Following up on this post, the SEC has just released a fact sheet concerning potential cross-border exchange mergers (see here). The fact sheet provides more comfort that the acquisition of a foreign exchange by a U.S. company will not automatically subject the foreign exchange and its listed companies to SEC regulations.
Here’s some excerpts:
- Joint ownership of a U.S. exchange and a non-US exchange would not result in automatic application of U.S. securities regulation to the listing or trading activities of the non-U.S. exchange.
- Whether a non-U.S. exchange, and thereby its listed companies, would be subject to U.S. registration depends upon a careful analysis of the activities of the non-U.S. exchange in the United States.
- The non-U.S. exchange would only become subject to U.S. securities laws if that exchange is operating within the U.S., not merely because it is affiliated with a U.S. exchange.
