Clock ticking on firms that tripped listing rules

By Jonathan Spicer

NEW YORK (Reuters) - Time is running out on public companies that ran afoul of rules for staying listed on the major U.S. stock markets.

At the end of this month, temporary reprieves granted by the New York Stock Exchange and the Nasdaq Stock Market will expire, putting renewed pressure on companies that have suffered more than most in the financial crisis and economic slump.

Last fall, the Nasdaq decided to waive its market capitalisation and $1 minimum share price requirements to avoid a pending crush of delistings brought on by the severe market drop. The Big Board followed suit in the winter, the first time the centuries-old exchange made such a rule change.

The exchange operators extended those rule suspensions a few times over the last several months, but NYSE Euronext (NYX.N)(NYX.PA) and Nasdaq OMX (NDAQ.O) recently told the U.S. Securities and Exchange Commission they will again start enforcing the listing rules August 3.

As part of its latest extension, the NYSE said on June 30 "suitable companies should remain listed during the prior and current period of unusual market volatility."

The exchanges warn companies they are below listing requirements following a 30-day measurement period, which will begin anew next month.

The NYSE told Reuters some 24 companies are currently below the share-price requirement. About the same number had been below for at least 30 days when the rule was first suspended in February and that grew to as many as 100 during the worst of the market crash in March, the exchange said.

On June 30, the Big Board permanently lowered its minimum market cap for listings to $15 million (9 million pounds) from $25 million, relieving companies now facing that problem.