NYSE MKT Listing Requirements


The NYSE MKT is a specific tier of the NYSE. The NYSE MKT used to be known as the American Stock Exchange (AMEX), until the New York Stock Exchange purchased the AMEX in its entirety in 2008. The NASADAQ and NYSE MKT are essentially business operations that compete for attention and publicly traded companies. The NYSE MKT claims that choosing their exchange increases a company’s access to dedicated funding, has greater advocacy and networking opportunities. While each exchange is governed by SEC regulations, there are also specific rules that apply to each exchange.

The NYSE MKT offers investor relations, broker-dealer networking, and marketing services, and uses the Designated Market Maker (DMM) model. Under this model, a DMM is assigned to each security, and then both manual and electronic methods are used to create a stable market price. The DMM is also used to create an auction model, where all bids are recorded in the marketplace, and an opening price of the assigned securities is set each day. The DMM essentially acts as an intermediary party between the broker and market participants and the execution of trades, and generally increases trading volume.

Initial Listing Standards

Companies must meet minimum listing requirements that include a specific financial liquidity and corporate governance criteria. NYSE MKT also maintains the right to deny an application if they believe it is necessary to protect investors, even if all of the technical requirements have been met. Typically, the NYSE MKT would reject an application for the nature of the company’s business, regulatory history and future projections, and reputation of management.

As one of the most prestigious exchanges to be listed on, the NYSE MKT affords its patron companies many opportunities not found elsewhere. To gain an initial listing, companies must meet one of the following standards:

Financial Standards

Standard 1

Standard 2

Standard 3

Standard 4a

Standard 4b

Pre-tax Income

$750,000

-

-

-

-

Market Cap

-

-

$50 million

$75 million

-

Total Assets and Total Revenue

-

-

-

-

$75 million

Market Value of Public Float

$3 million

$15 million

$15 million

$20 million

$20 million

Stockholders Equity

$4 million

$4 million

$4 million

-

-

Minimum Price

$3

$3

$2

$3

$3

Operating History

-

2 years

-

-

-

Companies are also required to meet one of the following standards:

Additional Requirements

Option 1

Option 2

Option 3

Public Shareholders

800

400

400

Public Float

500,000

1,000,000

500,000

Daily Trading Volume (6 months prior)

-

-

2,000 shares


Getting Listed

The NYSE MKT listing process is a streamlined process designed to help companies who qualify get listed as easily and painlessly as possible. Initial listing fees for qualified companies are as follows:

Market entry fees, based on the total number of shares outstanding at the time of initial listing, includes a non-refundable application fee. Entry fees are due before the first day of trading.

Entry fees for the three different tiers are listed below:

Total Shares Outstanding

Entry Fee

Less than 5,000,000 Shares

$50,000

5,000,000 to 10,000,000 Shares

$55,000

10,000,001 to 15,000,000 Shares

$60,000

In excess of 15,000,000 Shares

$70,000 ($75,000 as of January 1, 2013)

How to Apply

Getting listed on the NYSE MKT is a four-step process. To apply, please visit the NYSE Get Started Page. The steps to getting listed in order are:

  1. 1. Choosing your market
  2. 2. Reserving your ticker symbol
  3. 3. Submitting your application
  4. 4. Selecting your DMM (Designated Market Maker)

The NYSE will get back to you within 14 business to let you know if your application was accepted.

Benefits of the NYSE MKT

The biggest benefits to trading on an exchange, is it increases a company’s ability to attract investors and coverage. Stocks that are traded on an exchange typically have higher trading volume and liquidity. In addition, stocks that are traded on an exchange are exempt from the penny stock definition.

Colonial Stock Transfer can help your company get listed on the NYSE MKT, in addition to the transfer agent services we offer. To speak with a professional today or to learn more about our services, please contact us.