DOCSLIB.ORG

Datto Holding Corp. Is Offering 22,000,000 Shares of Its Common Stock

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Datto Holding Corp. Is Offering 22,000,000 Shares of Its Common Stock 22,000,000 Shares COMMON STOCK Datto Holding Corp. is offering 22,000,000 shares of its common stock. This is our initial public offering, and no public market currently exists for our shares. The initial public offering price is $27.00 per share. We have been approved to list our common stock on the New York Stock Exchange under the symbol “MSP.” We are an “emerging growth company” as defined under the federal securities laws. Investing in our common stock involves risks. See “Risk Factors” beginning on page 18. Immediately after this offering funds controlled by our equity sponsor, Vista Equity Partners, will own approximately 72.2% of our outstanding common stock (or 70.7% of our outstanding common stock if the underwriters’ option to purchase additional shares is exercised in full). As a result, we expect to be a “controlled company” within the meaning of the corporate governance standards of the New York Stock Exchange. See “Management—Corporate Governance—Controlled Company Status.” PRICE $27.00 A SHARE Underwriting Discounts Price to and Proceeds to Public Commissions(1) Datto Per Share ............................ $27.00 $1.63863 $25.36137 Total ................................ $594,000,000 $36,049,860 $557,950,140 (1) See “Underwriting” for a description of the compensation payable to the underwriters. At our request, the underwriters have reserved up to 7% of the shares of common stock offered by this prospectus for sale, at the initial public offering price, to certain persons associated with us. See the section titled “Underwriting—Directed Share Program.” We have granted the underwriters the right to purchase up to an additional 3,300,000 shares of common stock solely to cover over-allotments, if any. One or more entities affiliated with Investment Group of Santa Barbara, LLC, or IGSB, and one or more entities affiliated with Dragoneer Investment Group, LLC, or Dragoneer, have together indicated an interest in purchasing up to a combined 20% of the shares of common stock offered in this offering at the initial public offering price. This indication of interest is not a binding agreement or commitment to purchase. As a result, IGSB or Dragoneer could determine to purchase more, less or no shares in this offering, or the underwriters could determine to sell more, fewer or no shares to IGSB or to Dragoneer. The underwriters will receive the same discount on any of the shares sold to IGSB or to Dragoneer as they will from any other shares sold to the public in the offering. The Securities and Exchange Commission and state regulators have not approved or disapproved of these securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. The underwriters expect to deliver the shares of common stock to purchasers on October 23, 2020. MORGAN STANLEY BOFA SECURITIES BARCLAYS CREDIT SUISSE Citigroup Jefferies RBC Capital Markets Evercore ISI BMO Capital Markets Macquarie Capital Mizuho Securities William Blair Ramirez & Co., Inc. Siebert Williams Shank October 20, 2020 Our Mission We create enterprise-grade technology for small and medium businesses delivered through our growing, global network of managed service provider (MSP) partners Our Philosophy We are committed to the success of MSPs – it is the foundation of our strategy and culture $507M 1 115% 1 ARR Dollar-based Net Retention 17,000+1 1,000+1 MSP Partners MSP Partners Contributing $100K+ ARR 19% 2 22%3,4 YoY Subscription LTM Adjusted Revenue Growth EBITDA Margin $5M 3 ($31M) LTM Net Income 2019 Net Loss 1. Point in time figures as of June 30, 2020 2. Year-over-Year (YoY) figures compare Six Months Ended June 30, 2020 to Six Months Ended June 30, 2019 3. For the twelve months ended June 30, 2020 4. See Non-GAAP reconciliation for reconciliation of Adjusted EBITDA to Net Income Datto’s Integrated, Cloud-Managed Platform is Purpose-Built to Empower MSPs in Serving SMBs Protect Any Workload Securely Connect in Any Location with Customers to Workloads Anywhere Failover tem for Managed osys Ser Ec vic en es Op ity inu t N on e C tw d curity Solutio o e Se ns r fi k i i n n U g Additional Platform Offerings B t us en in m ess age Man Mitigate Cybersecurity Risk Digitize MSPs to Improve Their Customers’ Experience TABLE OF CONTENTS Page Page Letter from Tim Weller, Chief Executive Management ........................... 129 Officer .............................. ii Executive Compensation ................. 136 Prospectus Summary .................... 1 Principal Shareholders ................... 143 Risk Factors ........................... 18 Certain Relationships and Related Party Forward-Looking Statements .............. 64 Transactions ......................... 145 Market and Industry Data ................. 67 Description of Certain Indebtedness ......... 148 Use of Proceeds ........................ 68 Description of Capital Stock ............... 153 Dividend Policy ........................ 69 Shares Eligible for Future Sale ............. 160 Capitalization .......................... 70 Material U.S. Federal Income Tax Dilution ............................... 72 Consequences to Non-U.S. Holders ....... 162 Selected Consolidated Financial Data ....... 