Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Proposing To Amend Section 107.03 of the Listed Company Manual To Provide That No Security Shall Be Approved for Listing on the Exchange That is Delinquent in Its Filing Obligation With the Securities and Exchange Commission, 55517-55519 [2014-22004]
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Federal Register / Vol. 79, No. 179 / Tuesday, September 16, 2014 / Notices
Dated: September 11, 2014.
Jill M. Peterson
Assistant Secretary.
RAILROAD RETIREMENT BOARD
Sunshine Act Meetings
Notice is hereby given that the
Railroad Retirement Board will hold a
meeting on September 23, 2014, 10:00
a.m. at the Board’s meeting room on the
8th floor of its headquarters building,
844 North Rush Street, Chicago, Illinois,
60611. The agenda for this meeting
follows:
Portion open to the public:
(1) Executive Committee Reports.
The person to contact for more
information is Martha P. Rico, Secretary
to the Board, Phone No. 312–751–4920.
Dated: September 12, 2014.
Martha P. Rico,
Secretary to the Board.
[FR Doc. 2014–22172 Filed 9–12–14; 4:15 pm]
BILLING CODE 7905–01–P
tkelley on DSK3SPTVN1PROD with NOTICES
Sunshine Act Meetings
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, September 18, 2014 at
2:00 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Aguilar, as duty
officer, voted to consider the items
listed for the Closed Meeting in closed
session.
The subject matter of the Closed
Meeting will be:
Settlement of injunctive actions;
Institution settlement of
administrative proceedings;
Resolution of litigation claim;
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
VerDate Sep<11>2014
18:22 Sep 15, 2014
Jkt 232001
of the most significant parts of such
statements.
[FR Doc. 2014–22121 Filed 9–12–14; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73071; File No. SR–NYSE–
2014–49]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Proposing To
Amend Section 107.03 of the Listed
Company Manual To Provide That No
Security Shall Be Approved for Listing
on the Exchange That is Delinquent in
Its Filing Obligation With the Securities
and Exchange Commission
September 10, 2014.
SECURITIES AND EXCHANGE
COMMISSION
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on August
28, 2014, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to [sic] The
text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
Frm 00092
Fmt 4703
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 107.03 of the Manual to provide
that no security shall be approved for
listing on the Exchange that is
delinquent in its filing obligation with
the Commission. The Exchange adopted
Section 107.03 of the Manual to codify
its longstanding practice of requiring
that issuers provide investors with
current and complete financial and
corporate information prior to the date
on which such issuer seeks to list a
security.4 Currently, Section 107.03
states that no security shall be approved
for listing on the Exchange if the issuer
has not for the 12 months immediately
preceding the date of listing filed on a
timely basis all periodic reports
required to be filed with the
Commission. While this requirement
furthers the Exchange’s goal of requiring
adequate current disclosure, the
Exchange believes that Section 107.03
could currently be read to impose
requirements upon issuers that the
Exchange did not intend and that go
beyond the Exchange’s practices it
intended to embody in the rule.
Accordingly, the Exchange proposes to
amend Section 107.03 to clarify how it
will evaluate an issuer’s compliance
with Commission reporting
requirements as it relates to approving
such issuer for listing on the Exchange.
In its current form, the language of
Section 107.03 precludes the listing of
any company that has failed to timely
file any of its periodic reports with the
SEC in the 12 months prior to the listing
approval date, even if that company was
current in its filings as of the date of its
listing application. This would preclude
the Exchange from listing a security if
its issuer had been late—even by a de
minimis amount—in filing just one of
its required periodic reports during the
preceding 12 months. The Exchange
believes this outcome would, in certain
instances, be disproportionately
punitive in comparison to the infraction
and would not provide any meaningful
investor protection benefits. In
particular, the Exchange generally does
not believe that there is any investor
protection benefit to be derived from
conditioning an issuer’s listing on the
timely filing of a Form 10–Q when the
4 See Securities Exchange Act Release No. 70218
(August 15, 2013), 78 FR 51788 (August 21, 2013)
(SR–NYSE–2013–33).
2 15
PO 00000
55517
Sfmt 4703
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55518
Federal Register / Vol. 79, No. 179 / Tuesday, September 16, 2014 / Notices
issuer has subsequently filed an annual
report for a fiscal year including the
period covered by that Form 10–Q. For
these reasons, the Exchange now
believes it is more appropriate to state
that a security will not be approved for
listing on the Exchange if its issuer is
delinquent in its filing obligation with
the Commission.
