This Blog is not intended to be focused on current events, but very now and them there are articles that go to the heart of the focus of this forum. We have discussed the shift in the NYSE (and Nasdaq) to “for profit” status and questioned whether, in the specific context of the merger between the NYSE and Euronext, these entities can run their business and provide adequate regulatory oversight.  In particular, we have questioned the conflict between profit maximization and the enforcement of listing standards.

In Journal article earlier this year (NYSE, Nasdaq Drop Gloves To Battle for Stock Listings, Feb. 28, 2007), the Journal  noted the increased competition for listings between Nasdaq and the NYSE, mentioning that the stakes are high, involving $550 million in revenues. The NYSE lost its first listing to Nasdaq in 2000, and since then, ten additional companies have departed for the competitors. On the other side, 150 companies have left Nasdaq for the NYSE during the same period. 

All of this merely highlights the dollar amounts involved in maintaining listing standards and the harm to profit margins that can result from delisting.