, will be
to provide that the Exchange will
require a U.S. company, upon receiving
available for inspection and copying in
written notification that it has fallen
the Commission’s Public Reference
below the Exchange’s $1.00 stock price
Room, 100 F Street, NE., Washington,
requirement over a 30 trading-day
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. average, to issue a press release within
Copies of the filing will also be available the same amount of time as allotted by
the SEC for the company to disclose
for inspection and copying at the
such an occurrence, but in any event no
principal office of the self-regulatory
later than four business days after
organization. All comments received
receipt of notification from the
will be posted without change; the
Exchange, and will require a non-U.S.
Commission does not edit personal
company to issue a press release within
identifying information from
30 days of receiving written notification
submissions. You should submit only
from the Exchange that it has fallen
information that you wish to make
below the Exchange’s $1.00 stock price
available publicly. All submissions
requirement. The text of the proposed
should refer to File Number SR–Phlx–
2008–76 and should be submitted on or
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
before December 4, 2008.
2 15
3 17
VerDate Aug<31>2005
18:08 Nov 12, 2008
Jkt 217001
PO 00000
U.S.C. 78a.
CFR 240.19b–4.
Frm 00124
Fmt 4703
67241
rule change is available on the
Exchange’s Web site (https://
www.nyse.com), at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
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
self-regulatory organization 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 in Item IV below.
The NYSE 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
The Exchange proposes to amend
Section 802.01C of the Manual to
provide that the Exchange will require
a U.S. company, upon receiving written
notification that it has fallen below the
Exchange’s $1.00 stock price
requirement over a 30 trading-day
average, to issue a press release within
the same amount of time as allotted by
the SEC for the company to disclose
such an occurrence, but in any event no
later than four business days after
receipt of notice from the company. The
Exchange will require a non-U.S.
company to issue a press release within
30 days of receiving written notification
from the Exchange that it has fallen
below the Exchange’s $1.00 stock price
requirement. By doing so, the Exchange
is conforming its requirements under
Section 802.01C to the press release
requirements in relation to other
notifications of events of
noncompliance as set forth in Section
802.02 (for domestic companies) and
Section 802.03 (for foreign private
issuers).4
4 See Exchange Act Release No. 58487 (September
8, 2008), 73 FR 53303 (September 15, 2008) (SR–
NYSE–2008–59). Nothing in this proposal affects a
company’s obligations to disclose material news in
a timely fashion. See Section 202.05 of the Manual.
There are currently no companies that have
received notifications from the Exchange regarding
non-compliance with the Exchange’s stock price
continued listing requirements and that have not
already issued the required press release. As such,
the revised time periods this filing establishes for
companies that are non-compliant under Sections
802.01C (including foreign companies) will apply
only to those companies that receive a notice of
Continued
Sfmt 4703
E:\FR\FM\13NON1.SGM
13NON1
67242
Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
Currently, Section 802.01C of the
Manual requires a U.S. company to
issue a press release within 45 days of
receiving written notification from the
Exchange that it has fallen below the
Exchange’s stock price requirement.
Section 802.01C also provides that, if
the company fails to issue a press
release by the deadline specified by the
rule, the Exchange will itself issue the
requisite press release. However, SEC
rules require the company to file a Form
8–K giving notice of that event within
four business days of being notified by
the Exchange.5 The Exchange believes
that its own requirement is too long in
light of the much earlier public notice
required by the Form 8–K rule and that
it is appropriate for the Exchange to
issue a press release on the subject itself
if the company has not acted within the
period provided by Form 8–K and in
any event no later than four business
days after receipt of notification from
the Exchange. The Exchange notes that
companies that are incorporated in
jurisdictions outside the United States
but that do not qualify as foreign private
issuers are treated as domestic
companies for purposes of Section
802.01C.
Currently, Section 802.01C of the
Manual requires a non-U.S. company to
issue a press release within 90 days of
receiving written notification from the
Exchange that it has fallen below the
Exchange’s stock price requirement.
Section 802.01C also provides that, if
the company fails to issue a press
release by the deadline specified by the
rule, the Exchange will itself issue the
requisite press release. While foreign
private issuers are not subject to the
Form 8–K requirement imposed on
domestic issuers, the Exchange believes
that 90 days is an excessive period to
give companies to make such a material
disclosure. Based on our experience
with these companies, 30 days would be
more than sufficient. As such, the
Exchange proposes to shorten from 90 to
30 days the period within which foreign
private issuers must issue a press
release with regard to a notification by
the Exchange of noncompliance. If the
issuer does not issue a press release
within that 30 day period, the Exchange
will do so.
non-compliance subsequent to the submission of
this filing.
