NYSE Rule Changes on Announcements Outside Market Hours

The New York Stock Exchange has amended its rules regarding public announcements by listed companies outside of market hours. The amendments may impact the manner in which M&A transactions are announced. First, listed companies must provide notice to the NYSE at least ten minutes before making any public announcement with respect to dividends irrespective of the time of day or day of the week. The SEC approved this amendment on August 14, 2017. The rule’s effectiveness will be delayed to give companies and the NYSE enough time to put in place appropriate procedures. The NYSE will give companies at least 30 days’ notice via email of the new effective date, which will be no later than February 1, 2018. Secondly, on August 29, 2017, the NYSE submitted a proposal to prohibit listed companies from releasing material news for up to five minutes after market close; the SEC has yet to approve this proposal. More details on the rule changes are available in S&C’s recent client memo.