The Securities and Exchange Commission (SEC) has allowed the New York Stock Exchange (NYSE) to change a previous exemption that lets them trade debt securities on NYSE Bonds, even if these aren't registered under the Exchange Act. Previously, the issuer needed to have shares listed on the NYSE, but now these shares can be listed on any national securities exchange. This change aims to reduce regulatory differences and boost competition between exchange-traded and over-the-counter markets for these securities. The decision includes measures to safeguard investors, like ensuring continuous monitoring of the issuers' equity securities that allow their debt securities to trade on the NYSE.
Simple Explanation
The SEC decided to let the New York Stock Exchange change a rule so they can trade certain types of debt (money borrowed by companies) even if they aren't registered, as long as the company's main stocks are traded anywhere in the U.S. This change is to make things fairer and more competitive and includes rules to help keep investors safe.