5 Item 3.01 of Form 8–K requires a registrant to
file a Form 8–K within four business days of receipt
of notice from the national securities exchange that
maintains the principal listing for any class of the
registrant’s common equity that the registrant or
such class of the registrant’s securities does not
satisfy a rule or standard for continued listing on
the exchange.
VerDate Aug<31>2005
17:13 Nov 12, 2008
Jkt 217001
While Section 802.01C establishes
maximum time periods for the issuance
of press releases, the Exchange believes
that companies should issue their press
releases concerning any notice of
noncompliance they receive from the
Exchange as soon as possible after
receipt of such notification and should
not wait until close to the end of the
permitted period before doing so.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Act’’) 6 for
this proposed rule change is the
requirement under Section 6(b)(5) 7 that
an Exchange have rules that are
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. In particular, the
Exchange believes that the proposed
amendment protects investors and the
public interest by ensuring the prompt
disclosure of material information with
respect to listed companies.
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 purpose of the Exchange 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
Because the proposed rule change: (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 become operative for 30
days after the date of the filing, or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest, the proposed rule change has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
6 15
U.S.C. 78a et seq.
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6). Pursuant to Rule 19b–
4(f)(6)(iii) under the Act, the Exchange is required
to give the Commission written notice of its intent
7 15
PO 00000
Frm 00125
Fmt 4703
Sfmt 4703
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
immediately conform the press release
timing requirements for companies that
are noncompliant with the Exchange’s
$1.00 stock price test in Section 802.01C
of the Manual with the press release
timing requirements in Sections 802.02
and 802.03 of the Manual that apply to
companies that are noncompliant with
the Exchange’s other continued listing
standards.12 Because the Commission
recently approved these similar timing
requirements in Sections 802.02 and
802.03 of the Manual,13 the Commission
believes that the proposed rule change
raises no new regulatory issues. The
Commission also notes that the prior
changes to these other sections of the
Manual were subject to full notice and
comment, and the Commission received
one comment in support of that
proposal. Further, the Commission
notes that the proposed rule change will
provide investors with earlier press
release notification that a company has
fallen out of compliance with the
Exchange’s stock price requirement and
also avoids any confusion for domestic
companies by conforming the time
periods in the NYSE rules with current
Commission requirements for the filing
of the Form 8–K. For these reasons, the
Commission designates that the
proposed rule change become operative
immediately upon filing.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
the rule change if it appears to the
Commission that such action is
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 See continued listing standards in Section
802.01 of the Manual.
13 See supra note 4.
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
E:\FR\FM\13NON1.SGM
13NON1
Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–26894 Filed 11–12–08; 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; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Exchange Rule
6.39—Securities Accounts of Market
Makers
mstockstill on PROD1PC66 with NOTICES
• 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–NYSE–2008–105 on the
subject line.
17:13 Nov 12, 2008
Jkt 217001
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58899; File No. SR–
NYSEArca–2008–116]
November 5, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Paper Comments
notice is hereby given that, on
• Send paper comments in triplicate
November 3, 2008, NYSE Arca, Inc.
to Secretary, Securities and Exchange
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed
Commission, 100 F Street, NE.,
with the Securities and Exchange
Washington, DC 20549–1090.
Commission (the ‘‘Commission’’) the
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–NYSE–2008–105. This file
have been prepared by the selfnumber should be included on the
subject line if e-mail is used. To help the regulatory organization. The
Commission is publishing this notice to
Commission process and review your
solicit comments on the proposed rule
comments more efficiently, please use
change from interested persons.
only one method. The Commission will
post all comments on the Commission’s I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
submission, all subsequent
The Exchange proposes to amend
amendments, all written statements
Exchange Rule 6.39—Securities
with respect to the proposed rule
Accounts of Market Makers. The text of
change that are filed with the
the proposed rule change is attached as
Commission, and all written
Exhibit 5, is available on the Exchange’s
communications relating to the
Web site at www.nyse.com, at the
proposed rule change between the
Exchange’s principal office and at the
Commission and any person, other than Commission’s Public Reference Room.
those that may be withheld from the
II. Self-Regulatory Organization’s
public in accordance with the
Statement of the Purpose of, and
provisions of 5 U.S.C. 552, will be
Statutory Basis for, the Proposed Rule
available for inspection and copying in
Change
the Commission’s Public Reference
In its filing with the Commission, the
Room, on official business days between
self-regulatory organization included
the hours of 10 a.m. and 3 p.m. Copies
statements concerning the purpose of,
of the filing also will be available for
and basis for, the proposed rule change
inspection and copying at the principal
and discussed any comments it received
office of the Exchange. All comments
received will be posted without change; on the proposed rule change. The text
of those statements may be examined at
the Commission does not edit personal
the places specified in Item IV below.
identifying information from
The Exchange has prepared summaries,
submissions. You should submit only
set forth in sections A, B, and C below,
information that you wish to make
available publicly. All submissions
15 17 CFR 200.30–3(a)(12).
should refer to File Number SR–NYSE–
1 15 U.S.C. 78s(b)(1).
