NASDAQ Proposes Listing Rules for Certain Derivative and Other Securities | Practical Law

NASDAQ Proposes Listing Rules for Certain Derivative and Other Securities | Practical Law

NASDAQ issued proposed rules for the qualification, listing, trading and delisting of certain derivative and other securities.

NASDAQ Proposes Listing Rules for Certain Derivative and Other Securities

Practical Law Legal Update 7-517-3940 (Approx. 3 pages)

NASDAQ Proposes Listing Rules for Certain Derivative and Other Securities

by PLC Corporate & Securities and PLC Finance
Published on 24 Jan 2012 • USA (National/Federal)
NASDAQ issued proposed rules for the qualification, listing, trading and delisting of certain derivative and other securities.
On January 20, 2012, NASDAQ issued proposed rules for the qualification, listing, trading and delisting of certain derivative and other securities. The NASDAQ proposal would adopt listing standards based on the relevant listing standards of the NYSE Arca, Inc. Equities Rules.
Existing NASDAQ Rule 5710, Securities Linked to the Performance of Indexes and Commodities (Including Currencies), currently includes initial listing standards for equity index-linked securities and commodity-linked securities. NASDAQ's proposal would amend Rule 5710 to add:
  • Continuing listing standards for:
    • equity index-linked securities; and
    • commodity-linked securities.
  • Both initial and continuing listing standards for the following types of securities:
    • fixed income index-linked securities;
    • futures-linked securities; and
    • multifactor index-linked securities.
In addition, proposed new Rule 5711, Trading of Certain Derivative Securities, would include listing standards for:
  • Index-linked exchangeable notes.
  • Equity gold shares.
  • Trust certificates.
  • Commodity-based trust shares.
  • Currency trust shares.
  • Commodity index trust shares.
  • Commodity futures trust shares.
  • Partnership units.
  • Trust units.
  • Managed trust securities.
  • Currency warrants.
The proposed rule changes are intended to define the specific products that NASDAQ intends to list and trade and the listing and qualification requirements for each of those products.
For more information about listing on NASDAQ, see Practice Note, Selecting a US Securities Exchange and Checklists, Initial Listing Requirements Chart: NASDAQ Stock Market and Continued Listing Requirements Chart: NASDAQ Stock Market.
For information on equity derivatives, see Practice Note, Equity Derivatives: Overview (US).