SEC Approves Nasdaq Rule Adding $5 Million Market Value Delisting Standard

The SEC approved a Nasdaq rule change that requires listed companies to maintain a market value of at least $5 million or face suspension and delisting without a cure period.

In the order, the SEC stated that securities with persistently low market values face a heightened susceptibility to manipulation and that market makers have greater difficulty maintaining fair and orderly markets in such securities.

The rule requires companies listed on the Nasdaq Global Select Market, Nasdaq Global Market, and Nasdaq Capital Market to maintain a Market Value of Listed Securities of at least $5 million. Companies that fall below the threshold for 30 consecutive business days will receive a delisting determination and will not be eligible for a cure or compliance period.

A timely hearing request will not stay the suspension of trading pending a written decision from the Nasdaq Listing Qualifications Hearings Panel. Affected securities will generally trade on the over-the-counter market during an appeal.

The Hearings Panel may grant an exception of up to 180 days for a company to demonstrate it meets Nasdaq's initial listing requirements.

The order was issued July 22, 2026.