2008–105 and should be submitted on
2 15 U.S.C. 78a.
or before December 4, 2008.
3 17 CFR 240.19b–4.
VerDate Aug<31>2005
67243
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
The purpose of this filing is to amend
Rule 6.39 by modifying the terms under
which a clearing firm reports trade
information to the Exchange on behalf
of a Market Maker.
Presently, with respect to transactions
to be cleared into all accounts carried
for Market Makers, each clearing firm
shall, on the business day following
order entry date report to the Exchange
every executed order entered by the
Market Maker for the purchase or sale
of a security underlying options traded
on the Exchange, as well as opening and
closing positions in all such securities
held in each account.
The Exchange does, on occasion, find
the need to review Market Maker order
records in conjunction with an
investigation, inquiries regarding a
specific trade, or a routine examination.
However, since this is not information
that the Exchange typically uses on a
daily basis, there is no need for the
Exchange to collect such information,
on a daily basis. Requiring this
information to be reported on a daily
basis, instead of ‘‘upon request’’ creates
an unnecessary burden on Market
Makers, clearing firms and the Exchange
alike.
The Exchange hereby proposes to
amend Rule 6.39 by removing the
obligation for a clearing firm to report
such trades on a daily basis, and instead
require the firms to report such trades
only upon request of the Exchange.
Supplying the Exchange with trade
information, when requested instead of
on a daily basis, is consistent with the
requirements at both the International
Securities Exchange (‘‘ISE’’) 4 and the
Boston Options Exchange (‘‘BOX’’).5
2. Statutory Basis
This rule change is designed merely
to create a more efficient mechanism for
clearing firms to report market maker
trade information to the Exchange.
NYSE Arca believes that the proposed
rule change is consistent with Section
6(b) of the Act 6 in general, and furthers
the objectives of Section 6(b)(5) of the
Act 7 in particular, because it is
4 See
ISE Rule 807(b)—Reports of Orders.
BOX Trading Rules Chapter VI Sec. 7(b)—
Reports of Orders.
6 15 U.S.C. 78f (b).
7 15 U.S.C. 78f (b)(5).
5 See
E:\FR\FM\13NON1.SGM
13NON1
Agencies
[Federal Register Volume 73, Number 220 (Thursday, November 13, 2008)]
[Notices]
[Pages 67241-67243]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26894]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58900; File No. SR-NYSE-2008-105]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC To
Shorten the Time Period for Listed Companies To Issue a Press Release
After Receipt of Notification That the Company Is Noncompliant With the
Exchange's Price Test
November 5, 2008.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on October 28, 2008, New York Stock Exchange, LLC (the
``NYSE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'' or ``SEC'') the proposed rule change as
described in Items I and II 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 Exchange proposes to amend Section 802.01C of the Exchange's
Listed Company Manual (the ``Manual'') to provide that the Exchange
will require a U.S. company, upon receiving written notification that
it has fallen below the Exchange's $1.00 stock price requirement over a
30 trading-day average, to issue a press release within the same amount
of time as allotted by the SEC for the company to disclose such an
occurrence, but in any event no later than four business days after
receipt of notification from the Exchange, and will require a non-U.S.
company to issue a press release within 30 days of receiving written
notification from the Exchange that it has fallen below the Exchange's
$1.00 stock price requirement. The text of the proposed rule change is
available on the Exchange's Web site (https://www.nyse.com), at the
Exchange's Office of the Secretary, and at the Commission's Public
Reference Room.
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 self-regulatory organization
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 in Item IV below. The NYSE 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
The Exchange proposes to amend Section 802.01C of the Manual to
provide that the Exchange will require a U.S. company, upon receiving
written notification that it has fallen below the Exchange's $1.00
stock price requirement over a 30 trading-day average, to issue a press
release within the same amount of time as allotted by the SEC for the
company to disclose such an occurrence, but in any event no later than
four business days after receipt of notice from the company. The
Exchange will require a non-U.S. company to issue a press release
within 30 days of receiving written notification from the Exchange that
it has fallen below the Exchange's $1.00 stock price requirement. By
doing so, the Exchange is conforming its requirements under Section
802.01C to the press release requirements in relation to other
notifications of events of noncompliance as set forth in Section 802.02
(for domestic companies) and Section 802.03 (for foreign private
issuers).\4\
---------------------------------------------------------------------------
\4\ See Exchange Act Release No. 58487 (September 8, 2008), 73
FR 53303 (September 15, 2008) (SR-NYSE-2008-59). Nothing in this
proposal affects a company's obligations to disclose material news
in a timely fashion. See Section 202.05 of the Manual. There are
currently no companies that have received notifications from the
Exchange regarding non-compliance with the Exchange's stock price
continued listing requirements and that have not already issued the
required press release. As such, the revised time periods this
filing establishes for companies that are non-compliant under
Sections 802.01C (including foreign companies) will apply only to
those companies that receive a notice of non-compliance subsequent
to the submission of this filing.
