SEC approves NASDAQ proposal to eliminate automatic upgrade to Global Select Market

by Cydney Posner

The SEC has approved NASDAQ’s proposal, as discussed in this post, to modify Rule 5305 to eliminate the annual review and automatic transfer of companies from the NASDAQ Global Market to the NASDAQ Global Select Market. As a result, NASDAQ will now review Global Market-listed companies for transfer to the Global Select Market only upon application by the company. The rule change was implemented on approval by the SEC on August 22, and NASDAQ intends to notify Global Market-listed companies about this change by e-mail.  Accordingly, the group of companies that were automatically transferred in January 2014 will be the last group automatically transferred. Companies will now need to monitor whether they qualify to transfer instead of relying on NASDAQ to inform them. Companies will be able to apply for the upgraded listing at any time, and the associated review will be conducted by NASDAQ without cost to the company. Upon confirmation by NASDAQ staff that the company meets the Global Select Market listing requirements, qualified companies could transfer Immediately and would not owe any entry or other fees in connection with the transfer.

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