Bermuda-based bond insurer Syncora Holdings Ltd. has applied to US regulator the Securities and Exchange Commission (SEC) to voluntarily de-register its shares from the New York Stock Exchange.

In filing the Form 15, the company's obligation to file certain reports and forms with the SEC, including Forms 10-K, 10-Q and 8-K, was immediately suspended. The company said that de-registration of its common and preferred shares will become effective in 90 days.

Syncora's securities will continue to be traded over the counter and its common shares quoted on the Pink Sheets, but the company can make no assurance that any broker will continue to make a market in its securities.

Syncora, spun off by Bermuda insurer XL Capital in 2006, has been ravaged by losses emanating from its guarantees of collateralised debt obligations (CDOs) - securities backed by pools of assets including sub-prime mortgage debt.

In the third quarter alone, Syncora posted a loss of $1.34 billion, and admitted it had "substantial doubt" over its ability to continue as a going concern.

XL paid Syncora $1.78 billion plus eight million shares in August to rid itself of virtually all of its reinsurance exposure to the bond insurer.