The Nasdaq composite isn’t just the second-largest stock exchange in the world. It’s also a so-called self-regulatory organization that has been delegated regulatory authority by Congress and by the Securities and Exchange Commission. It imposes and enforces detailed rules on the companies it lists, but these rules must be approved by the SEC. The SEC must take this approval power seriously, as Nasdaq is now taking steps to abuse its authority over listed companies.

Invoking the imperatives of the “social justice movement” and the “benefits to stakeholders of increased diversity,” Nasdaq is seeking SEC approval to impose a corporate governance rule that would require all listed companies to appoint directors based on sex. Many of these companies would also have to appoint directors on the basis of race, ethnicity, or sexual preference.