Tue Feb 24, 2009 2:08pm EST

By Jonathan Spicer and Jonathan Stempel

NEW YORK, Feb 24 (Reuters) - New York Stock Exchange parent NYSE Euronext (NYX.PA)(NYX.N), under pressure from the sharp market selloff, said on Tuesday it is in talks with U.S. regulators about easing its requirement that listings maintain a share price above $1.

The move would relieve pressure on listed companies while helping to stem a crush of delistings that has accelerated over the last few months. The exchange has not yet submitted a formal proposal to the U.S. Securities and Exchange Commission, a spokesman said.

Last month, the Big Board temporarily lowered its market capitalization requirement, the NYSE's first such rule change. But stocks have continued to fall, pushing the shares of giant financial services company Citigroup Inc (C.N), for example, below $3 and No. 2 U.S. carmaker Ford Motor Co (F.N) below $2.

In an interview, Richard Ketchum, chief executive of oversight body NYSE Regulation, said: "Usually, the dollar standard identifies ... companies (that) are falling like a rock to bankruptcy.

"Today, we have a very different market, where many companies are trading under a dollar. Having greater flexibility on reaching listing decisions is better for investors," said Ketchum, who, separately, was named chief executive of the Financial Industry Regulatory Authority on Tuesday. [ID:nN24414003]

Rival Nasdaq Stock Market, operated by Nasdaq OMX (NDAQ.O), suspended its minimum-price listing requirement for similar reasons in October and extended the suspension in December. Nasdaq's rule suspension expires April 20.

Both NYSE Euronext and Nasdaq OMX derive between 10 percent and 15 percent of overall revenues from listings.

The stock market selloff has hammered companies worldwide, including those on the NYSE, the world's largest stock exchange as measured by the market capitalization of listings. The Dow Jones industrial average .DJI, an index dominated by NYSE listings, has lost half of its value in the last 16 months.

The NYSE delisted 53 companies last year -- the most since 2002 -- because they failed to meet minimum standards.

About half of last year's delistings tripped the NYSE's market cap requirement, which it lowered to $15 million from $25 million on Jan. 23. That rule suspension expires April 22. [ID:nN23301547]

NYSE companies whose shares fall below $1, on average, for 30 days receive a letter warning that they face delisting within six months unless the shares rise. On the Nasdaq, companies receive the letter after 30 consecutive days below $1. (Editing by John Wallace, editing by Gerald E. McCormick)