74 Underwriting ........................... 167 Management’s Discussion and Analysis of Legal Matters .......................... 175 Financial Condition and Results of Experts ............................... 175 Operations ........................... 77 Where You Can Find More Information ..... 175 Business .............................. 110 Index to Consolidated Financial Statements . F-1 Through and including November 14, 2020 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer’s obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription. You should rely only on the information contained in this prospectus or contained in any free writing prospectus filed with the Securities and Exchange Commission, or SEC. Neither we nor any of the underwriters have authorized anyone to provide any information or make any representations other than those contained in this prospectus or in any free writing prospectus filed with the SEC. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We are offering to sell, and seeking offers to buy, shares of common stock only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the common stock. Our business, financial condition, results of operations and prospects may have changed since such date. For investors outside of the United States, neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about, and to observe any restrictions relating to, this offering and the distribution of this prospectus outside of the United States. Letter from Tim Weller, Chief Executive Officer Datto’s journey since inception has been the story of the community we serve as partners—Managed Service Providers (MSPs)—as much as the story of our company. When I joined Datto just over three years ago, it was immediately apparent that while Datto’s core was technology innovation, the most unique aspect of the story was the complete alignment with MSP channel partners in their quest to digitally transform Small and Medium Businesses (SMBs) around the world. Datto’s passion is to serve MSPs in that quest by creating enterprise-grade technology purpose-built for MSPs. Our 17,000 partners around the world will not be surprised that we chose “MSP” as our ticker symbol. Datto is the MSP Technology Company. How is that evidenced in our actions? • We foster an MSP-centric culture—actual MSP partners speak at each new employee orientation to nurture that environment from day one • We enable MSPs to build and grow recurring revenue businesses for sustainable value • We design simplicity in our solutions to save time for MSPs and their customers • We deliver leading-edge digital content and an online marketing platform for MSPs to use with their SMB prospects and customers • We help build the MSP community through our world-class live and virtual events • We integrate across our own products and throughout an open ecosystem of other vendors providing solutions for MSPs • We eliminate channel conflict by assuring MSPs that we will never compete with them for SMBs— we’re all-in on the channel • We don’t have customers—we have partners! The MSP (and Datto) story starts with SMBs. Digital transformation has become a strategic imperative for SMBs. Current global events have only intensified urgency, complexity and competition for technology expertise. SMBs are turning in increasing numbers to MSPs to access and manage key technologies that were once only available to larger enterprises. As an industry, MSPs now manage well over 10% of the global SMB IT spend, which is $159 billion and growing. Datto’s integrated, cloud-managed platform is purpose-built to empower MSPs in serving
Load more

Recommended publications
  • Evolution of Accounting for Corporate Treasury Stock in the United States Norlin Gerhard Rueschhoff
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by eGrove (Univ. of Mississippi) Accounting Historians Journal Volume 5 Article 1 Issue 1 Spring 1978 1978 Evolution of accounting for corporate treasury stock in the United States Norlin Gerhard Rueschhoff Follow this and additional works at: https://egrove.olemiss.edu/aah_journal Part of the Accounting Commons, and the Taxation Commons Recommended Citation Rueschhoff, Norlin Gerhard (1978) "Evolution of accounting for corporate treasury stock in the United States," Accounting Historians Journal: Vol. 5 : Iss. 1 , Article 1. Available at: https://egrove.olemiss.edu/aah_journal/vol5/iss1/1 This Article is brought to you for free and open access by the Archival Digital Accounting Collection at eGrove. It has been accepted for inclusion in Accounting Historians Journal by an authorized editor of eGrove. For more information, please contact [email protected]. Rueschhoff: Evolution of accounting for corporate treasury stock in the United States Norlin G. Rueschhoff ASSOCIATE PROFESSOR UNIVERSITY OF NOTRE DAME THE EVOLUTION OF ACCOUNTING FOR CORPORATE TREASURY STOCK IN THE UNITED STATES Abstract: Is treasury stock an asset or a reduction of net equity? This study is concerned with the process of accounting for treasury stock from as early as 1720 to date. It illustrates the many methods which have been used to create funds by the purchase and sale of treasury stocks and concludes with a consideration of the effects of the Internal Revenue Act of 1934 and the Security Exchange Act of 1934 on the treatment of treasury stock. In 1919, William A.
