SEC Sets October 6 Deadline for Public Input on Nasdaq’s Stayed $5 Million MVLS Listing Rule

Update to our August 4 alert, “Nasdaq’s New $5 Million MVLS Rule Stayed Pending Full Commission Review,” and our July 22 alert, “SEC Approves Nasdaq’s New $5 Million MVLS Requirement, Triggering Immediate Delisting Risk.”

The Securities and Exchange Commission (SEC or Commission) has published in the Federal Register its order granting review of the approval of Nasdaq’s controversial $5 million Market Value of Listed Securities (MVLS) continued listing requirement and staying the rule pending full Commission review.

As a result, the rule remains not in effect, and Nasdaq-listed companies are not currently subject to the new MVLS standard, its accelerated delisting framework or the related amendments to Nasdaq’s listing rules while the stay remains in place.

The Federal Register publication also establishes a key procedural milestone. Interested parties may now submit written statements to the SEC in support of, or opposition to, the approval order. The deadline to submit comments is October 6, 2026.

As discussed in our prior alerts, the underlying rule would require Nasdaq-listed companies to maintain at least $5 million in MVLS and would impose a substantially accelerated delisting process for issuers that fall below the threshold. The rule drew significant opposition during the comment process, including concerns regarding the absence of a traditional cure period and the elimination of the automatic stay of suspension pending appeal.

The SEC’s decision to grant review means those issues will now be considered by the full Commission. Following review, the SEC may affirm, modify, set aside or remand the original approval order.

For issuers, investors and other market participants, the October 6 deadline provides an opportunity to submit views on the rule and its potential impact on capital formation, public company compliance, market structure and investor protection. Companies that could be affected by the proposed standard should consider whether participation in the comment process is appropriate.

How Glaser Weil Can Help

We will continue monitoring developments and provide updates as the review progresses.

Glaser Weil's Capital Markets practice regularly advises Nasdaq-listed companies on exchange compliance matters, SEC regulatory developments, corporate governance, public company reporting obligations and capital markets transactions. Companies with questions regarding the Commission's review or the potential impact of the proposed MVLS requirement should contact the author or their regular Glaser Weil attorney.

This alert is provided for general informational purposes only and does not constitute legal advice. Receipt of this alert does not create an attorney-client relationship.

Author Note: Marc Indeglia also serves as President of the Small Public Company Coalition, a petitioner that sought and obtained review of the MVLS rule and that is further seeking to have the rule set aside.