Nasdaq Inc. is overhauling its listing standards to expedite the removal of struggling micro-cap companies, following the Securities and Exchange Commission’s approval of new rules aimed at curbing market abuse.
The exchange will now enforce a lower threshold for delisting, targeting firms with a market capitalization of less than $5 million.
Bloomberg data indicates that nearly 180 companies currently listed on Nasdaq fall below this threshold, making them immediate candidates for review under the new framework.
The regulatory shift responds to growing concerns over extreme price volatility and allegations of manipulation in the micro-cap segment.
By lowering the barrier for delisting, Nasdaq aims to improve the overall quality of its listed universe and protect investors from trading in illiquid, high-risk securities.
The move aligns with broader regulatory efforts to enhance market integrity and reduce the prevalence of so-called "penny stock" trading schemes that have drawn scrutiny from federal regulators.