SEC Approves Nasdaq’s $5 Million Market Value Continued Listing Standard
On July 22, 2026, the Securities and Exchange Commission (“SEC”) approved Nasdaq’s proposed rule establishing a new $5 million Market Value of Listed Securities (“MVLS”) continued listing requirement for all companies listed on the Nasdaq Global Select Market, Nasdaq Global Market, and Nasdaq Capital Market.
The rule represents a significant change to Nasdaq’s continued listing standards and could have a meaningful impact on smaller public companies, particularly emerging growth issuers operating in today’s volatile market environment.
Key Takeaways
$5 Million MVLS Requirement Across All Nasdaq Markets
All companies listed on Nasdaq’s Global Select Market, Global Market, and Capital Market must now maintain a minimum Market Value of Listed Securities of $5 million as an ongoing listing requirement.
Delisting After 30 Consecutive Trading Days Below the Threshold
If a company’s MVLS remains below $5 million for 30 consecutive business days, Nasdaq will issue a staff delisting determination, immediately suspend trading of the company’s securities, and commence delisting proceedings. Securities will generally transition to trading on the over-the-counter market.
No Cure Period
Unlike many other Nasdaq continued listing standards, the new MVLS requirement provides no compliance period or opportunity to regain compliance before a delisting determination is issued.
Limited Appeal Rights
A request for a hearing before the Nasdaq Hearings Panel does not automatically stay the suspension of trading. The Hearings Panel may reverse a determination if it concludes Nasdaq made an error or, in limited circumstances, grant an exception of up to 180 days for a company to demonstrate compliance with Nasdaq’s initial listing standards, which are generally more stringent than the continued listing standards. Companies may further appeal an adverse decision to the Nasdaq Listing and Hearing Review Council.
The approval follows significant industry feedback during the rulemaking process, including comment letters from issuers, investors, trade organizations, and market participants expressing concerns about the proposal’s potential impact on capital formation and smaller public companies.