Downlisting

Due to the high costs and demanding obligations associated with listing, the attractiveness of going public also depends on the restrictions imposed on exit from regulated markets. Downlisting to exchange-regulated multilateral trading facilities, subject to simplified requisites but designed to ensure an adequate level of investment protection, can address the cost-benefit issue associated with remaining listed on regulated markets and is preferable to outright voluntary delisting. Downlisting remains mostly unregulated at the national level in the EU. The barriers to downlisting can favor delisting, which is on the rise across the EU, and may further discourage going public. After reviewing the regulatory status quo regarding downlisting in a number of EU jurisdictions and considering the need to give companies more flexibility in their choice of exit from regulated markets, the harmonization of the regulatory framework for downlisting is discussed.