NYSE Amends Timely Alert Policy; Nasdaq Provides Guidance on Material News Disclosure at Market Close

November 13, 2015

By Matt Van Tassel, Supervisor, Global Disclosure Services, Business Wire

NYSE and NASDAQ

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.

Click here to view our original blog on the proposed NYSE requirements.
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NYSE Proposes Changes to Material News Notification Requirements for Listed Companies

September 14, 2015

By Matt Van Tassel, Business Wire

Last week the NYSE submitted a proposal to the SEC to update some of their material news requirements for listed companies. The two points of the proposal that will be of most interest to Business Wire clients are the extension of the pre-market notification requirement and a change to when companies should disclose announcements after market.

Pre-Market Notification

The proposal expands the time for companies to comply with the Material News Policy to between the hours of 7:00 AM – 4:00 PM Eastern. Currently companies must disclose material news announcements to the NYSE, at least ten minutes prior to wire dissemination between the hours of 9:30 AM – 5:00 PM Eastern.  The reasoning behind the expansion is that most material news is released prior to 9:30 AM and has the potential to cause both price and volume volatility on other markets during this time, as well as at market open.

Note: Newswires like Business Wire do not handle pre-notification of material news to the exchange. 

Post-Market News Dissemination (4:15 PM is the new 4:00 PM)

The NYSE is proposing companies should wait to disseminate their material news announcements until either the publication of their securities’ official closing price on the Exchange or 15 minutes after the scheduled closing time on the Exchange (which is 4:00 PM Eastern). Why you may ask? Even though the NYSE is closed at 4:00 PM, there are other markets where those securities are being actively traded. This in turn can create discrepancies in the stock’s pricing which may cause investor confusion.

We will continue to monitor these proposed changes to the NYSE notification process and keep you updated.

For additional details, visit Dodd-Frank.com’s summary of the proposed changes.

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Best Practices Guide to Successfully Navigating Social Media for Publicly-Held Companies

January 16, 2014

By Serena Ehrlich, Director of Social + Evolving Media

We are excited to share our latest guide for investor relations and corporate communication professionals outlining the steps they should take (and avoid) to both engage and manage their reputation across social channels.

Business Wire Benefits of SM for IROs

This report details the opportunities and risks of using social media as both a research and communication tool in today’s investor relations programs.  Included are 12 ways investor relations professionals can leverage social media tools for a stronger, more effective engagement program, as well as 12 reasons why social media platforms are not compliant communication tools.

Embracing social media as a news sharing and engagement tool

Business Wire continues to advocate utilizing social media channels to amplify the visibility of company news.  These channels, designed to enhance the communication between organizations and their members, are perfect for brand advocacy.

Business Wire’s guidance for running a successful and legally compliant socially oriented investor communication program include:

  • How to spot an emerging crisis or reputation attack using social media monitoring
  • The importance and impact of multimedia to analysts and other key constituents
  • Real time communications, or why live tweeting earnings works so well
  • Ways to initiate and expand third party sharing of pertinent company information increasing the visibility and authority of your news

Avoiding social channels as a sole means of sharing financial or disclosure oriented news

For the last 4 months, we have taken a long hard look at the concept of utilizing social media distribution channels for financial disclosure.  While we are obviously big fans of utilizing social media as a tool to share news and information, the technology simply is not there yet for these channels to replace traditional disclosure platforms.

Business Wire’s guidance on why social media platforms are not appropriate as the sole method of disclosure includes:

  • Potential coverage limitation
  • Lack of visibility of social updates
  • The impact and risk of message modification
  • Social network demographics and usage rates

To download this free guide in its entirety, visit http://go.businesswire.com/social-media-for-financial-disclosure
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Want to schedule a time to speak with a Business Wire sales representative about social media, news distribution and disclosure compliance?  Let us know!


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