    [Show full text]
  • Comptroller of the Currency, Treasury § 7.2024
    Comptroller of the Currency, Treasury § 7.2024 § 7.2018 Lost stock certificates. (5) Reduce costs associated with If a national bank does not provide shareholder communications and meet- for replacing lost, stolen, or destroyed ings. stock certificates in its articles of as- (c) Prohibition. It is not a legitimate sociation or bylaws, the bank may corporate purpose to acquire or hold adopt procedures in accordance with treasury stock on speculation about § 7.2000. changes in its value. § 7.2019 Loans secured by a bank’s [64 FR 60099, Nov. 4, 1999] own shares. § 7.2021 Preemptive rights. (a) Permitted agreements, relating to bank shares. A national bank may re- A national bank in its articles of as- quire a borrower holding shares of the sociation must grant or deny preemp- bank to execute agreements: tive rights to the bank’s shareholders. (1) Not to pledge, give away, transfer, Any amendment to a national bank’s or otherwise assign such shares; articles of association which modifies (2) To pledge such shares at the re- such preemptive rights must be ap- quest of the bank when necessary to proved by a vote of the holders of two- prevent loss; and thirds of the bank’s outstanding voting (3) To leave such shares in the bank’s shares. custody. (b) Use of capital notes and debentures. § 7.2022 Voting trusts. A national bank may not make loans The shareholders of a national bank secured by a pledge of the bank’s own may establish a voting trust under the capital notes and debentures.
    [Show full text]
  • Securities Laws and the Social Costs of Inaccurate Stock Prices
    Duke Law Journal VOLUME 41 APRIL 1992 NUMBER 5 SECURITIES LAWS AND THE SOCIAL COSTS OF "INACCURATE" STOCK PRICES MARCEL KAHAN* INTRODUCTION ................................................ 979 I. LEGAL REGULATIONS AND STOCK PRICE ACCURACY .... 982 II. A TAXONOMY OF INACCURACIES ........................ 987 A. The Dimension of Cause ............................ 988 1. Inaccuracies Caused by Non-Public Information .. 988 2. Inaccuracies Caused by Misassessment ............ 989 3. Inaccuracies Caused by Speculative Trading ...... 990 4. Inaccuracies Caused by Liquidity Crunches ....... 992 B. The Dimension of Manifestation ..................... 994 1. Short-Termism .................................. 994 2. Excess Market Volatility ......................... 995 3. Random Short-Run Inaccuracies ................. 996 4. Industry-Wide Inaccuracies ...................... 997 5. Systematic Discounts ............................ 997 6. Other Manifestations ............................ 998 C. The Dimension of Scope ............................. 999 1. The Timing of Mispricing........................ 999 2. The Degree of Mispricing ........................ 1000 3. The Number and Importance of Firms Affected... 1000 D. Dimensions of Mispricing and the Insider Trading R ule ............................................... 1001 1. Insider Trading and the Causes of Inaccuracies ... 1001 * Assistant Professor of Law, New York University School of Law. I would like to thank Lucian Bebchuk, Vicki Been, Chris Eisgruber, Andrea Fastenberg, Ron Gilson, Jeff
    [Show full text]
  • Largest Gift in RIT History to Expand Entrepreneurship and Cybersecurity
    The University Magazine Spring 2018 PROMISE DELIVERED Largest gift in RIT history to expand entrepreneurship and cybersecurity NTID celebrates 50 years • Study-abroad program adapts to better serve students FROM THE PRESIDENT Learning from Millennials— creative careers with noble purpose s a baby boomer of 32, Austin is among the nation’s top 50 on a quest to philanthropists for 2017. continually Alearn and find ways • Anna Sweet ’04 (computer science): Anna to make a difference, is a tech entrepreneur and executive with I am putting my faith Caffeine, a new live streaming platform RIT: The University Magazine in the future generation for the gaming industry. She also founded Executive Editors of leaders. Octave Nine, a tech consulting firm focused Bob Finnerty ’07, Marketing and Communications I am riveted by the Millennial genera- on augmented reality, virtual reality and Deborah M. Stendardi, Government and Community Relations tion—born between 1980 and 2000—who mixed reality. In addition to her career in John Trierweiler, Marketing and Communications are not only doing well in their careers, but the gaming industry in the San Francisco Editor who are also doing good deeds outside the Bay area, Anna is co-founder of Sweet Mindy Mozer, Marketing and Communications workplace. They will tell you that creativity Farm Foundation, a nonprofit organization Contributing Editors and innovation are best used for noble dedicated to promoting the humane treat- Lisa Cauda, Development and Alumni Relations purposes. They will tell you that goodness ment of animals in the food system. Kim Slusser, Development and Alumni Relations Cindy Sobieraj, Development and Alumni Relations is essential to improve the world.
