Nasdaq Proposes Changes to its Listing Standards
Nasdaq (NASDAQ:NDAQ) has proposed significant enhancements to its listing standards, introducing more stringent requirements for both initial and continued listings. Key changes include a $15 million minimum market value requirement for public float under the net income standard, an accelerated delisting process for companies with market value below $5 million, and a $25 million minimum public offering proceeds requirement for Chinese companies.
The proposal aims to strengthen investor protection and market integrity by addressing potential pump-and-dump schemes and evolving market dynamics. Implementation will occur promptly after SEC approval, with a 30-day grace period for companies in the initial listing process and 60 days for the new suspension and delisting requirements.
Nasdaq (NASDAQ:NDAQ) ha proposto significative modifiche agli standard di quotazione, introducendo requisiti più severi sia per le quotazioni iniziali sia per il mantenimento della quotazione. Tra le principali novità figurano un requisito minimo di 15 milioni di dollari di capitalizzazione di mercato per la flottante pubblica nello standard basato sull'utile netto, una procedura di delisting accelerata per le società con valore di mercato inferiore a 5 milioni di dollari e un requisito minimo di proventi da offerta pubblica di 25 milioni di dollari per le società cinesi.
La proposta intende rafforzare la tutela degli investitori e l'integrità del mercato, contrastando possibili operazioni di pump-and-dump e adeguandosi all'evoluzione delle dinamiche di mercato. L'attuazione avverrà rapidamente dopo l'approvazione della SEC, con un periodo di grazia di 30 giorni per le società in fase di quotazione iniziale e di 60 giorni per i nuovi requisiti di sospensione e delisting.
Nasdaq (NASDAQ:NDAQ) ha propuesto importantes mejoras en sus criterios de listado, estableciendo requisitos más estrictos tanto para las inscripciones iniciales como para la permanencia en la lista. Los cambios clave incluyen un requisito mínimo de 15 millones de dólares de capitalización de mercado en libre flotación bajo el criterio de resultado neto, un proceso de baja acelerado para compañías con valor de mercado por debajo de 5 millones de dólares, y un requisito mínimo de 25 millones de dólares en ingresos por oferta pública para empresas chinas.
La propuesta busca reforzar la protección del inversor y la integridad del mercado, abordando posibles esquemas de pump-and-dump y las dinámicas cambiantes del mercado. La implementación se realizará de forma rápida tras la aprobación de la SEC, con un periodo de gracia de 30 días para las compañías en proceso de listado inicial y de 60 días para los nuevos requisitos de suspensión y exclusión.
나스닥 (NASDAQ:NDAQ)은 상장 기준을 대폭 강화하는 방안을 제안했습니다. 이는 신규 상장과 상장 유지 모두에 대해 더 엄격한 요건을 도입하는 내용입니다. 주요 변경사항으로는 순이익 기준에서 공개 유통 시가총액 최소 1,500만 달러 요건, 시가총액이 500만 달러 미만인 기업에 대한 상장폐지 절차의 신속화, 중국 기업에 대한 공모금액 최소 2,500만 달러 요건이 포함됩니다.
이 제안은 펌프앤덤프 가능성 및 변화하는 시장 환경에 대응함으로써 투자자 보호와 시장 건전성을 강화하는 것을 목표로 합니다. SEC 승인 직후 신속히 시행되며, 최초 상장 진행 중인 기업에는 30일의 유예기간이, 새로운 정지 및 상장폐지 요건에는 60일의 유예기간이 적용됩니다.
Nasdaq (NASDAQ:NDAQ) a proposé des renforcements significatifs de ses critères de cotation, introduisant des exigences plus strictes pour les introductions et le maintien en cotation. Les changements principaux comprennent une exigence minimale de 15 millions de dollars de capitalisation flottante publique selon le critère du bénéfice net, une procédure de radiation accélérée pour les sociétés dont la valeur de marché est inférieure à 5 millions de dollars, et une exigence minimale de produits d'offre publique de 25 millions de dollars pour les entreprises chinoises.
