US Exchanges Propose Rule Changes for Listings and Fees
Major US exchanges are updating their rules for market participants. Nasdaq filed a proposal to expand listing options, while the NYSE proposed changes to its Listed Company Manual. MIAX Pearl also amended its fee schedule to introduce new real-time reporting tools, reflecting a broader trend toward greater transparency.
- Nasdaq's "Fast Entry" proposal aims to include large-capitalization companies in indexes within 15 sessions of listing, a response to situations where major IPOs have remained outside key benchmarks for months. This rule would exempt such companies from standard seasoning and liquidity requirements and is partly motivated by anticipated large tech and AI IPOs. - The NYSE's proposed change to its Listed Company Manual would expand the types of "rights" that can be listed, allowing them to be offered to entities other than existing shareholders and potentially without upfront payment. To qualify, these newly defined rights must meet initial listing requirements, including at least 1,000,000 rights issued and a market value of publicly-held securities of at least $10 million. - MIAX Pearl's fee schedule amendment introduces a new data product: a "1-Minute Report" that provides a granular summary of trading activity, including origin, side of the market, and whether trades are opening or closing transactions. This historical data product is designed to offer deeper insights into investor sentiment. - The trend towards stricter listing standards is also evident at NYSE American, which proposed raising its minimum initial share price from $2.00-$3.00 to $4.00, aligning with Nasdaq's standards and rules concerning "penny stocks." - Nasdaq is also tightening its ongoing listing requirements by proposing a rule to suspend and delist companies whose market value of listed securities falls below $5 million for a sustained period. - MIAX Pearl also filed to amend its fee structure to comply with the SEC's Regulation NMS Rule 610(d), which mandates that all transaction fees and rebates must be determinable at the time of execution. This change shifts volume calculations for tiered pricing to be based on the prior month's activity, increasing cost transparency for trading firms.
