What are listing requirements?

Listing requirements, which encompass both admission requirements and continuing requirements, vary across products and across exchanges.

Some common admission requirements are:

• Having a minimum initial free float (e.g. 25% and/or 500.000 shares);
• Having a minimum initial market capitalization (e.g. 1 million euros);
• Having existed for a minimum of years (e.g. 5 years);
• Having published periodic financial information for a minimum of years (e.g. 3 years);
• Having a minimum initial stock price (e.g. 2€);
• Having a minimum number of market makers (e.g. 2);
• Having a minimum number of independent directors (e.g. more than 50%).

Some common continuing requirements are:

• Paying the respective fees to the exchange;
• Publishing periodic financial information;
• Publishing all material information which, when made public, will likely impact the stock price;
• Publishing corporate actions, and reporting them to the exchange a few days in advance;
• Maintaining the stock price above a certain level (e.g. 1€), by pursuing reverse stock splits if necessary;
• Maintaining a minimum number of market makers (e.g. 2);
• Maintaining a minimum number of independent directors (e.g. more than 50%);
• Avoiding actions that may damage the reputation of the exchange.

If the issuer fails to comply with any of the continuing requirements, the exchange operator may fine the issuer, suspend the trading of the securities, relocate the securities to special trading groups or, even, delist the securities.