NASDAQ Enacts New Rule To Delist Companies Following An SEC Trading Suspension
On June 3, 2026, the SEC approved Nasdaq’s proposed rule change granting the Exchange the authority to de-list a company following an SEC trading suspension. The rule proposal was filed on March 3, 2026 (see HERE). The new rule continues Nasdaq’s steady and deliberate shift over the past few years to tighten its oversight of smaller public companies and to be able to quickly remove companies from the market that, in Nasdaq’s view, no longer meet baseline viability. The new rule went effective immediately on June 3rd, 2026.
Updating my running tally, other recent Nasdaq initiatives include: (i) proposed amendments that would impose a new continued listing requirement requiring all Nasdaq Global Market and Nasdaq Capital Market companies to maintain a minimum Market Value of Listed Securities of at least $5 million (see HERE); (ii) an amendment to grant Nasdaq discretionary authority to deny listings based on activity by outside third parties associated with a