NYSE Asks SEC To Ease Listing Requirements Due To Coronavirus-Caused Market Wipeout

Intercontinental Exchange Inc. ICE subsidiary New York Stock Exchange is talking to officials at the United States Securities and Exchange Commission to get the federal agency to ease listing requirements, Reuters reported Monday.

What Happened

The SEC had previously rejected a NYSE proposal on the matter last Friday, but the talks between the two have continued, Farrell Kramer, a NYSE spokesperson told Reuters.

The move will provide relief to a host of companies, which are suffering from the marketwide slump caused by the novel coronavirus (COVID-19) pandemic.

S&P 500 Index is down 17.5% year-till-date, Dow Jones is down 20.5%, and Nasdaq Composite Index has lost 11.8% in 2020.

"We are committed to advocating on behalf of our issuers during these challenging economic times and continue to speak with the SEC staff about this and other proposed rule changes," Kramer told Reuters.

The NYSE is asking the SEC to temporarily suspend the requirement to maintain a share price of more than $1 and an average global market capitalization of $50 million for 30 consecutive trading days, according to Kramer.

If approved by the SEC, this will be the first time that the exchange lowers its requirement since the global financial crisis in 2009.

Price Action

Intercontinental Exchange shares closed 4.25% higher at $84.43 on Monday.

Photo Credit: Courtesy of NYSE Instagram.