SEC adopts new rules to permit deregistration by non-US issuers

Sara Hanks and Richard Pritz, Clifford Chance LLP, New York.

At its 21 March 2007 open meeting, the Securities and Exchange Commission (SEC) adopted amendments to current rules governing permanent termination by foreign private (non-governmental) issuers (or FPIs) of registration of their securities with the SEC and related reporting obligations under the Securities Exchange Act 1934. Under the new rules, FPIs may deregister a class of securities if no more than 5% of the average daily trading volume for those securities occurs in the US.