On August 22, 2014, the SEC approved proposed amendments to NASDAQ Rule 5305(b) that eliminate NASDAQ's automatic annual review and transfer of qualified companies from The NASDAQ Global Market (Global Market) to The NASDAQ Global Select Market (Global Select). Previously, NASDAQ has reviewed Global Market-listed companies annually in October and automatically placed qualified companies into the higher Global Select tier the following January. The amendments eliminate Rule 5305(b) which provides for this review and automatic transfer and, accordingly, NASDAQ will no longer conduct them.

Going forward, Global Market-listed companies may continue to apply for transfer to the Global Select tier at any time by submitting a listing application. Likewise, as before, companies transferring from Global Market to Global Select will not be charged any entry or application fees. NASDAQ will notify Global Market-listed companies of the rule change via e-mail.

For more information on securities exchanges and how to select the proper exchange, see Practice Note, Selecting a US Securities Exchange.