Nasdaq Allows Regulation Staff to Initiate Summary Proceedings
Effective immediately, Nasdaq's Rule 9558 amendment lets Regulation Department staff issue written notices to start summary proceedings, binding members and FINRA.
On August 31, 2026, The Nasdaq Stock Market LLC filed a proposed rule change that the Securities and Exchange Commission published on September 1, 2026. The amendment to Rule 9558 of Nasdaq's disciplinary code is effective immediately, and the Commission is soliciting comments from interested persons.
The amendment revises Rule 9558(a) to permit Nasdaq Regulation Department staff, in addition to Financial Industry Regulatory Authority staff, to issue a written notice that initiates summary proceedings, provided the notice is authorized in writing by Nasdaq's Chief Regulatory Officer. The written-authorization requirement and the specific circumstances that trigger summary proceedings remain unchanged.
Nasdaq characterizes the change as a technical correction designed to eliminate the coordination step with FINRA that can delay time-sensitive actions, such as the expeditious suspension of a member whose financial or operating condition threatens investors, creditors, other members, or the Exchange itself. The revision mirrors the practice of the New York Stock Exchange, whose Rule 9558 already allows its staff to issue such notices.
All other provisions of Rule 9558 continue to apply. Service of a notice under Rule 9558(b) may be effected by facsimile, email, overnight courier, or personal delivery in accordance with Rule 9134, and the notice must contain the specific grounds, factual basis, and hearing-request instructions required by Rule 9558(c).
The filing appears under Release No. 34-106257, File No. SR-NASDAQ-2026-072, FR Doc No. 2026-18113, Federal Register Volume 91, Number 171, pages 56934-56938. The full text is available on Nasdaq's website and at its principal office, and comments may be submitted pursuant to Rule 19b-4.
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