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In Brief

Timing of Material News to Be Issued Shortly After NYSE Closing Time

12 December 2017
Mayer Brown In Brief

Section 202.06 of the New York Stock Exchange Listed Company Manual has been amended, with immediate effect, to prohibit listed companies from publishing material news after the official closing time for the NYSE’s trading session until the earlier of 4:05 p.m. Eastern Time or the publication of the official closing price of the listed company’s security.1 Despite this change, the NYSE continues to recommend that if companies intend to issue material news after the NYSE trading session is over, they delay issuing such news until the earlier of the publication of such company's official closing price on the NYSE or 15 minutes after the NYSE's official closing.

The US Securities Exchange Commission order approving the rule change noted that when a listed company issues material news immediately after 4:00 p.m. Eastern Time, but before the completion of the NYSE’s closing auction, “there can be a significant price difference in nearly contemporaneous trades on away markets and the official closing price on the Exchange.” The purpose of the rule change is to alleviate this discrepancy.

This new restriction on issuing material information after the market close does not apply to public disclosure of material information following a non-intentional disclosure in order to comply with Regulation FD.

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1 See the NYSE’s alert to listed company executives

Authors

  • Laura D. Richman
    T +1 312 701 7304
  • John P. Berkery
    T +1 212 506 2552
  • 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
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