Summary
The Securities and Exchange Commission (the “SEC”) has approved Nasdaq’s proposal to adopt a new continued listing requirement requiring companies listed on the Nasdaq Global Select Market, Nasdaq Global Market, and Nasdaq Capital Market to maintain a minimum Market Value of Listed Securities (the “MVLS”) of $5 million. The rule introduces a new quantitative continued listing standard that may result in expedited delisting for companies with sustained low market values.
This rule became effective on July 22, 2026, upon SEC approval. You may find the SEC’s order here.
Overview of the New Listing Standard
Under the new rule:
- The requirement applies to companies listed on the Nasdaq Global Select Market, Nasdaq Global Market, and Nasdaq Capital Market.
- Companies must maintain an MVLS of at least $5 million.
- A company whose MVLS remains below $5 million for 30 consecutive business days will receive an immediate Staff Delisting Determination.
No Compliance Period
Unlike most Nasdaq continued listing deficiencies, the new MVLS standard does not provide a compliance or cure period. Once the 30-consecutive-business-day threshold is reached, Nasdaq will issue a Staff Delisting Determination without first providing an opportunity to submit a compliance plan or a grace period to regain compliance.
Appeal Does Not Automatically Stay Suspension of Trading
Companies retain the right to appeal a Staff Delisting Determination to a Nasdaq Hearings Panel. However, unlike most Nasdaq hearings, a timely request for a hearing does not automatically stay the suspension of trading. As a result, a company’s securities generally will be suspended from trading on Nasdaq and may trade on the over-the-counter market while the result of the hearing is pending.
Higher Standard During the Appeal Process
A Hearings Panel may:
- reverse the Staff Delisting Determination if it concludes the determination was made in error; or
- grant an exception of up to 180 days for the company to demonstrate compliance with Nasdaq’s applicable initial listing requirements.
Importantly, restoring MVLS above $5 million alone is not sufficient. If an exception is granted, the company must demonstrate compliance with the applicable initial listing standards, which generally impose more stringent quantitative requirements than the continued listing standards. The applicable standards will depend on the issuer’s Nasdaq market tier.
Companies listed on The Nasdaq Stock Market LLC should monitor compliance with the new MVLS requirement and evaluate its potential impact on their continued listing status.
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