On July 22, 2026, the Securities and Exchange Commission approved The Nasdaq Stock Market LLC (“Nasdaq”) rule that will require companies listed on the Nasdaq Global Select, Global, or Capital Market to maintain a minimum market value of listed securities of at least $5 million (the “MVLS Requirement”).
Under the newly approved rule, if a company fails to meet the MVLS Requirement for 30 consecutive business days, its securities will be suspended and immediately delisted from Nasdaq, even if it is appealing a delisting determination to a Nasdaq Listing Qualifications Hearings Panel (the “Panel”). If a company appeals a delisting determination under the newly approved rule, the Panel will have limited discretion to reverse the delisting decision. The Panel will only be able to reverse the decision if the Panel determines the delisting determination was issued in error or if it grants an exception for up to 180 days for the company to demonstrate compliance with all of the requirements for initial listing on Nasdaq, which are stricter than the requirements for continued listing.
The newly approved rule will make it more difficult for micro-cap companies to remain listed on Nasdaq, particularly if they experience large, extended fluctuations in their market capitalizations. This rule could cause widespread delistings of micro-cap companies as soon as early September 2026.
If you have any questions about the application of the new rule, maintaining or regaining compliance with Nasdaq rules, appealing a delisting determination to a Panel, or planning for a transition from Nasdaq, please contact a member of Harter Secrest & Emery LLP’s Securities and Capital Markets group.