NYSE Amends Rule on Material News Notification and Trading Halts: NYSE Extends the Pre-Market Notification Period During Which Listed Companies Are Required to Notify the NYSE Prior to Disseminating Material News, Expands the NYSE’s Authority to Halt Trading and Revises Guidance on News Dissemination MethodsSullivan & Cromwell LLP - October 8, 2015
The New York Stock Exchange (the “NYSE”) recently amended its rule governing the procedures that NYSE listed companies must follow when releasing information that might reasonably be expected to materially affect the market for their securities (“material news”). The amendment to Section 202.06 of the NYSE Listed Company Manual:
- extends to 7:00 a.m. Eastern Time, the hours during which NYSE listed companies are required to notify the NYSE prior to releasing material news;
- expands the NYSE’s authority to halt trading, including at the request of a NYSE listed company during pre-market hours;
- provides guidance on disseminating material news after the market closes; and
- revises the methods by which to achieve immediate and widespread dissemination of material news.