Tag: Nasdaq Listing and Hearing Review Council

Nasdaq proposes to codify new standards for review by Listing Council [Updated 10/17/24]

Nasdaq is proposing to codify the standards of review that govern appeals and reviews before the Nasdaq Listing and Hearing Review Council, referred to as the Listing Council. When a listed company receives a Staff Delisting Determination or a Public Reprimand Letter, or when its application for initial listing is denied, the company may request a review before a Hearings Panel.  The decision by the Hearings Panel may then be reviewed by the Listing Council, either on appeal by the company or on the Listing Council’s own initiative. Nasdaq observes that the use of the Listing Council “helps address the perception of conflicts that may otherwise exist given Nasdaq’s status as both a self-regulatory organization and a for-profit entity.” Currently, however, there is no standard of review applicable to these Listing Council reviews of Hearings Panel decisions and, as even Nasdaq acknowledges, the Listing Rules are ambiguous regarding the extent of the Listing Council’s mandate in this context. Accordingly, Nasdaq now proposes to adopt two new standards of review: one standard—intended to “limit frivolous and baseless appeals”—for appeals of Hearings Panel decisions before the Listing Council and a second standard for Hearings Panel decisions called for review by the Listing Council. Nasdaq would apply the new standards of review to all matters that enter the Listing Council review process following approval of the proposal; matters pending review by the Listing Council when the proposal becomes effective would remain subject to current rules.