SEC Approves Nasdaq Rule to Delist Securities Susceptible to Manipulation

The Securities and Exchange Commission (SEC) has granted accelerated approval to a proposed rule change by The Nasdaq Stock Market LLC to adopt Listing Rule IM-5101-4. This new rule allows Nasdaq to exercise discretionary authority to delist a security when it determines that doing so is necessary to protect investors, even if the security and the listed company otherwise satisfy all applicable Nasdaq listing standards. The rule enumerates specific factors Nasdaq will consider to assess whether a security's structural characteristics and market history make it susceptible to manipulation. This amendment was filed on May 21, 2026, superseding an original filing from February 20, 2026, and the notice of approval was published in the Federal Register on June 9, 2026.