04 September 2017

US Corporate Law News: NYSE proposes to amend material news release policy


In late August 2017, the NYSE proposed to amend its policy with respect to material news releases. Notwithstanding previous amendments to its policies on material new releases, the NYSE has continued to experience situations where material news released shortly after 4:00 p.m. has caused significant investor confusion. Accordingly, the NYSE is now proposing to prohibit listed companies from issuing material news after the official closing time for the NYSE's regular trading session until the earlier of publication of such company's official closing price on the NYSE or five minutes after the official closing time. The NYSE has indicated that it believes that designated market makers are able to complete the closing auctions for the securities assigned to the market maker in almost all cases within five minutes of the NYSE official closing time. In the proposed rule, the NYSE continues to recommend that companies that intend to issue material news after the NYSE's official closing time delay doing so until the earlier of publication of such company's official closing price on the NYSE or fifteen minutes after the Exchange's official closing time. The proposals are subject to SEC approval, and comments are due within 21 days after Federal Register publication. For more information, see https://www.sec.gov/rules/sro/nyse/2017/34-81494.pdf.

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