La proposition vise à renforcer la protection des investisseurs et l'intégrité du marché en s'attaquant aux potentielles opérations de pump-and-dump et aux dynamiques de marché évolutives. La mise en œuvre interviendra rapidement après l'approbation de la SEC, avec une période de grâce de 30 jours pour les sociétés en cours d'introduction et de 60 jours pour les nouvelles exigences de suspension et de radiation.
Nasdaq (NASDAQ:NDAQ) hat bedeutende Verschärfungen seiner Börsenzulassungsstandards vorgeschlagen und führt strengere Anforderungen für Erst- und Fortführungslistings ein. Zu den wichtigsten Änderungen gehören eine Mindestanforderung von 15 Millionen US-Dollar an Marktkapitalisierung der öffentlichen Free Float nach dem Nettoergebnis-Standard, ein beschleunigtes Delisting-Verfahren für Unternehmen mit einem Marktwert unter 5 Millionen US-Dollar sowie eine Mindestforderung von 25 Millionen US-Dollar an Nettoemissionserlösen für chinesische Unternehmen.
Der Vorschlag zielt darauf ab, den Anlegerschutz und die Marktintegrität zu stärken, indem mögliche Pump-and-Dump-Schemata und sich wandelnde Marktdynamiken angesprochen werden. Die Umsetzung erfolgt zügig nach SEC-Zulassung, mit einer 30-tägigen Schonfrist für Unternehmen im Erstlistungsprozess und 60 Tagen für die neuen Aussetzungs- und Delisting-Anforderungen.
- Enhanced investor protection through stricter listing requirements
- Accelerated process for removing non-compliant companies
- Strengthened oversight of Chinese company listings
- Improved measures against potential market manipulation
- May reduce the number of eligible companies for listing
- Could potentially impact Nasdaq's listing revenue
- Stricter requirements might push some companies to alternative exchanges
Insights
Nasdaq's stricter listing standards strengthen market integrity but may limit access for smaller companies and Chinese firms.
Nasdaq's proposed enhanced listing requirements represent a significant regulatory shift with broad implications for market participants. The changes establish
These modifications directly address emerging market vulnerabilities, particularly targeting potential pump-and-dump schemes that have plagued smaller-cap stocks. By raising the barriers to entry and implementing more stringent compliance mechanisms, Nasdaq is effectively creating a higher quality threshold for public companies while potentially reducing liquidity risks for investors.
The enhanced standards follow Nasdaq's pattern of regulatory leadership, building upon previous reforms targeting restrictive markets, improving liquidity requirements, and addressing non-compliance issues. Particularly notable is the specific focus on Chinese listings, which reintroduces heightened scrutiny for companies from markets where PCAOB oversight has been historically limited.
The implementation timeline is structured to balance market stability with regulatory objectives - allowing companies already in the listing process a 30-day grace period, while delisting changes would take effect 60 days post-SEC approval. These measures strengthen Nasdaq's position as a premium listing venue while potentially redirecting smaller or higher-risk issuers to alternative markets.
For existing Nasdaq companies, particularly those with smaller market capitalizations or compliance challenges, these changes significantly raise the stakes for maintaining listing status. The accelerated suspension process for companies with market values below
NEW YORK, Sept. 03, 2025 (GLOBE NEWSWIRE) -- Today, Nasdaq proposed a new set of enhancements to its initial and continued listing standards, reinforcing its long-standing commitment to capital formation while ensuring investor protection and upholding market integrity. These proposed updates introduce enhanced requirements for minimum company public float and capital raised during initial public offerings, alongside stricter suspension and delisting procedures for companies failing to meet Nasdaq’s continued listings standards.
The revised standards include:
- A
$15 million minimum market value of public float, applicable to new listings on Nasdaq under the net income standard. - An accelerated process for suspending and delisting companies with a listings deficiency that also have a Market Value of Listed Securities below
$5 million . - A
$25 million minimum public offering proceeds requirement for new listings of companies principally operating in China.
