By Matt Van Tassel, Supervisor, Global Disclosure Services, Business Wire
On Sept. 22, 2015, the NYSE sent to listed company executives a notification that it had amended Section 202.06 of the NYSE Listed Company Manual. The amendments to the NYSE’s Timely Alert Policy became effective on Sept. 28, 2015, and they can be viewed in detail on the SEC website and in the current NYSE manual.
The finalized amendments come after the NYSE proposed revisions to its requirements of listed companies, relating specifically to the timing of companies’ dissemination of material news. With the amendments now enacted, NYSE-listed companies must notify the exchange at least 10 minutes in advance of their release of material news, between 7:00 AM and 4:00 PM Eastern. Previously, this notification was only obligatory between 9:30 AM and 5:00 PM.
The amended rule also includes an advisory, which asks listed companies to refrain from disseminating material news until the publication of its official closing price on the NYSE, or 15 minutes after the close of trading (4:15 PM Eastern).
Nasdaq offered its own guidance this October regarding material news releases distributed around market close (4:00 PM Eastern). The guidance requests that Nasdaq-listed companies not distribute material information between 4:00 – 4:01 PM, until the Nasdaq closing cross is calculated. Best practice, the guidance states, is for companies to wait until 4:05 PM to disclose news, as this will “provide the maximum opportunity for the closing price to be fully disseminated before the release of news.”
Nasdaq also provided a reminder for companies to disclose changes to earnings release dates and dividend record and payment dates as this information may also be considered material.