The Exchange proposes to take a two
pronged approach to determining
whether an issuer is delinquent in its
filing obligations. First, the Exchange
will in every case deem an issuer to be
delinquent and will not authorize such
issuer for listing if it has not filed an
annual report (on Forms 10–K, 20–F,
40–F or N–CSR) for its most recent fiscal
year end and all subsequent quarterly
reports (on Form 10–Q) by the date it
seeks to list on the Exchange. Second,
the Exchange will undertake a
qualitative review of an issuer’s past
(i.e. prior to its annual report for its
most recent fiscal year) compliance with
the Commission’s reporting
requirements. If, in the course of that
review, the Exchange learns that an
issuer has failed to file one or more
historical annual or quarterly reports
(each such report an ‘‘omitted filing’’),
it will create a rebuttable presumption
that the Exchange will deem the issuer
to be delinquent in its filing obligations
with the Commission and therefore will
not approve the issuer for listing.
Notwithstanding the foregoing, the
Exchange, in its sole discretion, may
decide that an omitted filing is not a bar
to listing if it is satisfied that (i) there
is evidence that the Commission does
not intend to take action against the
issuer as a result of the company’s
failure to submit such omitted filing or
(ii) a sufficient period of filing
compliance has passed since the due
date of the omitted filing that the
information required to be included in
such omitted filing would be of little
relevance to investors at the time of
listing.5
The Exchange believes that, as
amended, Section 107.03 will still
provide investors with a sufficient level
of protection. Under the proposed rule,
issuers will still be required to have
filed their most recent annual report and
all subsequent quarterly reports.
Further, historical non-compliance with
the Commission’s filing requirements
will serve as a bar to listing in the
absence of the mitigating factors
described above. Lastly, the Exchange’s
5 While the period of elapsed time that the
Exchange would consider to be sufficient will vary
from case to case, the Exchange expects it to be a
minimum of two years and potentially longer
depending on the facts and circumstances
surrounding a particular issuer.
VerDate Sep<11>2014
18:22 Sep 15, 2014
Jkt 232001
proposed amendment to Section 107.03
of the Manual is comparable to Nasdaq
Stock Market (‘‘Nasdaq’’) Rule 5210(e).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act, in general, and
furthers the objectives of Sections
6(b)(5) of the Act, in particular, in that
it is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, 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. The
Exchange believes that the proposed
amendment is consistent with the
investor protection objectives of Section
6(b)(5) because issuers under the
proposed amended rule will still be
required to provide investors with
current and complete financial and
corporate information prior to having
their securities authorized for listing on
the Exchange. Further, looking back
more than twelve months at an issuer’s
filing compliance will enhance investor
protection. Moreover, the proposed
amendment will foster cooperation and
coordination with persons engaged in
regulating transactions in securities by
harmonizing the Exchange’s listing
requirements in this regard with those
of Nasdaq.
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. The
proposed rule change is applicable to all
issuers applying to list their securities
on the Exchange and is comparable to
the Nasdaq requirement. Accordingly,
the Exchange does not believe that the
proposed change would impose any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, 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 and Rule 19b–4(f)(6)(iii)
thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) 9 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),10 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend 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 furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 11 of the Act to
determine whether the proposed rule
change should be approved or
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 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 email to rulecomments@sec.gov. Please include File
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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 Commission
deems this requirement to have been met.
9 17 CFR 240.19b–(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 15 U.S.C. 78s(b)(2)(B).
7 17
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Federal Register / Vol. 79, No. 179 / Tuesday, September 16, 2014 / Notices
55519
Number SR–NYSE–2014–49 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
the most significant parts of such
statements.
Paper Comments
[Release No. 34–73069; File No. SR–
NASDAQ–2014–088]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
• 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–2014–49. This file
number should be included on the
subject line if email 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 Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 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–
2014–49 and should be submitted on or
before October 7, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014–22004 Filed 9–15–14; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
NASDAQ Rule 4753 To Expand the
Information Made Available Through
the Order Imbalance Indicator in
Connection With the NASDAQ Halt
Cross
September 10, 2014.
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 August
28, 2014, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) a
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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ proposes a rule change to
amend NASDAQ Rule 4753 to expand
the information made available through
the Order Imbalance Indicator in
connection with the NASDAQ Halt
Cross (the ‘‘Halt Cross’’ or the ‘‘Cross’’).