“Investor protection and market integrity are central to Nasdaq’s mission,” said John Zecca, Executive Vice President and Global Chief Legal, Risk & Regulatory Officer. “These enhancements reflect our ongoing commitment to evolve our standards in step with market realities and to lead by example in promoting fair and orderly markets. By increasing our standards for the minimum public float and the public offering raise in certain new listings, it provides a healthier liquidity profile for public investors, while still making emerging companies available to investors through our exchange. These new listing standards represent one step in a necessary, industry-wide effort—alongside regulators, U.S. exchanges, and market participants—to closely examine trading behaviors in small company securities, with the goal of safeguarding market integrity and enhancing protections for investors.”
The actions announced today follow Nasdaq’s proactive review of trading activity, particularly emerging patterns associated with potential pump-and-dump schemes in U.S. cross-market trading environments. The proposed updates are also reflective of how market dynamics and company valuations have evolved over time, prompting the need to recalibrate Nasdaq’s minimum liquidity standards to suit today’s environment. These enhancements ensure that the thresholds for public listings remain relevant and effective as markets evolve.
As part of these changes, Nasdaq is reintroducing a minimum public offering proceeds requirement specifically for companies principally operating in China, building on previous standards set for “restrictive markets,” in which the Public Company Accounting Oversight Board (PCAOB) could not inspect auditors.1 By applying this threshold, Nasdaq strengthens investor protections and enhances the liquidity profile of companies to reflect today’s market environment.
In addition to the enhanced listing standards, Nasdaq will continue to actively refer cases to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) on potentially manipulative trading activities, while strengthening our cooperation with both domestic and international regulators to reinforce effective oversight and maintain high standards across U.S. markets.
Nasdaq is submitting the proposed rules to the SEC for review and, if approved, is proposing to implement the changes to the initial listing requirements promptly. Nasdaq is proposing to give companies already in the initial listing process a period of 30 days to complete the process under the prior standards, and thereafter all new listings will have to meet the new requirements. Regarding the accelerated process for suspending and delisting companies, Nasdaq is proposing to implement the new requirements 60 days after SEC approval.
These changes build upon Nasdaq’s history of regulatory leadership that have been followed by others, including prior changes aimed at improving liquidity, tightening compliance timelines, and curbing abusive practices such as excessive reverse stock splits. Previous changes include:
- Restrictive Markets:
- In May 2020, Nasdaq proposed, and the SEC approved in October 2021, new rules for IPOs from “restrictive markets” that imposed higher requirements for companies, mainly from China, to list on its markets. The rules required that companies from restrictive markets have a minimum public offering size of
$25 million , or25% of the value of their securities. The new rule that Nasdaq is currently proposing regarding the$25 million minimum public offering proceeds is consistent with the$25 million standard established in the 2020 rule change.
- In May 2020, Nasdaq proposed, and the SEC approved in October 2021, new rules for IPOs from “restrictive markets” that imposed higher requirements for companies, mainly from China, to list on its markets. The rules required that companies from restrictive markets have a minimum public offering size of
- Liquidity requirement changes:
- In July 2019, Nasdaq changed its liquidity requirements to exclude restricted holdings from the shareholder count and public float calculation, and to require at least half of the minimum number of round lot holders to own unrestricted securities with a minimum value of
$2,500. T his change also requires average daily volume requirements for companies that uplist from the Over-the-Counter market. - In September 2022, Nasdaq enhanced its review of smaller IPOs to help ensure underwriters are focused on placing shares in a manner expected to provide adequate liquidity.
- In July 2023, Nasdaq proposed a new rule, approved in March 2024, providing additional oversight of a principal underwriter in a Nasdaq IPO.
- In April 2025, Nasdaq required newly listed companies to satisfy adjusted rules related to meeting market value thresholds solely from shares sold in the IPO, thereby excluding shares held by selling shareholders. These adjustments were made to increase liquidity of the new securities in the marketplace.
