Search Results for keywords:"liquidity requirements"

Found 2 results
Skip to main content

Search Results: keywords:"liquidity requirements"

  • Type:Notice
    Citation:90 FR 12608
    Reading Time:about 16 minutes

    The Securities and Exchange Commission (SEC) has approved changes to the Nasdaq Stock Market's initial listing requirements on an accelerated basis. These changes require that companies listing on the Nasdaq Global Market or Nasdaq Capital Market through an initial public offering (IPO) meet a minimum market value of publicly held shares solely with the proceeds from the offering. Additionally, companies uplisting from the U.S. over-the-counter market will also need to meet this requirement using only IPO proceeds. The purpose of these changes is to enhance liquidity and stability for newly listed securities.

    Simple Explanation

    The SEC made a new rule for companies that want to join a special market called Nasdaq. This rule says the companies need to have a certain amount of money from their sales to be allowed in, making it safer and steadier for people buying their shares.

  • Type:Proposed Rule
    Citation:86 FR 1306
    Reading Time:about 107 minutes

    The Federal Housing Finance Agency (FHFA) has proposed a new rule introducing liquidity and funding requirements for Fannie Mae and Freddie Mac, addressing weaknesses revealed during the 2008 financial crisis. These requirements aim to ensure the companies have enough liquid assets to cover short-term and long-term financial needs, reducing the risk that they will require taxpayer bailouts. The rule also includes reporting obligations for the companies, mandating that their liquidity positions and management strategies be shared with FHFA and the public. The proposal invites public comments and suggests adjustments to liquidity requirements during economic stress.

    Simple Explanation

    The FHFA wants Fannie Mae and Freddie Mac to have plans so they always have enough money to pay their bills, even when things get tough, so they don’t need to borrow from others.