    [Show full text]
  • DATTO HOLDING CORP. (Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant ☒ Filed by a Party other than the Registrant ☐ Check the appropriate box: ☐ Preliminary Proxy Statement ☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) ☒ Definitive Proxy Statement ☐ Definitive Additional Materials ☐ Soliciting Material Pursuant to §240.14a-12 DATTO HOLDING CORP. (Name of registrant as specified in its charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): ☒ No fee required. ☐ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it is determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: ☐ Fee paid previously with preliminary materials. ☐ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed: Table of Contents Dear Fellow Shareholders, We are pleased to invite you to attend our first Annual Meeting of Shareholders of Datto Holding Corp.
    [Show full text]
  • Corporate Securities Qualification Examination (Test Series 62)
    Corporate Securities Qualification Examination (Test Series 62) Study Outline © 2015 FINRA Introduction The FINRA Corporate Securities Limited Representative Qualification Examination (Series 62) is used to qualify individuals seeking registration with FINRA under By-Laws Article III, Section 2, and the Membership and Registration Rules. Registered representatives in this category of registration may trade common and preferred stocks, corporate bonds, rights, warrants, closed-end investment companies, money-market funds, privately issued mortgage-backed securities, other asset-backed securities, and REITS. This category, by itself, does not allow a registered representative to trade municipal securities, direct participation programs, other securities registered under the Investment Company Act of 1940, variable contracts, nor options. Candidates seeking to trade these latter products must also register in one or more of FINRA’s other limited representative categories, or as General Securities Registered Representatives. This study outline can assist FINRA member firms in preparing candidates to sit for the Series 62 exam. Members may use it to structure or prepare training material and to develop lecture notes and seminar programs. This outline can also be used by the individual candidate as a training aid. The outline and the test are divided into the four sections listed below along with the number of items in each section. Section Description Number of Items 1 Types and Characteristics of Securities and Investments 25 2 The Market for Corporate Securities 40 3 Evaluation of Securities and Investments 14 4 Handling Customer Accounts and Securities Industry 36 Regulations Total 115 Structure of the Exam The exam is composed of 120 multiple-choice items covering all of the materials in the following outline in accordance with the subject-matter distribution shown above.
    [Show full text]
  • Do Firms Follow GAAP When They Record Share Repurchases?
    Advances in Accounting, incorporating Advances in International Accounting 34 (2016) 41–54 Contents lists available at ScienceDirect Advances in Accounting, incorporating Advances in International Accounting journal homepage: www.elsevier.com/locate/adiac Do firms follow GAAP when they record share repurchases? Monica Banyi a,⁎, Dennis Caplan b a College of Business and Economics, University of Idaho, Moscow, ID 83843, United States b University at Albany (SUNY), Albany, NY, United States article info abstract Article history: This paper examines U.S. firms' accounting for share repurchases and the accounting choice provided to Received 4 May 2016 Delaware-incorporated firms between the treasury and retirement methods. This accounting choice does not Received in revised form 15 July 2016 affect income, cash flows, or net assets, but it nevertheless affects financial reporting transparency and the allo- Accepted 19 July 2016 cation of equity between retained earnings and contributed capital. According to Generally Accepted Accounting Available online 4 August 2016 Principles (GAAP), the accounting choice to record share repurchases should reflect management's intended disposition of the repurchased shares. We compare characteristics of Delaware-incorporated treasury and retire- Keywords: fi fi Share repurchases ment rms and nd that the choice between the two accounting methods is not always consistent with GAAP, Treasury stock but neither is it random; rather, this choice is related to a number of firm characteristics including firm growth, Accounting choice industry membership, trading exchange, and price–earnings ratio. We also find that a firm's accounting method for share repurchases is associated with a firm's propensity to make future share repurchases.
