By Cydney Posner

The SEC has posted a notice regarding the immediate effectiveness of an NYSE pilot program, extending through October 31, 2009, that reduces the market cap requirement in Section 802.01B of the Listed Company Manual for continued listing of certain companies.

Prior to effectiveness of the new Pilot Program, Section 802.01B(I) provided that any company that qualified to list under the Earnings Test set out in Section 102.01C(I), under the Assets and Equity Test set forth in Section 102.01C(IV) or under specified other tests, would be considered to be below compliance standards if average global market cap over a consecutive 30 trading-day period were less than $75 million and, at the same time, total stockholders' equity were less than $75 million. Under the Pilot Program, companies that listed under these initial listing standards will be considered to be below compliance standards only if average global market capitalization over a consecutive 30 trading-day period is less than $50 million and, at the same time, total stockholders' equity is less than $50 million. Companies that were below compliance with the non-pilot continued listing requirements were deemed to have returned to compliance at the time of effectiveness of the filing, unless they were below the levels established under the Pilot Program.

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