Yesterday, the NYSE announced that it was extending its previous temporary relaxation of listing standards through June 30, 2009. This temporary relief lowered the delisting threshold under Section 802.01B of the Listed Company Manual, which ordinarily requires the prompt delisting of any company, including REITs and investment companies, with an average global market capitalization of less than $25 million for a consecutive 30 day period. The NYSE had previously reduced the market cap limit to $15 million, but that relief was scheduled to expire on April 22, 2009.
The NYSE also has provided temporary relief from the application of its stock-price standard, under Section 802.01C, which requires delisting of stocks whose average closing price falls below $1 over a consecutive 30-day trading period. This relief will also remain in effect until June 30, 2009, but was not part of the original temporary relief announced last month.
While the effective date of changes to listing standards are typically delayed for 30 days, the NYSE requested in its filing that the SEC waive this requirement and allow the temporary relief to have immediate effect.