2026-05480NoticeWallet

NYSE Amends Rules for Faster Company Delisting Processes

Published Date: 3/20/2026

Notice

Summary

The New York Stock Exchange wants to change a rule about how companies get delisted (kicked off the exchange). These changes clarify when a company can be removed and how the Exchange can stop trading their stock. This affects companies listed on the NYSE and could speed up delisting decisions, with the SEC reviewing the rule by March 17, 2026.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Immediate Delisting Below $0.25

If a NYSE-listed stock closes below $0.25 on any trading day, the Exchange would immediately suspend trading and begin delisting proceedings. Companies subject to this Minimum Trading Price ($0.25) would not be eligible to use the normal cure procedures in Sections 802.01C, 802.02, and 802.03 to try to regain compliance.

Delisting for Precipitous, Abnormally Low Prices

The Exchange would be able to suspend trading or delist a security when, in its opinion, the trading price has experienced a precipitous decline and is at an abnormally low level from which it is unlikely to recover, even if the share price has not fallen below $0.25. Issuers would still retain the right to appeal an Exchange delisting decision under Section 804.00.

Transition Period and Reverse-Split Limits

The Exchange proposes the rule be effective October 1, 2026, providing a transition period for issuers to implement reverse stock splits before the $0.25 Minimum Trading Price takes effect. Existing Exchange limits would remain in place, including prohibitions on (1) one or more reverse stock splits with a cumulative ratio of 200 shares or more to one in a two-year period and (2) a reverse stock split that results in a company becoming non-compliant with the requirements of Section 802.01A.

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Key Dates

Published Date
Effective Date
3/20/2026
10/1/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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