NASDAQ proposes to make the change
operative on or about October 1, 2014,
on a date that is at least 30 days after
the date of the filing.
The text of the proposed rule change
is available at https://nasdaq.
cchwallstreet.com/, at NASDAQ’s
principal office, 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,
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 those
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
1 15
12 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:22 Sep 15, 2014
2
Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
17 CFR 240.19b–4.
Frm 00094
Fmt 4703
Sfmt 4703
1. Purpose
NASDAQ recently amended the
language of Rule 4753 to correct
imprecise language with respect to
imbalance information disseminated
through the Order Imbalance Indicator
(also known as the ‘‘Net Order
Imbalance Indicator’’ or ‘‘NOII’’) prior to
the execution of the Halt Cross.3 In this
new proposed rule change, NASDAQ is
proposing to expand the information
made available through the NOII to
enhance the ability of market
participants to understand the interplay
of supply and demand of buy and sell
orders leading up to the completion of
the Cross.
The NASDAQ Halt Cross is designed
to provide for an orderly, single-priced
opening of securities subject to an
intraday halt, including securities that
are the subject of an initial public
offering (‘‘IPO’’). Prior to the Cross
execution, market participants enter
quotes and orders eligible for
participation in the Cross, and NASDAQ
disseminates certain information—the
NOII—regarding buying and selling
interest entered and the indicative
execution price.
At the time when the security is
released for trading, the Halt Cross will
occur at the price that maximizes the
number of shares of trading interest
eligible for participation in the Cross 4 to
be executed. If there is more than one
such price, the Cross will occur at the
price that minimizes any Imbalance,
which is defined in the rule as ‘‘the
number of shares of Eligible Interest that
may not be matched with other order
shares at a particular price at any given
time.’’ 5 The NOII is disseminated every
five seconds during a designated period
prior to the completion of the Halt
Cross, in order to provide market
3 Securities Exchange Act Release No. 72736
(August 1, 2014), 79 FR 45860 (August 6, 2014)
(SR–NASDAQ–2014–075).
4 ‘‘Eligible Interest’’ is defined as any quotation or
any order that may be entered into the system and
designated with a time-in-force of SIOC, SDAY,
SGTC, MIOC, MDAY, MGTC, SHEX, or GTMC.
These respective times-in-force are defined in Rule
4751. NASDAQ is proposing to simplify this rule
language by replacing the list of times-in-force with
a more general reference to ‘‘a time-in-force that
would allow the order to be in force at the time of
the Halt Cross.’’ The change is not substantive in
effect.
5 Additional provisions of Rule 4753, not
pertinent to this proposed rule change, are used to
determine the price in the event that there is more
than one price that minimizes any Imbalance.
E:\FR\FM\16SEN1.SGM
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Agencies
[Federal Register Volume 79, Number 179 (Tuesday, September 16, 2014)]
[Notices]
[Pages 55517-55519]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-22004]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73071; File No. SR-NYSE-2014-49]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Proposing To Amend Section 107.03 of the Listed Company Manual To
Provide That No Security Shall Be Approved for Listing on the Exchange
That is Delinquent in Its Filing Obligation With the Securities and
Exchange Commission
September 10, 2014.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on August 28, 2014, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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 [sic] The text of the proposed rule change
is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, 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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts 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 107.03 of the Manual to
provide that no security shall be approved for listing on the Exchange
that is delinquent in its filing obligation with the Commission. The
Exchange adopted Section 107.03 of the Manual to codify its
longstanding practice of requiring that issuers provide investors with
current and complete financial and corporate information prior to the
date on which such issuer seeks to list a security.\4\ Currently,
Section 107.03 states that no security shall be approved for listing on
the Exchange if the issuer has not for the 12 months immediately
preceding the date of listing filed on a timely basis all periodic
reports required to be filed with the Commission. While this
requirement furthers the Exchange's goal of requiring adequate current
disclosure, the Exchange believes that Section 107.03 could currently
be read to impose requirements upon issuers that the Exchange did not
intend and that go beyond the Exchange's practices it intended to
embody in the rule. Accordingly, the Exchange proposes to amend Section
107.03 to clarify how it will evaluate an issuer's compliance with
Commission reporting requirements as it relates to approving such
issuer for listing on the Exchange.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 70218 (August 15,
2013), 78 FR 51788 (August 21, 2013) (SR-NYSE-2013-33).
