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NYSE drops initial fees for switching companies in listings war
January 19, 2017 / 4:17 PM / a year ago

NYSE drops initial fees for switching companies in listings war

NEW YORK, Jan 19 (Reuters) - The New York Stock Exchange has waived the first partial year of annual listing fees for companies that transfer their stock to the Big Board from another exchange, a move that could help it poach more companies from rival Nasdaq.

Companies that currently list on the NYSE have to pay a pro-rated annual fee when they switch from Nasdaq, said NYSE, which is owned by Intercontinental Exchange Inc, in a filing with the U.S. Securities and Exchange Commission dated Jan. 18.

The market for listings is fiercely competitive, from courting initial public offerings, such as the highly anticipated IPO of Snapchat parent Snap Inc, to luring firms from rival exchanges, both of which can be huge public relations windfalls.

Currently, only NYSE and Nasdaq list the shares of other companies, while Bats Global Markets lists only its own stock, preferring to focus on exchange-traded products such as exchange-traded funds and notes. IEX Group, the newest U.S. stock exchange, has said it plans to begin competing for corporate listings this year.

NYSE noted that companies transferring in mid-year will already have paid annual listing fees to the exchange on which they were previously listed.

The “double payment the exchange’s prorated annual fee imposes on them imposes a significant financial burden and acts as a disincentive to transferring,” NYSE said.

Listing fees vary depending on the size of the company, the number of shares listed, and the exchange they list on, among other factors.

In 2015, NYSE earned $405 million in revenue from listings, while Nasdaq made in $264 million in listings services revenue. (Reporting by John McCrank; Editing by Bernadette Baum)

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