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NYSE Euronext announced today that the New York Stock Exchange will extend until June 30, 2009 the temporary lowering of its market-capitalization standard for listed companies. Through the same period, the NYSE also will suspend the application of its stock-price criteria. Today’s action reflects the Exchange’s determination that suitable companies should remain listed during the current period of unusual market volatility and decline.
“The overall market downturn has only deepened since we first enacted the easing of our market-capitalization standard on Jan. 23, causing an even larger number of stocks to fall below our requirements,” said Scott R. Cutler, EVP and Head of Listings for the
Specifically, the NYSE is addressing two continued-listing requirements:
- The NYSE on Jan. 23 temporarily changed to $15 million from $25 million the minimum global market capitalization required of listed issues. This temporary change is now extended until June; it otherwise would have expired on April 22.
- The Exchange is suspending until June 30, 2009, the application of its stock-price standard, which applies to stocks whose average closing price falls below $1 over a consecutive 30-day trading period.
While the Exchange’s filing submitted to the U.S. Securities and Exchange Commission (SEC) in connection with the adoption of this rule change is immediately effective, it is subject to a 30-day operative delay under SEC rules. The Exchange has asked the SEC to waive the operative delay and expects the SEC to take prompt action to effectuate that waiver.
Please click on the following link for the NYSE rule filing:
SR-NYSE-2009-21; Filed: 02/26/2009. Proposal to provide temporarily relief from NYSE Continued Listing Standards. (pdf)
