New York Stock Exchange would require listed companies to hold off on releasing company news for five minutes after each day's 4 p.m. ET market close, under a proposal submitted to the SEC.
The exchange said issuing news releases immediately following the close of trading on the NYSE can affect share prices of the company on other exchanges and non-exchange venues, causing significant price differences between those share prices and the closing price, according to a filing Tuesday with the Securities and Exchange Commission.
NYSE already advises listed companies to delay the issuance of news releases until their listed prices are made official after the market closes or 15 minutes after the close, whichever comes first, but "the exchange has continued to experience situations where material news released shortly after 4 p.m. has caused significant investor confusion," NYSE said in the filing.
The proposal requires approval from the SEC.
The complete proposal is on the SEC's website.