    [Show full text]
  • The Sale of Treasury Stocks and Protection of Management Rights
    KDI FOCUS May 1 , 2017 (No. 82, eng.) For Inquiry: KDI Communications Unit Address: 263, Namsejong-ro, Sejong-si 30149, Korea Tel: 82-44-550-4030 Fax: 82-44-550-0652 Authors | Sung Ick Cho, Fellow at KDI (82-44-550-4137) KDI FOCUS | Analysis on critical pending issues of the Korean economy to enhance public understanding of the economy and provide useful policy alternatives Korea’s Leading Think Tank www.kdi.re.kr The Sale of Treasury Stocks and Protection of Management Rights Sung Ick Cho, Fellow at KDI “Treasury stocks play a vital role in retaining, protecting and transferring management rights in large enterprises. However, the sale of treasury stocks is essentially identical to the issuance of new shares in economic nature. Therefore, using treasury stocks to protect management rights could obscure the equal treatment of shareholders. Even if such practices are permitted for policy purposes, the government needs to put other measures into place to protect general and minority shareholders from the damages that may arise.” Ⅰ. Introduction Treasury stocks have garnered mounting attention in the wake of the Cheil Industries Inc. (formerly Samsung Everland) and Samsung C&T merger in 2015 and Samsung Electronics’ recent review of a split-off. At the same time, however, the myriad of highly technical and complicated contents in relation to legal and accounting matters have created more confusion than understanding. In order to shed light on the issue of treasury stocks, take the merger between Cheil * Based on Cho, Sung Ick and Yong Hyeon Yang, A New Discipline for the Inter-Corporate Sharehold- ing, Research Monograph, 2016-05, Korea Development Institute, 2016 (in Korean).
    [Show full text]
  • 3 in US for Advanced Degrees $15 Billion in Global Exports
    #3 in U.S. for advanced degrees SUPPLY $15 billion in global exports DEMAND Access to highly skilled talent and a strategic Northeast location. That’s just a sampling of the dynamic blend of advantages that make Connecticut a great place to start or grow a business. 2017 Connecticut Economic Review Connecticut is still revolutionary. At the epicenter of the Northeast. At the forefront of innovation. ME VT NH BOSTON NY MA CT HARTFORD NJ PA NEW YORK CITY Connecticut Rankings in U.S. Share of insurance jobs 1st Advanced degrees per capita 3rd Healthy residents 3rd Business R&D per capita 4th Quality of life 5th Productivity per capita 5th Energy efficiency 5th State innovation 5th Scientists and engineering doctorates 6th Patents per capita 7th Venture capital deals per 1 million residents 8th A Revolutionary Spirit at Work Welcome to Connecticut, where your business will find a receptive home, unparalleled talent and a revolutionary spirit that will help you innovate, grow and succeed. While we house world-class leaders in insurance and finance as well as manufacturing and aerospace, Connecticut has grown to become a global hub in bioscience, digital media and green technology. We enjoy a combination of a real entrepreneurial spirit, remarkable experience and one of the most educated and productive workforces in the world. Together, these attributes make Connecticut the ideal place to call your business home. Learn how to start or expand your business in Connecticut by visiting CTforbusiness.com, or by calling 1-800-392-2122. We look forward to hearing from you, and to sharing the many advantages of how working and living in Connecticut can help your company be revolutionary! Sincerely, Dannel P.
