Fannie Mae-No Politics (FNMA)

[Ace Magoo]

It was confusing at best, but to me it is nothing short of deceptive.

UPDATE 1-NYSE kills sub-penny halt rule, re-list 91 stocks

* NYSE to relist 91 stocks, including Fannie, Freddie

* Stocks below $1.05 will no longer go to Arca

* NYSE to round sub-penny quotes to nearest penny

NEW YORK, Nov 14 (Reuters) - The New York Stock Exchange will no longer halt trading in stocks that fall below $1.05, allowing the exchange to relist some 91 securities, including U.S. mortgage giants Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz), Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) and Nortel Networks Corp (NT.N: Quote, Profile, Research, Stock Buzz).

The exchange's parent, NYSE Euronext (NYX.N: Quote, Profile, Research, Stock Buzz), said it received approval from the U.S. Securities and Exchange Commission to relist the securities, starting Monday.

The move eliminates the "sub-penny trading halt" rule that bumps depressed stocks to NYSE's small-cap Arca platform. As of next week, the NYSE will round quotes that trade in increments below one cent to the nearest penny. (Reporting by Jonathan Spicer; editing by Jeffrey Benkoe)

http://www.reuters.com/article/marketsNews/idCAN1428245320081114?rpc=44


But then reading this cleared it up a little:

http://www.theglobeandmail.com/servlet/story/RTGAM.20081114.wnyse1114/BNStory/Business/

It appears what is being said is that the NYSE platform couldn’t handle sub penny increments, i.e. .4011 and has to round to nearest penny, i.e. .40, so stocks were getting shifted to the ACRA platform at 1.05 so they could be traded in sub penny increments which ACRA could handle. As of Monday the NYSE platform can handle sub penny increments so stocks trading in sub penny increments can now be traded there instead of ACRA. That is, until they get delisted for not being in NYSE compliance anyways.