Effective on January 22, the New York Stock Exchange, LLC temporarily lowered the average global market capitalization required of listed companies from $25 million to $15 million. This temporary reduction will apply through April 22. All of the NYSE’s other listing criteria will continue to apply during this period.
According to the NYSE’s submission to the Securities and Exchange Commission, as a consequence of the current market crisis, the number of companies listed on the NYSE whose average global market capitalization has fallen below $25 million over a 30-day trading period has been significantly higher than the historical norm. The NYSE believes that in many of these cases, companies have experienced stock price declines because of unusual market conditions rather than company-specific problems, and that their market capitalizations may return to prior levels “once the current market turbulence passes.”
While under the SEC’s rules, a self-regulatory organization’s proposed rule change normally does not become operative for 30 days after the date of its filing with the SEC, the NYSE requested, and the SEC granted, a waiver of the 30-day delay, with the result that the NYSE’s rule change became operative immediately upon filing with the SEC on January 22.