Effective September 28, NYSE Rule 202.06 has been amended to expand the pre-market hours during which companies are required to notify the NYSE of material news so that it can halt trading if necessary, as well as to update certain procedures with respect to the communication of material news.
Previously, listed companies were required to notify the NYSE at least 10 minutes prior to releasing material news “shortly before” or during trading hours. Under the amended rules, pre-market notifications are required for news releases between 7:00 and 9:30 a.m. The NYSE noted that many companies release news during this period and that volatility in pre-market trading can affect the market open. However, a pre-market trading halt will be instituted only at a listed company’s request. When halts are instituted at the NYSE’s request, other national securities exchanges, some of which are open during pre-market hours, will also halt trading. Notifications are required until market close at 4:00 p.m.
For after-market material news releases, companies are now advised to wait until 4:15 p.m. (or 15 minutes after trading closes), or until the security’s official closing price is published, so that all open trades may be executed at the NYSE closing price without disruption.