The New York Stock Exchange has filed a proposal to amend its listing rules to allow companies to comply with its immediate release policy by disseminating information by any Regulation Fair Disclosure-compliant method, rather than always requiring a press release.
Currently, to comply with the Exchange’s immediate release policy—which calls for companies to quickly release to the public any news or information that might reasonably be expected to materially effect the market for its securities—listed companies must issue a press release.
However, the April 8 rule filing proposes to amend Section 202.6 of its Listed Company Manual to provide that companies may comply with the immediate release policy by disseminating information using any method or combination of methods that constitutes compliance with Reg FD, the rule aimed at curbing the selective disclosure of material non-public information, such as filing a Form 8-K with the Securities and Exchange Commission, conference calls, press conferences, and Webcasts, as long as adequate public notice and access are provided.
The change would also allow NYSE-listed foreign private issuers, who aren’t required to comply with Reg FD, to comply with their timely alert policy by any method that would constitute compliance for a U.S. domestic issuer.
The proposed change would harmonize the NYSE requirement with Nasdaq rules.
In its filing, NYSE says it believes that “many companies will continue to issue press releases in relation to material news events, but also believes that it is appropriate to enable companies to utilize the flexibility and discretion with respect to the method of disclosure provided by Regulation FD.”
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