Nasdaq proposes tougher listing standards to enhance market integrity

NEW YORK - Nasdaq (NASDAQ:NDAQ), which has delivered a robust 22% return year-to-date and maintains a strong 60.6% gross profit margin, on Wednesday proposed new enhancements to its initial and continued listing standards, introducing stricter requirements for companies seeking to list on its exchange. According to InvestingPro data, the exchange operator’s solid financial performance supports its position to implement these enhanced standards.

The proposed changes include a $15 million minimum market value requirement for public float under the net income standard, an accelerated process for suspending and delisting companies with listings deficiencies and market values below $5 million, and a $25 million minimum public offering proceeds requirement for new listings of companies primarily 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."

The exchange operator indicated the updates follow its review of trading activity, particularly patterns associated with potential pump-and-dump schemes in U.S. cross-market trading environments.

For companies already in the initial listing process, Nasdaq proposes a 30-day grace period to complete the process under prior standards, after which all new listings must meet the new requirements. The accelerated delisting process would take effect 60 days after SEC approval.

These changes build upon Nasdaq’s previous regulatory actions, including restrictions on companies from certain markets, enhanced liquidity requirements, and measures addressing non-compliance issues such as excessive reverse stock splits.

Nasdaq is submitting the proposed rules to the SEC for review and has stated it will continue to actively refer potentially manipulative trading activities to regulators while strengthening cooperation with both domestic and international oversight bodies.

The announcement was made in a press release statement from the company.

In other recent news, Nasdaq Inc. has experienced several noteworthy developments. S&P Global Ratings upgraded Nasdaq to ’BBB+’ from ’BBB’, highlighting a faster-than-expected reduction in leverage following the company’s acquisition of Adenza in 2023. This upgrade was attributed to Nasdaq’s strategic decision to limit share buybacks and prioritize debt repayment, supported by strong EBITDA growth and cash generation. Additionally, UBS has upgraded Nasdaq OMX Group Inc. from Neutral to Buy, citing strong execution and solutions growth, with a new price target of $115.00. Meanwhile, RBC Capital raised its price target for Nasdaq OMX Group Inc. to $108.00, maintaining an Outperform rating based on solid new wins and momentum in cross-sell and up-sell activities.

Furthermore, Nasdaq’s short interest rose to 16.93 billion shares as of August 15, 2025, up from 16.59 billion shares on July 31. This increase reflects a rise in short selling activity relative to overall trading volume. Despite this, the previous report showed a slight decline in short interest for July 31, suggesting fluctuations in investor sentiment. These recent developments provide investors with a comprehensive view of Nasdaq’s current financial and strategic position.

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