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In Brief

NYSE to Delay Implementation of 10-Minute Advance Notice Policy for Dividend and Stock Distribution Announcements

5 September 2017
Mayer Brown In Brief

The New York Stock Exchange (NYSE) has proposed delaying the implementation of its new policy requiring listed companies to provide notice to the NYSE at least 10 minutes before making any public announcement with respect to a dividend or stock distribution, even outside of trading hours.

For now, the requirements of the pre-amendment versions of Sections 204.12 and 204.21 of the NYSE Listed Company Manual (NYSE Manual), dealing with notices of actions regarding dividends and stock distributions and their related record dates, remain operative. Until the new implementation date, notices of dividends and stock distributions must be given to the NYSE as soon as possible after declaration by a company’s board of directors, but no later than simultaneously with the announcement to the news media, as opposed to 10 minutes before any news media announcement.

New Implementation Date
As proposed, the new implementation date for the 10-minute advance notice policy for dividend and stock distribution announcements will be no later than February 1, 2018. The NYSE will provide reasonable advance notice of the new implementation date to its listed companies by emailing a notice to them that will also be posted on its website, nyse.com.

Reason for Delay
According to the NYSE’s filing with the US Securities and Exchange Commission (SEC) dated August 22, 2017, the delay would allow additional time for NYSE-listed companies to prepare to comply with the new notice policy, as well as allowing NYSE systems to provide the necessary support to its staff in reviewing notifications.

10-Minute Advance Notice
As we reported in our Legal Update “NYSE Now Requires 10-Minutes Advance Notice of Dividend and Stock Distribution Announcements, Even Outside of Trading Hours,” dated August 21, 2017, the SEC approved amendments to the NYSE Manual to require listed companies to provide notice to the NYSE at least 10 minutes before making any public announcement with respect to a dividend or stock distribution, including when the announcement is being made outside of the NYSE’s trading hours.

Authors

  • Laura D. Richman
    T +1 312 701 7304
  • Jennifer J. Carlson
    T +1 650 331 2065
  • Robert F. Gray, Jr.
    T +1 713 238 2600
  • Michael L. Hermsen
    T +1 312 701 7960
  • Thomas Kollar
    T +852 2843 4260
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