The New York Stock Exchange (NYSE) has filed a proposed rule change with the Securities and Exchange Commission (SEC) to introduce a new section in its Listed Company Manual regarding principal underwriters. The proposal aims to create a category known as "Limited Underwriting Members," allowing certain organizations to act as principal underwriters for companies seeking initial listings on the NYSE without granting them trading privileges. These members would be subject to a limited set of rules, including supervision and conduct standards, while still being regulated under the jurisdiction of the exchange. The SEC has published this notice to gather comments from the public about the proposed changes.
Simple Explanation
The New York Stock Exchange wants to let certain companies become "Limited Underwriting Members," which means they can help other companies join the stock exchange but can't trade stocks themselves. The rules for these members are still being decided, and people are asked to share their thoughts on this plan.