Globalstar: Procedural error causes stock market suspension
Many banks and neobrokers have suspended trading with Globalstar, leaving customers in the dark.
Symbolic image – This satellite is not from Globalstar.
(Image: Andrey Armyagov/Shutterstock.com)
The US satellite network operator Globalstar has changed its stock exchange listing from the New York Stock Exchange (NYSE) to Nasdaq. This is accompanied by difficulties: the Frankfurt Stock Exchange has suspended trading in Globalstar shares. As a result, buying and selling at some banks and neobrokers such as Trade Republic and Scalable Capital is no longer possible for the time being as of Tuesday morning. Both neobrokers failed to provide an explanation.
Temporary procedural error
In an inquiry, the Frankfurt Stock Exchange referred to Bankhaus Scheich, through which Globalstar shares are traded in Frankfurt. When asked, a Scheich spokesperson admitted a procedural error in the change of the US stock exchange.
According to this, a settlement statement was submitted incorrectly, which is why Scheich is currently not allowed to trade the shares. As soon as a corrected version is available and the green light is given from the USA, the German banks and neobrokers will resume trading – then under the new International Security Identification Number (ISIN) US3789735079. It is not known how long this will take.
The share can be traded on eToro and in the Comdirect custody account even after the switch to Nasdaq, as purchases and sales are not processed via Scheich. Comdirect works together with the French Société Générale, eToro trades the shares itself.
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Some neobroker customers have also missed the fact that the switch from NYSE to Nasdaq is also accompanied by a reverse stock split. Globalstar already informed about this at the end of 2024, but not Trade Republic. Globalstar is merging 15 securities into one share. On the Nasdaq stock exchange, a Globalstar share is currently worth just under 22 US dollars, equivalent to just over 21 euros. The price has fallen by almost 10 percent since the stock exchange opened on Wednesday.
Anyone who held Globalstar shares before the change will have them credited again when trading resumes. Until then, they will remain frozen.
(mma)
