The New York Stock Exchange is in talks with regulators to ease its listing requirements for companies that have failed compliance due to the market strain caused by the coronavirus.
The U.S. Securities and Exchange Commission declined the initial proposal filed by the NYSE to forego listing requirements until June, said Farrell Kramer, spokesman for NYSE.
The S&P 500 has lost over 20% of its gains since February due to extreme volatility in the market.
The NYSE has filed for a temporary suspension of the compulsory maintained share price of $1 and the average global market cap of $50 million for 30 trading days.
In the exchange’s original filing, it recognized the disruptions experienced by several businesses and the need to prioritize emergency measures for the protection of their employees.
Marking companies that failed compliance might incur negative impressions on investors. The drop in share prices are perceived to be caused by the general market situation rather than specific company factors, the exchange added.
The NYSE’s last temporary suspension of listing requirements was in 2009 during the global financial crisis.