BX listing platform to provide quality regulation and market structure
The NASDAQ OMX Group has announced that it will establish a new listing market called BX, for companies that do not presently qualify for an exchange listing.
Reportedly, BX will be a venue for companies that aspire to list on, or return to, the NASDAQ stock market. While BX will have basic quantitative listing standards, the exchange will require companies to comply with many of the qualitative requirements for listing on NASDAQ and other securities exchanges. In addition, transactions on this platform will be subject to real-time and post-trade market surveillance.
According to the NASDAQ OMX, the companies which qualify for BX will need to meet qualitative listing requirements including having at least three independent directors, a fully independent audit committee and an independent process for oversight of executive compensation decisions. However, the new establishment is subject to regulatory approval.
The NASDAQ OMX expects that candidates for BX are presently trading on one of the over-the-counter venues, either the OTCBB or the ‘Pink Sheets’, or are listed on NASDAQ or another exchange and subject to being delisted.
Bob McCooey, senior vice president of NASDAQ OMX, said: “With BX we are filling a necessary need for a well-regulated listing venue for companies that otherwise would transfer to, or remain on an unregulated or lightly regulated platform. This platform will provide significant benefits and protections to companies and their shareholders alike.”