---------------------------------------------------------------------------
[[Page 67242]]
Currently, Section 802.01C of the Manual requires a U.S. company to
issue a press release within 45 days of receiving written notification
from the Exchange that it has fallen below the Exchange's stock price
requirement. Section 802.01C also provides that, if the company fails
to issue a press release by the deadline specified by the rule, the
Exchange will itself issue the requisite press release. However, SEC
rules require the company to file a Form 8-K giving notice of that
event within four business days of being notified by the Exchange.\5\
The Exchange believes that its own requirement is too long in light of
the much earlier public notice required by the Form 8-K rule and that
it is appropriate for the Exchange to issue a press release on the
subject itself if the company has not acted within the period provided
by Form 8-K and in any event no later than four business days after
receipt of notification from the Exchange. The Exchange notes that
companies that are incorporated in jurisdictions outside the United
States but that do not qualify as foreign private issuers are treated
as domestic companies for purposes of Section 802.01C.
---------------------------------------------------------------------------
\5\ Item 3.01 of Form 8-K requires a registrant to file a Form
8-K within four business days of receipt of notice from the national
securities exchange that maintains the principal listing for any
class of the registrant's common equity that the registrant or such
class of the registrant's securities does not satisfy a rule or
standard for continued listing on the exchange.
---------------------------------------------------------------------------
Currently, Section 802.01C of the Manual requires a non-U.S.
company to issue a press release within 90 days of receiving written
notification from the Exchange that it has fallen below the Exchange's
stock price requirement. Section 802.01C also provides that, if the
company fails to issue a press release by the deadline specified by the
rule, the Exchange will itself issue the requisite press release. While
foreign private issuers are not subject to the Form 8-K requirement
imposed on domestic issuers, the Exchange believes that 90 days is an
excessive period to give companies to make such a material disclosure.
Based on our experience with these companies, 30 days would be more
than sufficient. As such, the Exchange proposes to shorten from 90 to
30 days the period within which foreign private issuers must issue a
press release with regard to a notification by the Exchange of
noncompliance. If the issuer does not issue a press release within that
30 day period, the Exchange will do so.
While Section 802.01C establishes maximum time periods for the
issuance of press releases, the Exchange believes that companies should
issue their press releases concerning any notice of noncompliance they
receive from the Exchange as soon as possible after receipt of such
notification and should not wait until close to the end of the
permitted period before doing so.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Act'')
\6\ for this proposed rule change is the requirement under Section
6(b)(5) \7\ that an Exchange have rules that are 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.
In particular, the Exchange believes that the proposed amendment
protects investors and the public interest by ensuring the prompt
disclosure of material information with respect to listed companies.
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\6\ 15 U.S.C. 78a et seq.
\7\ 15 U.S.C. 78f(b)(5).
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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 purpose of the Exchange 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
Because the proposed rule change: (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 become
operative for 30 days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest, the proposed rule change has
become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and
Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii)
under the Act, the Exchange is required to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to immediately conform the press
release timing requirements for companies that are noncompliant with
the Exchange's $1.00 stock price test in Section 802.01C of the Manual
with the press release timing requirements in Sections 802.02 and
802.03 of the Manual that apply to companies that are noncompliant with
the Exchange's other continued listing standards.\12\ Because the
Commission recently approved these similar timing requirements in
Sections 802.02 and 802.03 of the Manual,\13\ the Commission believes
that the proposed rule change raises no new regulatory issues. The
Commission also notes that the prior changes to these other sections of
the Manual were subject to full notice and comment, and the Commission
received one comment in support of that proposal. Further, the
Commission notes that the proposed rule change will provide investors
with earlier press release notification that a company has fallen out
of compliance with the Exchange's stock price requirement and also
avoids any confusion for domestic companies by conforming the time
periods in the NYSE rules with current Commission requirements for the
filing of the Form 8-K. For these reasons, the Commission designates
that the proposed rule change become operative immediately upon
filing.\14\
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\12\ See continued listing standards in Section 802.01 of the
Manual.
\13\ See supra note 4.
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that such action is
[[Page 67243]]
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-NYSE-2008-105 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-NYSE-2008-105. 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, on official business
days between the hours of 10 a.m. and 3 p.m. Copies of the 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-
NYSE-2008-105 and should be submitted on or before December 4, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26894 Filed 11-12-08; 8:45 am]
BILLING CODE 8011-01-P