NYSE dividend notice requirement — delayed effectiveness



September 08, 2017

Securities Law Alert

Author(s): Kelly D. Babson, Tevia K. Pollard

NYSE requests delaying effectiveness of its rule requiring  NYSE-listed companies to provide notice to the NYSE at least 10 minutes before making any public announcement with respect to a dividend or stock distribution.

On August 22, 2017, the New York Stock Exchange (NYSE) filed a proposal with the Securities and Exchange Commission (SEC) to delay the effectiveness of its rule, approved on August 14, 2017, which requires NYSE-listed companies to provide notice to the NYSE at least 10 minutes before making any public announcement with respect to a dividend or stock distribution. Nixon Peabody’s alert describing the new advance notice requirement is available here.

In its proposal requesting the delay, the NYSE indicates that delayed effectiveness of the rule would allow NYSE-listed companies additional time to change internal procedures to comply with the new requirements. Delayed effectiveness would also allow the NYSE additional time to implement its own internal systems for reviewing the newly required notifications.The NYSE states in its proposal that it will provide reasonable advance notice of the effective date of the rule, which will be no later than February 1, 2018, by emailing a notice to NYSE-listed companies and posting a notice to the NYSE website. The text of the approved rule has not been amended.

The NYSE’s proposal requesting delayed effectiveness of the rule is available here.

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