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MAKING SENSE OF DODD-FRANK

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Dodd-Frank

SEC Approves Revised NYSE Material News Release Rule

by   |   December 6, 2017

The SEC has approved the NYSE’s proposal to amend Section 202.06 of the Listed Company Manual to prohibit listed companies from issuing material news after the official closing time for the NYSE’s trading session until the earlier of:

  • publication of such company’s official closing price on the Exchange, or
  • five minutes after the NYSE’s official closing time.

However, the approved rule includes an exception for publicly disclosing material information following a non-intentional disclosure in order to comply with Regulation FD.

The rule specifies the official closing time is typically 4:00 P.M. Eastern Time, except for certain days on which the official closing time occurs early at 1:00 P.M. Eastern Time.

The change was made to reduce the likelihood of investor confusion that could result if material news is issued prior to the completion of the NYSE’s closing auction but while trading is continuing on other markets.