---------------------------------------------------------------------------
In its current form, the language of Section 107.03 precludes the
listing of any company that has failed to timely file any of its
periodic reports with the SEC in the 12 months prior to the listing
approval date, even if that company was current in its filings as of
the date of its listing application. This would preclude the Exchange
from listing a security if its issuer had been late--even by a de
minimis amount--in filing just one of its required periodic reports
during the preceding 12 months. The Exchange believes this outcome
would, in certain instances, be disproportionately punitive in
comparison to the infraction and would not provide any meaningful
investor protection benefits. In particular, the Exchange generally
does not believe that there is any investor protection benefit to be
derived from conditioning an issuer's listing on the timely filing of a
Form 10-Q when the
[[Page 55518]]
issuer has subsequently filed an annual report for a fiscal year
including the period covered by that Form 10-Q. For these reasons, the
Exchange now believes it is more appropriate to state that a security
will not be approved for listing on the Exchange if its issuer is
delinquent in its filing obligation with the Commission.
The Exchange proposes to take a two pronged approach to determining
whether an issuer is delinquent in its filing obligations. First, the
Exchange will in every case deem an issuer to be delinquent and will
not authorize such issuer for listing if it has not filed an annual
report (on Forms 10-K, 20-F, 40-F or N-CSR) for its most recent fiscal
year end and all subsequent quarterly reports (on Form 10-Q) by the
date it seeks to list on the Exchange. Second, the Exchange will
undertake a qualitative review of an issuer's past (i.e. prior to its
annual report for its most recent fiscal year) compliance with the
Commission's reporting requirements. If, in the course of that review,
the Exchange learns that an issuer has failed to file one or more
historical annual or quarterly reports (each such report an ``omitted
filing''), it will create a rebuttable presumption that the Exchange
will deem the issuer to be delinquent in its filing obligations with
the Commission and therefore will not approve the issuer for listing.
Notwithstanding the foregoing, the Exchange, in its sole discretion,
may decide that an omitted filing is not a bar to listing if it is
satisfied that (i) there is evidence that the Commission does not
intend to take action against the issuer as a result of the company's
failure to submit such omitted filing or (ii) a sufficient period of
filing compliance has passed since the due date of the omitted filing
that the information required to be included in such omitted filing
would be of little relevance to investors at the time of listing.\5\
---------------------------------------------------------------------------
\5\ While the period of elapsed time that the Exchange would
consider to be sufficient will vary from case to case, the Exchange
expects it to be a minimum of two years and potentially longer
depending on the facts and circumstances surrounding a particular
issuer.
---------------------------------------------------------------------------
The Exchange believes that, as amended, Section 107.03 will still
provide investors with a sufficient level of protection. Under the
proposed rule, issuers will still be required to have filed their most
recent annual report and all subsequent quarterly reports. Further,
historical non-compliance with the Commission's filing requirements
will serve as a bar to listing in the absence of the mitigating factors
described above. Lastly, the Exchange's proposed amendment to Section
107.03 of the Manual is comparable to Nasdaq Stock Market (``Nasdaq'')
Rule 5210(e).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act, in general, and furthers the objectives
of Sections 6(b)(5) of the Act, in particular, in that it is designed
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.
The Exchange believes that the proposed amendment is consistent with
the investor protection objectives of Section 6(b)(5) because issuers
under the proposed amended rule will still be required to provide
investors with current and complete financial and corporate information
prior to having their securities authorized for listing on the
Exchange. Further, looking back more than twelve months at an issuer's
filing compliance will enhance investor protection. Moreover, the
proposed amendment will foster cooperation and coordination with
persons engaged in regulating transactions in securities by harmonizing
the Exchange's listing requirements in this regard with those of
Nasdaq.
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. The proposed rule change is
applicable to all issuers applying to list their securities on the
Exchange and is comparable to the Nasdaq requirement. Accordingly, the
Exchange does not believe that the proposed change would impose any
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, 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 and Rule 19b-
4(f)(6)(iii) thereunder.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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
Commission deems this requirement to have been met.
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A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\10\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\9\ 17 CFR 240.19b-(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend 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 furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \11\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\11\ 15 U.S.C. 78s(b)(2)(B).
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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 email to rule-comments@sec.gov. Please include
File
[[Page 55519]]
Number SR-NYSE-2014-49 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-2014-49. This file
number should be included on the subject line if email 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 Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 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-2014-49 and should be
submitted on or before October 7, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-22004 Filed 9-15-14; 8:45 am]
BILLING CODE 8011-01-P