Dec 6, 2019

SEC rejects NYSE plan for direct listings

Illustration: Sarah Grillo/Axios

U.S. securities regulators have rejected an application by the New York Stock Exchange to allow companies to raise capital during direct listings, Axios has learned.

Why it matters: As we wrote earlier, the NYSE proposal could have upended the traditional IPO market, which has relied on Wall Street banks to set pricing terms.

What they're saying: “We remain committed to evolving the direct listing product. This sort of action is not unusual in the filing process and we will continue to work with the SEC on this initiative," per an NYSE spokesperson.

What's next: The SEC had until Friday to accept or reject the proposal, so expect NYSE to meet with regulators to determine next steps. The exchange remains determined to create these "hybrid" structures, which many venture capitalists and startups believe are in the best interest of both themselves and investors.

  • Rival exchange Nasdaq also is working on its own proposal.

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NYSE proposes allowing companies to raise capital in direct listings

Illustration: Lazaro Gamio/Axios

The New York Stock Exchange yesterday laid the formal groundwork for letting companies raise capital as part of direct listings.

Why it matters: This could upend the traditional IPO market, which has relied on Wall Street banks to set pricing terms.

Go deeperArrowNov 27, 2019

NYSE files new direct listings proposal

Photo: Scott Heins/Getty Images

The New York Stock Exchange on Wednesday filed a new proposal with federal regulators, aimed at allowing companies to raise money via direct share listings.

Details: The proposal has slightly different numbers than the original effort, which the SEC rejected last week, but still would help companies go public without relying on Wall Street banks to price their shares.

Go deeper: NYSE proposes allowing companies to raise capital in direct listings

Keep ReadingArrowDec 11, 2019

SEC’s 2019 cases against publicly traded companies hit decade high

Reproduced from Cornerstone Research; Chart: Axios Visuals

The number of cases the SEC filed against publicly traded companies hit at least a decade-high this year, according to findings from New York University and Cornerstone Research that analyzed the SEC’s annual report. Total cases initiated by the SEC — against public companies or not — jumped to the highest level since 2016.

Why it matters: Over 50 of the enforcement actions on public company and subsidiaries targeted investment advisers or brokers — a nod to SEC chairman Jay Clayton’s emphasis on protecting the retail investor.

Go deeperArrowNov 26, 2019