Nasdaq Inc. will change its rules to make it easier to kick off flailing businesses as regulators zero in on wild market swings and allegations of manipulation that have plagued trading in so-called microcap stocks. The exchange operator's move follows SEC approval of a rule change designed to streamline the delisting process for companies that fail to meet continued listing standards.

The new framework targets tiny companies with limited liquidity and opaque operations, which have been at the center of volatile trading episodes. By accelerating removals, Nasdaq aims to protect investors from pump-and-dump schemes and other abusive practices that thrive in the microcap segment.

Market participants say the stricter standards could reduce the number of microcap stocks on the exchange, potentially improving overall market quality. However, critics argue that faster delistings may push risky securities into less regulated over-the-counter markets.

The rule change reflects broader regulatory scrutiny of market structure vulnerabilities, with the SEC signaling continued focus on protecting retail investors from manipulation in low-float securities.