- In July 2019, Nasdaq changed its liquidity requirements to exclude restricted holdings from the shareholder count and public float calculation, and to require at least half of the minimum number of round lot holders to own unrestricted securities with a minimum value of
- Enhancements addressing non-compliance:
- In September 2021, Nasdaq implemented a new rule that limited companies’ ability to effect excessive reverse stock splits. Nasdaq also made rule changes that would allow it to move a company into the delisting process immediately if its share price is below
$0.10 for ten consecutive trading days. - In November 2023, Nasdaq made additional changes to require additional disclosures regarding reverse splits and the process for halting stocks undergoing reverse splits.
- In October 2024, Nasdaq further limited the time provided to companies to cure a listing deficiency if that deficiency was caused by a reverse split enacted to regain compliance with bid price requirements.
- In January 2025, Nasdaq decreased the time a company could trade on Nasdaq while below
$1 t o 360 days and prohibited further compliance periods to any company that effected a reverse stock split within the prior year. - In August 2025, Nasdaq proposed new rules to suspend and more quickly delist companies trading below
$0.10 , for ten consecutive trading days, even if they are not otherwise already in a compliance period.
- In September 2021, Nasdaq implemented a new rule that limited companies’ ability to effect excessive reverse stock splits. Nasdaq also made rule changes that would allow it to move a company into the delisting process immediately if its share price is below
Additionally, today, Nasdaq has responded to the SEC’s request for comments regarding the eligibility of foreign companies trading in the U.S. to benefit from less burdensome U.S. reporting obligations. In the letter, Nasdaq emphasized the need to balance the interest in attracting foreign companies to the U.S., with the need to protect all investors in the U.S. public markets, which are the envy of the world.
Together, these efforts underscore Nasdaq’s leadership in fostering a resilient and transparent marketplace that supports appropriate listing standards for issuers and safeguards investor interests. The official filings related to the proposed changes can be accessed via the following links:
- https://listingcenter.nasdaq.com/assets/rulebook/nasdaq/filings/SR-NASDAQ-2025-068.pdf
- https://listingcenter.nasdaq.com/assets/rulebook/nasdaq/filings/SR-NASDAQ-2025-069.pdf
ABOUT NASDAQ
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This communication contains forward-looking information related to Nasdaq and the proposed enhancements to its initial and continued listing standards, including with respect to microcap companies and companies based in China, Hong Kong, and Macau. When used in this communication, words such as “will”, “propose”, “intends”, “plans”, “expected” and similar expressions and any other statements that are not historical facts are intended to identify forward-looking statements. These actions involve risk, uncertainties and assumptions that could cause actual results and the anticipated benefits to differ materially from those expressed or implied by such statements. Further information on risks and uncertainties relating to Nasdaq can be found in its reports filed on Forms 10-K, 10-Q and 8-K and in other filings Nasdaq makes with the SEC from time to time and available at www.sec.gov. These documents are also available under the Investor Relations section of Nasdaq’s website at http://ir.nasdaq.com/investor-relations. The forward-looking statements included in this communication are made only as of the date hereof. Nasdaq disclaims any obligation to update these forward-looking statements, except as required by law.
Media Relations Contact
Emily Pan
+1.646.441.5120
Emily.Pan@Nasdaq.com
David Lurie
+1.914.538.0533
David.Lurie@Nasdaq.com
Foot Notes
1 - The application of this rule to Chinese issuers became null when the PCAOB was able to inspect auditors based in China starting in December 2022. See https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-secures-complete-access-to-inspect-investigate-chinese-firms-for-first-time-in-history.
-NDAQF-
FAQ
What are the main changes proposed in Nasdaq's new listing standards for 2025?
How will Nasdaq's new listing standards affect Chinese companies?
When will Nasdaq's new listing standards take effect in 2025?
What is the purpose of Nasdaq's stricter listing requirements in 2025?
How does Nasdaq's new delisting process work under the 2025 changes?
