Nasdaq Pushes for Easier Multi-Class ETF Trading Rules
Published Date: 5/27/2025
Notice
Summary
Nasdaq wants to make it easier to list and trade Multi-Class ETFs—special funds with different types of shares—by adopting a new rule. This change affects investors and fund managers by allowing more flexible ETF options starting soon, with no extra costs expected. The SEC is now asking for public feedback before giving the green light.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
Generic Listing of Multi‑Class ETFs
Nasdaq proposes Rule 5703 to let Multi‑Class ETF series that comply with Rule 6c-11 and have applicable exemptive relief be listed and traded generically on Nasdaq. Once the SEC grants the exemptive relief for a fund, that fund’s ETF class could be listed and traded without a separate Section 19(b) approval or notice of effectiveness.
Lower Listing Burdens for Fund Issuers
Nasdaq says listing Multi‑Class ETF Shares under proposed Rule 5703 avoids the older quantitative portfolio and ongoing compliance requirements in Rules 5705(b) and 5735. That change is intended to reduce the additional listing and compliance burdens funds would face if they were listed under the older rules.
Ongoing Compliance, Reporting, and Halt Powers
Issuers of Multi‑Class ETF Shares must keep meeting Rule 6c-11 and any exemptive relief and must notify Nasdaq promptly if they fail to comply. Nasdaq will maintain surveillance, can halt trading under Nasdaq Rules 4120/4121, and may commence delisting if continuance criteria are not met.
Delisting Trigger: Fewer Than 50 Holders
A series of Multi‑Class ETF Shares may be subject to delisting proceedings if, after the first 12 months of trading, there are fewer than 50 beneficial holders for 30 or more consecutive trading days. Nasdaq may also suspend trading or delist a series if the issuer is no longer in compliance with Rule 6c-11 or applicable exemptive relief.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
Previous / Next Documents
Previous: 2025-09386, Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Acid Rain Program Under Title IV of the Clean Air Act Amendments (Renewal)
The EPA is asking to keep collecting info for the Acid Rain Program, which helps control pollution from power plants. This affects companies that produce acid rain-causing emissions and keeps the program running smoothly without extra costs. They’re giving the public 30 more days to share thoughts before final approval, with the current approval ending May 31, 2025.
Next: 2025-09388, Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule Regarding Dedicated Cores
Cboe BYX Exchange is updating its fee schedule to add charges for Dedicated Cores, which are special trading connections used by some market participants. This change affects traders using these Dedicated Cores and takes effect immediately, meaning they should expect new fees starting now. The update helps the Exchange cover costs and keep things running smoothly.