SEC Extends Review of Nasdaq Delisting Proposal
Commentary by Steven Lofchie
The SEC extended its deadline to review a Nasdaq Stock Market LLC ("Nasdaq") proposal to delist a security previously suspended from trading.
In the Notice, published in the Federal Register, the SEC extended its standard 45-day review window until June 4, 2026. The proposed rule, listing Rule IM-5101-4, would give Nasdaq the authority to delist a security where the SEC previously suspended trading and Nasdaq determines delisting is appropriate and in the public interest. Nasdaq filed the proposed rule change on February 20, 2026, and it was published for public comment on March 6, 2026.
By the new June 4, 2026 deadline, the SEC must approve, disapprove, or institute proceedings to determine whether to disapprove the rule change.
Commentary
The SEC suspended trading in a good number of stocks in 2025. Many of these were organized in an island jurisdiction with main offices in Asia. Even when it is evident that the issuer's securities are of little value, regulatory action to remove them from the market appears excessively deliberate.
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