    [Show full text]
  • Staff Accounting Bulletin (SAB) Revises Or Rescinds Portions of the Interpretive Guidance Included in the Codification of the Staff Accounting Bulletin Series
    SECURITIES AND EXCHANGE COMMISSION 17 CFR PART 211 [Release No. SAB 114] Staff Accounting Bulletin No. 114 AGENCY: Securities and Exchange Commission. ACTION: Publication of Staff Accounting Bulletin. SUMMARY: This Staff Accounting Bulletin (SAB) revises or rescinds portions of the interpretive guidance included in the codification of the Staff Accounting Bulletin Series. This update is intended to make the relevant interpretive guidance consistent with current authoritative accounting guidance issued as part of the Financial Accounting Standards Board’s Accounting Standards Codification. The principal changes involve revision or removal of accounting guidance references and other conforming changes to ensure consistency of referencing throughout the SAB Series. EFFECTIVE DATE: March 28, 2011 FOR FURTHER INFORMATION CONTACT: Lisa Tapley, Assistant Chief Accountant, or Annemarie Ettinger, Senior Special Counsel, Office of the Chief Accountant, at (202) 551-5300, or Craig Olinger, Deputy Chief Accountant, Division of Corporation Finance, at (202) 551-3400, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. SUPPLEMENTARY INFORMATION: The statements in staff accounting bulletins are not rules or interpretations of the Commission, nor are they published as bearing the Commission’s official approval. They represent interpretations and practices followed by the 1 Division of Corporation Finance and the Office of the Chief Accountant in administering the disclosure requirements of the Federal securities laws. Elizabeth M. Murphy Secretary Date: March 7, 2011 PART 211 — [AMENDED] Accordingly, Part 211 of Title 17 of the Code of Federal Regulations is amended by adding Staff Accounting Bulletin No. 114 to the table found in Subpart B. Staff Accounting Bulletin No. 114 This Staff Accounting Bulletin (SAB) revises or rescinds portions of the interpretive guidance included in the codification of the Staff Accounting Bulletin Series.
    [Show full text]
  • Analysis on Market Maker System in the NEEQ
    International Journal of Business and Social Science Volume 9 • Number 2 • February 2018 Analysis on Market Maker System in the NEEQ Weibin Luo Department of Accountancy Central University of Finance and Economics 39th South College Road, Haidian District, Beijing China Abstract This paper introduces the development of the NEEQ and the present situation of listed enterprises in the NEEQ, explains the trading system of the market maker system, and analyzes the revenues and the risks of the market makers, and then points out the existing problems of the market maker system. This paper finally offers some proposals of countermeasures and suggestions on perfecting market maker system in the NEEQ. Keywords: Market Maker System, NEEQ, Quotation, Supervision. 1. Introduction The NEEQ (National Equities Exchange and Quotations) is the third national securities exchange in China after Shanghai Stock Exchange and Shenzhen Stock Exchange, and is the first company system securities exchange place which has been approved by the State Council. According to the objective of constructing a sound, multi- level, highly developed securities market, the securities market system in China should be composed by the Shanghai and Shenzhen main board market, the Shenzhen small and medium sized board and growth enterprise market, and the NEEQ over-the-counter market. These three levels of market form the shape of Pyramid, where the Shanghai and Shenzhen main board market is the top, the small and medium-sized board and growth enterprise board are the middle part, and the NEEQ over-the-counter market is the base of the Pyramid. The NEEQ in China was established in 2006, and developed slowly before 2013.
    [Show full text]
  • Order Approving a Proposed Rule Change and Amendments No. 1
    SECURITIES AND EXCHANGE COMMISSION (Release No. 34-54999; File No. SR-NYSE-2006-30) December 21, 2006 Self-Regulatory Organizations; New York Stock Exchange, Inc. (a/k/a New York Stock Exchange LLC); Order Approving a Proposed Rule Change and Amendments No. 1 & 2 Thereto Relating to the Treasury Share Exception in NYSE Listed Company Manual Section 312.03, Section 312.04, Section 703.01(A), and Section 903.02 I. Introduction On May 5, 2006, the New York Stock Exchange LLC (the “Exchange” or “NYSE”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”)1 and Rule 19b-4 thereunder,2 a proposed rule change relating to the “treasury share exception” in NYSE Listed Company Manual Sections 312.03, 312.04, 703.01(A), and 903.02. On August 11, 2006, the Exchange filed Amendment No. 1 to the proposed rule change.3 On September 25, 2006, the Exchange filed Amendment No. 2 to the proposed rule change.4 The proposed rule change, as amended, was published for comment in the Federal Register on October 16, 2006.5 The Commission received one comment on the proposal.6 This order approves the proposed rule change, as amended. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Amendment No. 1 replaced and superseded the original filing in its entirety. 4 See Partial Amendment No. 2 to Form 19b-4 dated September 25, 2006 (“Partial Amendment No. 2”). 5 See Securities Exchange Act Release No.
    [Show full text]