On June 19, 2017, the New York Stock Exchange withdrew its proposal, originally submitted in March, to allow companies to list on the big board through a so-called “self-filing” without an IPO. In a self-filing, a company seeks for previously issued shares of stock to be registered with the SEC so that they can be publicly resold, and this is the method by which the company goes public. No new money is raised in the process.

Shortly after the SEC’s proposal, online music provider Spotify said it might consider a self-filing. The company is flush with cash and does not need to raise money currently, but sees the benefit of being public and in avoiding an expensive underwriting firm.

The NYSE did not indicate why it decided to change its mind. Did they fear the SEC would not approve it for some reason? Did they receive resistance from the investment banking community? One can only speculate. It is disappointing that this legitimate alternative to an IPO will not be available – at least in the near term – to companies seeking the advantages of a public trading stock on the world’s largest stock exchange.