On February 26, the New York Stock Exchange filed an immediately effective rule amendment with the Securities and Exchange Commission that suspends the application of the NYSE’s minimum stock price requirement and continues its decreased market capitalization requirement. Both NYSE rule amendments are scheduled to expire on June 30. The changes come on the heels of NASDAQ’s October 18, 2008, rule amendment temporarily suspending certain of its own minimum listing and capitalization requirements in the wake of upheaval in the world’s capital markets.
Previously, the NYSE-listed issuers whose stock price fell below $1.00 per share over a consecutive 30 trading day period would not be considered in compliance with NYSE rules and would be given six months to come back into compliance. During the suspension of the minimum price standard, issuers will not be notified of new events of noncompliance, and companies that were non-compliant prior to the suspension of the minimum price rule that do not regain compliance during the suspension period will, upon reinstitution of the stock price continued listing standard, receive the remaining balance of their six months to regain compliance with the rule.
The NYSE also extended its current reduction of its average global market capitalization continued listing requirement, which was scheduled to expire on April 22. During the reduction of the market capitalization requirement, the rule will only apply to issuers whose average global market capitalization falls below $15 million for a 30 trading day period, a decrease from NYSE’s standard $25 million threshold.