Corporate Governance

Nasdaq Listing Requirements Suspension Continued, Joined by NYSE

By Charlene Hunter

We wrote on Feb 4^th that Nasdaq received an extension of its request to suspend the one dollar minimum listing standards until April 19^th. That request has now been extended through July 19, 2009, and the NYSE filed a proposed rule to adopt a similar suspension until June 30.

The rule to be suspended requires that if a security fails to have a closing bid price of at least one dollar for 30 consecutive business days, it is considered deficient and given a 180-day period to regain compliance. Under the suspension, both the 30-day period and the 180-day period are held in abeyance until the suspension is ended.

In addition to suspending the dollar bid value requirement, the NYSE previously suspended its average global market capitalization listing requirement that companies not fall below $15 million for 30 consecutive days. This rule suspension was to have expired April 22, but is now proposed to be extended to June 30, corresponding to the dollar value suspension.

These requests for continued suspension of the listing standard are not surprising. The suspension is immediately effective and is certain to be approved as markets continue to be in 'unprecedented turmoil.'

Full post as published by The Race to the Bottom on May 11, 2009 (boomark / email).