Nasdaq is moving to remove struggling microcap companies more quickly after the SEC approved a rule that will immediately suspend and delist companies whose listed securities remain worth less than $5 million for 30 consecutive days. Nearly 180 Nasdaq-listed companies currently have market capitalizations below that threshold, with roughly one-third based in Asia, and the SEC estimates that hundreds of microcap companies would have failed the new requirement over the years, including 140 in 2023 alone. The change has drawn support from Citadel Securities, Charles Schwab, and Sifma, but small businesses and their advisers have strongly opposed it, warning it could damage capital formation and pressure legitimate startups.
Nasdaq IncNasdaq's own rule change may affect its listing business, but impact is mixed: faster delisting could reduce revenue but also improve market quality.
Charles Schwab Corp