TheCorporateCounsel.net

In a couple of recently proposed rule changes posted for notice on the SEC website, Nasdaq has made immediately effective changes to modernize some of the provisions governing fees that the exchange charges companies.

The first set of amendments stems from a change to Nasdaq’s initial & all-inclusive annual fees that became effective at the beginning of this year. These January fee updates do the following:

(i) replace the tiered entry fee structure with a flat fee of $270,000 when a Company first lists a class of equity securities on the Nasdaq Global or Global Select Market;

(ii) modify the Exchange’s all-inclusive annual listing fees for all domestic and foreign companies listing equity securities covered by Listing Rules 5910 and 5920 on the Nasdaq Global Select, Global and Capital Markets;

(iii) replace the two-tier entry fee structure with a flat fee of $80,000 when an Acquisition Company, as defined in Nasdaq rules, first lists a class of equity securities on Nasdaq;

(iv) adopt an all-inclusive annual listing fee structure specific to Acquisition Companies listing on the Nasdaq Capital Market; and

(v) replace the current three-tier all-inclusive annual listing fee structure for all Acquisition Companies with a two-tier structure.

Nasdaq is now effecting clean-up amendments to Rules 5910 & 5210 – to delete expired & obsolete provisions that are no longer relevant in light of the simplified fee structure.

These changes to NASDAQ’s fee structure are similar to NYSE updates that went effective last year…which have since increased as reflected in the NYSE Listed Company Manual.

– Liz Dunshee