2026-04413NoticeWallet

Nasdaq's New Rule: Boot Stocks Already Halted by SEC

Published Date: 3/6/2026

Notice

Summary

Nasdaq wants a new rule that lets them remove stocks from their market if the SEC has already stopped trading those stocks and Nasdaq thinks it’s the right move for everyone. This change helps keep the market safe and fair for investors by cutting out risky or suspicious stocks. The rule is up for review now, and if approved, it could speed up how Nasdaq handles these tricky situations.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Nasdaq Can Delist After SEC Suspensions

Nasdaq proposes a new rule (IM-5101-4) that would let Nasdaq delist a company's securities where the SEC previously suspended trading under Section 12(k). Nasdaq would use this authority on a case-by-case basis and only after the Commission has implemented a trading suspension.

Delisting Based on Listed Factors

If the Commission suspends trading under Section 12(k), Nasdaq may consider specific factors — such as the company's jurisdiction, public float and trading patterns, evidence of third-party social media schemes, advisor issues, disclosures, recent share issuances, and going concern audit opinions — when deciding whether to delist the security. Nasdaq will apply these factors to decide if a security is susceptible to manipulation and inappropriate for continued listing.

Nasdaq Can Request Info and Halt Trading

Nasdaq may request additional information from an issuer when deciding whether to apply its delisting discretion, and that information request can form the basis for a trading halt under Nasdaq Rule 4120(a)(5)(B). Such trading halts would occur while Nasdaq seeks information relating to the issuer's ability to meet Nasdaq listing qualification requirements.

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Key Dates

Published Date
3/6/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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