The European Commission has sent a letter to the US Securities and Exchange Commission (SEC) to express its support for the amendment of US rules concerning deregistration from US capital markets. Currently, a non-US company who wants to deregister from US capital markets must fulfil certain criteria based on the number of its US investors. The new rules will focus on a comparison between the non-US company’s average daily trading volume (ADTV) on the US market and that on its primary market. The Commission recommends that the SEC increase the threshold for the US ADTV from its current level of five per cent and compare it with the worldwide ADTV, rather than the primary market ADTV. If adopted, the new rules may result in greater interest for EU companies to enter US capital markets because it would be easier to leave those markets.
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EU supports US plans for rules on deregistration from capital markets
- McDermott Will & Emery
- Elena Kostadinova
- European Union, USA
- February 16 2007
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